Help Mee,,
Mbeya cement company which has a rising short run marginal cost curve is currently operating at a loss ,mbeya cement company's chief economist says that if the prices rises A little ,the output should not be increased because if it's marginal cost would rise and the company would end up with a bigger loss on a high volume.should the chief executive officer of mbeya cement company listen to the chief economist????why or why not?
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Yes, the CEO of Mbeya Cement Company should listen to the Chief Economist. The Chief Economist is likely familiar with the company's cost structure and the economics of the industry, and is likely in the best position to advise the CEO on how to maximize profits. If the company increases output and prices rise, the marginal cost of production will increase, resulting in a larger loss. Therefore, the Chief Economist's advice should be taken into consideration.
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