Question
Dalcar Incorporated operates the sole producer of tin stars in Outer Alveria. The company is located at the site of the only known deposit of
Dalcar Incorporated operates the sole producer of tin stars in Outer Alveria. The company is located at the site of the only known deposit of tin ore in the world. They are operating at full capacity of their 1,000,000 square foot operation. They are employing all available labor in the country of Alveria.
The sales manager comes to your boss with a proposal that you should incorporate a line of tin flasks into your production because these would be just as profitable as the tin stars you are making. The sales manager has a plan to produce 10 million tin flasks along with the 10 million tin stars that you are currently producing. Your first response in that you cannot do this but your sales manager threatens to take the proposal to the Board of Directors to override your decision. Explain why this NOT possible in short 2 page response.
The Board is not well versed in economics, so you will need to incorporate the following concepts scarcity, opportunity cost, marginal thinking and production possibility issues.
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