Two day class simulation of a car factory. Students work together to figure out how many workers will maximize output and how many cars should be produced per hour to maximize profit.
Objectives of Simulation :
1. Explain how firms decide how much labor to hire in order to produce a certain level of output
2. Analyze the production costs of firms
3. Explain how a firm chooses to set output
4. Identify the factors that a firm must consider before shutting down an unprofitable business