Iscussion 5resource allocation decisions
Practice making resource allocation decisions
The economic theory of production consists of a conceptual framework to assist managers in deciding how to most efficiently combine various inputs to produce a desired amount of product. However, as you will see in the following discussion, pure economics is not always the only consideration. Practice making resource allocation decisions in your own home.
Please respond to all of the following prompts in the class discussion section of your online course:
Read the Managerial Challenge: Green Power Initiatives Examined: What Went Wrong in Californiaas Deregulation of Electricity? starting on page 230. Answer the following questions:
If you were required to pay three times as much for electricity use in the early evening as early in the morning, how would you allocate your resources to minimize the impact? What would you do? Be specific.
In your community, do you have a choice whether to use coal or natural gas as a source of electricity? If so, what are the tradeoffs? If not, use your knowledge of economic tradeoffs to speculate why your community has only one option.