1.(TCO A) Suppose you arehired tomanage a small manufacturing facilitythat produ

1.(TCO A) Suppose you arehired tomanage a small manufacturing facilitythat producesWidgets.(a.) (15 points) You know from data collected on the Widget Marketthat market demand has recently increased and market supply hasrecentlydecreased. As manager of the facility whatdecisionsshould you make regarding production levelsandpricing for your Widget facility?Remember that supply and demand are about themarket supply and market demand which is bigger than your owncompany.You are being given data on supply and demand for thewhole market and are being asked what effect that has on you as asmall part of that market.(b.) (15 points) Now suppose that following thesupply anddemand changes in (a)asubstitute goodgoes upinprice and your costs of production decrease.What newdecisions will you make regarding production levels andpricingfor your Widget facility?(Points : 30)