Assignment Instructions

Discuss and compare the advantages and disadvantages of survey methods and test marketing..

Please answer the following questions in detail;
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1.  Discuss and compare the advantages and disadvantages of survey methods and test marketing.
2. Does optimal use of an input (such as labor) mean maximizing average output (per unit of input)? Explain.
3. Explain the difference between diminishing returns and decreasing returns to scale
4. Over the next two years, labor costs are expected to be unchanged, but dress prices are expected to increase to $50. What effect will this have on the firm’s optimal output? Explain. Suppose instead that inflation is expected to increase the firm’s labor cost and output price by identical (percentage) amounts. What effect would this have on the firm’s output?
5. Comment on the following statement: “Average cost includes both fixed and variable costs, whereas marginal cost only includes variable costs. Therefore, marginal cost is never greater than average cost.”
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Note:
1. Your assignment should be 3 – 4 pages in length and written in APA style format.
2. Separate title and reference page (minimum of 3 or 4 references)
3. Double spaced with 12 point Times Roman font and 1” by 1.5” margins.
4. Paraphrasing of content – Demonstrate that you understand the case by summarizing the case in your own words. Direct quotes should be used minimally.

Discuss and compare the advantages and disadvantages of survey methods and test marketing.

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