Question
Boston Brands produces 750 - milliliter bottles of Fireball Cinnamon Whiskey at the Lewiston plant. The parent company is Sazerac Company (which bought former White
Boston Brands produces 750-milliliter bottles of Fireball Cinnamon Whiskey at the Lewiston plant. The parent company is Sazerac Company (which bought former White Rock Distilleries from Bean Inc. in 2013).
"... Boston Brands announced its $1 million expansion here in Lewiston creating 30 new jobs in additiontothe130Mainepeopletheyalreadyhademployed...PlantmanagerAndyMuschinski said the new investment will increase the Saratoga Street plant's capacity by 20% by replacing an older production line with a more efficient one. It will also mean 50 new hires, some as soon as possible. ... (The plant) runs 24 hours a day, five days a week - with some weekends - to meet demand..." (adapted from a Sun Journal report)
We've discussed the mobilization of economic resources, the allocation of economic resources, and the distribution of goods and services.
During the pandemic, Sazerac Co., the owner of the Lewiston manufacturing facility for Fireball Cinnamon Whisky, announced that 10 of the plants nationwide would make hand sanitizer to help with the coronavirus pandemic. The product was donated to health care, government, military, retail distribution, airline, pharmacy, and banking industries. Supplies had dwindled, leading to some firms, such as Sazerac Co. adding production capacity to cope with the immense industrial demand.
Explain the plant's decision to change production in terms of (1) mobilization (or remobilization) of resources AND (2) allocation of economic resources. You might want to incorporate Robert Heilbroner's definitions of these two terms in your response. Include the opportunity cost of the firm's decision to switch to the production of hand sanitizer.
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