Create a report analyzing the microeconomic factors of your selectedcompany. Your economic analysis report should be formatted using thetemplate provided in the What to Submit section below.
You are expected to reference any source material used in your reportwith appropriate citations. You can also use your textbook to supportyour claims. To support you, a References page has been added to theproject template with a citation for this courses textbook alreadyprovided. Any other references you add should be cited according to APAformat.
Specifically, the following sections must be included in your report:
- Introduction: Provide a brief description of yourselected firm, including what products or services they provide and whyyou chose this company. Remember that if you choose a company notincluded in the list above, you need to secure approval from yourinstructor first.
- Comparative Advantage and Specialization: Identify the advantages of specializationfor your firm. Provide specific examples of your companys tradingpartners to illustrate. You can also include additional evidence fromyour textbook, such as graphs illustrating the benefits ofspecialization.
- Price Elasticity
- Identify the determinants of price elasticity of demand for your selected company. Provide examples from your research to illustrate.
- Explain how price elasticity of demand affects pricing decisions and total revenue of your selected firm. Provide examples from your research to illustrate.
- Government Policies and Price Equilibrium
- Evaluate the potential impacts of policy interventions on the supply and demand equilibrium for a product or service sold by your selected company. Provide examples from your research or from the textbook.
- Explain how government policy interventions can cause changes in consumer and producer surplus for your firm. Provide examples from your research or from the textbook to illustrate.
- Costs of Production and Decision Making
- Describe the difference between variable costs and fixed costs.
- Identify several of the fixed costs and variable costs that apply to your company. You can find this information in the companys financial reports.
- Explain how a company makes the decision to produce, shut down in the short term, or exit the market based on these cost considerations. Provide examples from the textbook to illustrate.
- Market Structures
- Identify the differences between the four market structures and how they impact profitability by addressing the following questions:
- Which markets have barriers to entry and exit?
- How are the market types profitable in the short and long run?
- How is the profit-maximizing quantity determined in each market type?
- How is the price determined in each market type? Are the firms price takers or price makers?
- Identify the type of market structure in which your company competes. Defend your claim by demonstrating the features of that market structure.
- Explain how inefficiencies arise from monopolies and monopolistic competition. Provide examples from the textbook to illustrate.
- Analyze how firms in an oligopolistic market set prices. Provide examples from the textbook to illustrate.
- Identify the differences between the four market structures and how they impact profitability by addressing the following questions:
- Microeconomics Principles and Business Decisions:Conclude by describing the relevance and significance of microeconomicsprinciples. Explain how microeconomic trends could impact the companysfuture business decisions. Defend your claims with specific evidence.
