FOR RASWRITER ONLY: ECONOMICS ASSIGNMENT FOR TLNTEW.
Assignment 2: Operations Decision > Due Week 6 and worth 300 points > > Using the regression results and the other computations from Assignment 1, > > determine the market structure in which this frozen, low-calorie > microwavable > food company now operates. > [In assignment #1, the company estimated a demand curve and used a marginal > > cost curve as its supply curve. You determined the equilibrium in the market > > where P =MC [or Qs = Qd]. You calculated the various elasticities using the > > estimated demand at its current price of 500 cents. While not required, if > you > look at the own price elasticity at the equilibrium price and quantity > solved > for in Assignment #1 you will notice a problem for the firm if it thinks it > is > operating in a competitive market. > Now that you know that the firm faces a downward sloping demand curve and > that > it has pricing power, you are being asked to rethink how the firm should > behave > in the market as it actually used its pricing power to determine the profit > > maximizing price and output in this assignment. > Use the Internet to research two (2) leading competitors in the low-calorie > > microwavable food industry, and take note of their pricing strategies, > profitability, and their relationships within this industry (within the USA > and > worldwide). Use the IBIS Report for the Frozen Food Production Industry (SIC > > Code 31141) to be provided by your instructor. > > Write a six to eight (6-8) page paper in which you: > 1. Outline a plan that will assess the impact of the market structure/cost > data > based on the activity in the first assignment for the company’s operations. > Use > a supply curve of the following form to reexamine your conclusions from the > > first assignment: Qs = -7909.89 +79.0989P [OR MC = 100 + 0.01264Q]. This new > > supply curve gives you the same equilibrium price and quantity as before, > but is > based on the firm’s marginal cost curve and its behavior in Assignment #1. > Further assume that the estimate of the firm’s AVC = 100 + 0.009Q and that > VC/TC > =0.71 always [implying that FC/TC = 0.289]. These are the industry average > estimates from the IBIS report for this industry. > 2. Suppose the business operations have now changed from the market > structure > analyzed in the activities required for the first assignment due to this new > > data about costs. Determine two (2) likely factors that might have caused > the > changed behavior. Predict the primary manner in which this change would > likely > impact business decisions in the new market environment. > 3. Analyze the major short-run and long-run production and cost functions > implied by this new cost data for the frozen, low-calorie microwaveable food > > company. Use the information contained in the IBIS report. Suggest > substantive > ways in which the frozen, low-calorie food company may use this information > in > order to make decisions in both the short-run and the long run. > 4. Determine the possible circumstances under which the company should > discontinue operations. While no specific fixed or total cost data are > provided, > use the newly provided cost data above and your knowledge from the textbook > on > the relation of fixed and variable costs to revenue to develop estimates > that > might suggest key actions that management should take in order to confront > these > circumstances. Provide a rationale for your response. > 5. Suggest one (1) pricing policy that will enable your frozen, low-calorie > > microwavable food company to maximize profits. Provide a rationale for your > > suggestion that will involve comparison of the first assignments two > possible > price and quantity pairs with the new optimum presented here in Assignment > #2 > 6. Outline a plan, [based on the original information provided in the first > > assignment along with the IBIS report industry cost data for the firm], that > the > company could use in order to evaluate its financial performance. Consider > all > the key drivers of performance, such as company profit or loss for both the > > short term and long term, and the fundamental manner in which each factor > influences managerial decisions. > 7. Recommend two (2) actions that the company could take in order to improve > its > profitability and deliver more value to its stakeholders in line with the > recent > history and forecast future behavior for the Frozen Food Production Industry > > [SIC Code 31141] as outlined in the IBIS report. Outline, in brief, a plan > to > implement your recommendations. > 8. Use at least five (5) quality academic resources in this assignment. > Note: > Wikipedia does not qualify as an academic resource. > > Your assignment must follow these formatting requirements: > * Be typed, double spaced, using Times New Roman font (size 12), with > one-inch > margins on all sides; citations and references must follow APA or > school-specific format. Check with your professor for any additional > instructions. > * Include a cover page containing the title of the assignment, the student’s > > name, the professor’s name, the course title, and the date. The cover page > and > the reference page are not included in the required assignment page length.
FOR RASWRITER ONLY: ECONOMICS ASSIGNMENT FOR TLNTEW
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