Southwest

Paper #2: Cost Analysis Paper

Using the business you selected for the Pricing Paper, write a 4-5 page Cost Analysis paper. Consider these thoughts as you write:

a. Is the business currently earning an economic profit or suffering from economic losses?
b. What factors of production go in to producing the good or service, and how are these factors organized?
c. Has any current change in production cost affected the firm’s profitability? What future increases or decreases in production cost will affect the firm’s

profitability?
d. What impact have economies of scale, economies of scope, or technology had on productivity and costs for the good or service?