Question

ㄈ 7. Shan On Elevator Elevators generally break down at random times and for different reasons. Elevator maintenance contractors must have trained service personnel to provide emergency service. Shan On Elevator has 200 service personnel to maintain 1,000 elevators. routine and Suppose that Shan On has received a contract to maintain an additional 1,000 elevators. Do you expect that Shan On will need to double service personnel? Why or why not? Does the example in (a) illustrate economies of scale or scope? Escalators and elevators use quite different technology and parts. But many clients operate both escalators and elevators. Are there any economies of scope for a contractor to maintain both escalators and elevators? a. b. c.

please do not answer the guided question I just want to know the main objective of this case study and if you could provide background information about the company thank you

Answer 1

The main pbjective of the case study is to look how you analyse how the decisions at the marginal level be taken. Another objective is to see whether complimentarities in service lead to economies of scale or scope.