Making the Connection Adam Smith’s Famous Account of the Division of Labor in a Pin Factory

Making the Connection Adam Smith’s Famous Account of the Division of Labor in a Pin Factory

Instructions 

• Read the Making the Connection short case titled Adam Smith’s Famous Account of the Division of Labor in a Pin Factoryin Chapter 11 of our textbook, and also be sure to watch the video right under the Making the Connection title (maybe a few times). Then post your first posting this week beginning to discuss what you’ve read and watched in the video.
• Then work on Problems and Applications 3.7, at the end of Chapter 11, answering and discussing the question in that exercise.

Answer Preview 

If I were a manager is would adopt a method which is to increase prices slightly in order to increase the profits when the cost of production cannot be controlled. This approach will ensure that the same level of sales provides higher levels of income. Through this approach, the profit will increase substantially since the production costs for the company will be maintained at the same level and the sales volume. This would be a short-term strategy that can increase profits and if it is found to be effective it can be utilized as a long-term approach to improving the profitability of the company.

Word Count: 380