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# [Solved] Assignment 219372

Assignment Details

Subject: Economics    / Accounting
Question
ECON545 Paper Project 1The Microeconomic Paper tests your ability to apply economic principles to a business decision. Select
one situation from the items outlined below: A to D. Complete the paper on the selected situation as
specified below. The completed paper is a professional report and is due in Week 3 (130 points). See the
grading rubric at the end of this document. For sources of data, you can choose from the list presented
at the end of this document.
The following is a list of the specific required information, research, graphs, and math to be included in
each answer regardless of the scenario chosen.
1. Demand Determinants:
a. Each individual determinant analyzed for your situation, with examples applicable to
your situation (3 points each) and research (2 points each) showing current demand
data or most recent past data, except for the expectations determinant in which you
need to use data estimating future market conditions.
b. (10 points) Price Elasticity of Demand facing you in your scenario, including actual
calculation of it using the midpoint formula. If you can’t find data, then determine the
price elasticity from the characteristics and make up numbers to use. Be sure to
identify this if you use this approach. This will help you in deciding the slope of your
demand curve below.
c. (5 points) Graph the demand facing your situation. Note that this requires information
from the supply determinant analysis before deciding how to draw the curve(s), as
you may need a separate MR curve.
2. Supply Determinants:
a. Each individual determinant analyzed for your situation, with examples applicable to
your situation (3 points each) and research (2 points each) showing current supply
data or most recent past data, except for the expectations determinant in which you
need to use data estimating future market conditions.
i. (20 points) You need to be very specific in the cost of production determinant
to identify fixed, variable, and marginal cost in order to derive your supply
curve for the graphing component. You will need to explain and show how
profit maximization or loss minimization output and price are determined. You
will need to do the math using actual figures [cited] or your own estimated
ECON545 Paper Project 1 Page 1 of 6 figures [identified as such] and explain why you expect short run economic or
normal profits, acceptable loss or temporary shutdown, and how you will
know which it is.
ii. The number of sellers determinant must contain your analysis of the kind of
market structure in which your firm or labor service will be sold.
b. (10 points) Price Elasticity of Supply you have based on the cost of production changes
as output changes, including actual calculation of it using the midpoint formula. If you
can’t find data, then determine the price elasticity from the characteristics and make
up numbers to use. Be sure to identify this if you use this approach. This will help you
in deciding the slope of your supply curve.
c. (5 points) Graph your supply situation using the numbers from your earlier cost of
production analysis.
4. Paper presentation—(10 points) good format, citations, lack of spelling errors, etc. Situation A
Jenny, your niece, is a smart high-school student who wants to make smart choices for her future.
become a medical doctor and on the best location to practice it. She recognizes the high costs of tuition
and the years of study involved in becoming a doctor. She wants to evaluate if that career choice is an
Having read the introduction to Chapter 1 on page 3 of the textbook, you recognize the significance of
such a career decision for Jenny. You decide to examine the career choice in terms of the utility it
provides to Jenny: return on investment as well as personal satisfaction of contributing to the well-being
of others. But to evaluate the utility, you also need to identify and quantify the total opportunity costs of
the decision. You decide to educate yourself about the market for physicians in terms of supply and
demand, elasticity, costs of production, pricing, and normal profit. You want to provide Jenny with the
most informed advice possible. Situation B
Your neighbor Cindy wants to start a contracting business for installing solar panels. She has heard of the
cost savings that households and businesses can make each year from installing solar panels on the
roofs. Cindy has also heard of government incentives for installing solar panels. Being concerned about
the environment and wishing to reduce pollution, Cindy thinks installing solar panels also serves a social
ECON545 Paper Project 1 Page 2 of 6 purpose. But she does not want to risk her life’s savings on a venture that might not succeed or become
profitable enough. After hearing from you about taking this course in Business Economics, she decides to
At first you were hesitant to give investment advice. Then you read the section “Losing Money in the
Solar Panel Industry” on pages 402-403 of the textbook, and the need for differentiation in Chapter 13.
You realize there are more pieces to the decision than Cindy is considering. You decide to research the
market in terms of supply and demand, elasticity, costs of production, pricing, normal profit, and savings
for consumers. You want to provide Cindy with the most informed advice possible Situation C
Cousin Edgar is always thinking of the next business idea. This time, he plans to invest in buying two gas
stations. He reckons American consumers have come to accept the high gasoline prices, and estimates
world prices for gasoline will increase even further due to increasing high demand from India and China.
Besides, Cousin Edgar thinks he will make a good profit on the sale of convenience items at each station.
You recall reading about making pricing decisions for gasoline on pages 173-174 of the textbook. You
also recall reading about perfectly competitive markets in Chapter 12, and the need for differentiation in
Chapter 13. Being skeptical of Cousin Edgar’s optimism on the profitability of selling gasoline and
convenience items, you decide to research the market in terms of supply and demand, elasticity, costs of
production, pricing, and normal profit. You want to provide Cousin Edgar with the most informed advice
possible. Situation D
asking for advice on opening a restaurant. Your friend Rajeev reminded you of his popular recipes for
Indian food, and shared his dream of building a franchise business modeled on the P.F. Chang chain of
restaurants. He reckons that creating special fusion recipes based on a popular ethnic cuisine will provide
the restaurant chain with sufficient differentiation to become profitable and to grow nationwide.
Luckily before you could find time to answer Rajeev’s email, you read the pieces on Starbucks and
opening a restaurant, on page 425 of the textbook. Recognizing the costs and risks for Rajeev, you decide
ECON545 Paper Project 1 Page 3 of 6 to research the market in terms of supply and demand, elasticity, production costs, pricing, normal
profit, and the supply chain for ethnic cuisine. You decide to educate yourself about the restaurant
business so you can provide Rajeev with the most informed advice possible.
Microeconomic Paper as a Professional Report
Your paper should be organized into five parts as listed below.
1. Title Page—Name, course, and date
2. Introduction to situation, but do NOT copy the scenario. Briefly summarize the situation and
identify the microeconomic issue(s) to be decided from the perspective of the organization.
3. Relevant Economic Principles: Determinants of Demand, Supply, etc. and Relevant Data
Identify the variables that are critical in addressing the issue(s). Gather and present the relevant data
on the variables by searching the DeVry Online Library. Ask a librarian for help if needed. Use in-text
citation to report the source(s) of the data. Graphs may be included here.
4. Recommendations and Economic Justification
Formulate and present your recommendations for addressing the issue(s) based on the relevant data
and economic principles identified above. Justify your recommendations in terms of the economic
impact on those affected.
5. References
List the full references for at least five sources alphabetically in APA format.
Section Points
earne
d Points Paper Presentation 10 Relevant Data:
Demand: 30 points 80 Supply: 50 points Description
Good format, citations, lack of spelling errors, etc.
Correct Title page and Reference pages
Demand Determinants and Research Data (15 points)
Price Elasticity of Demand (10 points)
Graph of Demand (5 points) Recommendations 40 Supply Determinants and Research Data (15 points + Profit
Max/Cost of Production Analysis = 20 points for total of 35
points)
Price Elasticity of Supply (10 points)
Supply graph (5 points)
What are your recommendations explained by your analysis? Total 130 A quality paper meets or exceeds these requirements ECON545 Paper Project 1 Page 4 of 6 Data Sources
1. DeVry Online Library: Data bases for related articles
Data bases for industry reports; IBISWorld in particular.
ProQuest Statistical Abstracts of U.S.:
http://library.devry.edu/pdfs/STATISTICAL_ABSTRACTS__US.pdf 2. Industry Associations Association of American Medical Colleges: https://www.aamc.org/
American Medical Association (AMA): http://www.ama- assn.org/ama
National Center for Health Statistics (NCHS): http://www.cdc.gov/nchs/
Solar Energy Industries Association: http://www.seia.org/
The Solar Foundation: http://www.thesolarfoundation.org/
The National Restaurant Association: http://www.restaurant.org/
NACS – The Association for Convenience &amp; Fuel Retailing:
http://www.nacsonline.com/Pages/default.aspx 3. Private Research Groups The Rand Corporation: http://www.rand.org/
University of Michigan: http://css.snre.umich.edu/; http://www.sca.isr.umich.edu/
The Conference Board: https://www.conference- board.org/data/bcicountry.cfm?cid=1
OECD: http://www.oecd.org/eco/economicoutlook.htm
IMF: http://www.imf.org/external/pubs/ft/weo/2015/01/ 4. U.S. Government Websites: Statistical Abstracts of U.S.:
https://catalog.data.gov/dataset/statistical-abstract-of-the-united- ECON545 states
National Renewable Energy Laboratory: http://www.nrel.gov/
National Center for Health Statistics: http://www.cdc.gov/nchs/
U.S. Department of Energy: http://www.energy.gov/
Paper Project 1
Page 5 of 6 Bureau of Labor Statistics: http://www.bls.gov/
Bureau of Economic Analysis: http://www.bea.gov/
Lawrence Berkeley National Laboratory (Berkeley Lab): https://www.lbl.gov/
U.S. Census Bureau: http://www.census.gov/;
http://www.census.gov/econ/bes/; http://www.census.gov/economic- indicators/
U.S. Department of Commerce: http://www.commerce.gov/;