Reference no: EM131153959
Assignment
Price, Profits, and Competition
You may be aware that there are three types of profit: accounting profit, economic profit, and normal profit. The difference between the total revenue and the sum of the explicit and implicit costs of an organization results in economic profit. It is commonly assumed that every firm's goal is to maximize its profit, and the economic theory of business is built on this underlying assumption.
Submit a 300- to 700-word paper that addresses the following:
Describe the economic principles that company executives should consider when developing a strategy or strategies that will maximize profits while minimizing incentives for competitors to develop competing products. Explain why each of these economic principles is important to the company's strategy. Recommend and justify a strategy that you believe will maximize profits while minimizing incentives for increased competition.
Assignments must bein APA style and format. Information on APA style is available from theWalden Writing Center.
Learning Resources
Required Resources
Readings
• Frank, R. H., & Bernanke, B. S. (2010). Principles of microeconomics, brief edition(2nd ed.). New York, NY: McGraw-Hill/Irwin.
o Chapter 5, "Perfectly Competitive Supply" (pp. 127-158)
Chapter 5 gives you insight into the supply side of the market. The chapter also revisits the cost-benefit principle from the seller's perspective and examines the factors that a rational seller would consider while marketing a product.
Focus on the graphic interpretations of individual and market supply curves. Review the law of supply, and study the various determinants of supply.
o Chapter 6, "Efficiency, Exchange, and the Invisible Hand in Action" (pp. 159-188)
Chapter 6 introduces the concept of the Pareto efficiency of market equilibrium. The chapter also explains how market equilibrium prices can help in attaining the largest possible total economic surplus. In addition, this chapter focuses on the central role of economic profit and the invisible hand theory of the market.
Focus on the cost of preventing price adjustments and the marginal cost pricing of public services. In addition, study the different graphic interpretations of economic surplus.
Media
• Kahn Academy. (2014d). Economic profit versus accounting profit [Video file]. Retrieved fromhttps://www.khanacademy.org/economics-finance-domain/microeconomics/firm-economic-profit/economic-profit-tutorial/v/economic-profit-vs-accounting-profit
Note: The approximate length of this media piece is 8 minutes.
• Kahn Academy. (2014j). Marginal cost and average total cost [Video file]. Retrieved fromhttps://www.khanacademy.org/economics-finance-domain/microeconomics/firm-economic-profit/average-costs-margin-rev/v/marginal-cost-and-average-total-cost
Note: The approximate length of this media piece is 8 minutes .
• Kahn Academy. (2014f). Fixed, variable, and marginal cost [Video file]. Retrieved fromhttps://www.khanacademy.org/economics-finance-domain/microeconomics/firm-economic-profit/average-costs-tutorial/v/fixed--variable--and-marginal-cost
Note: The approximate length of this media piece is 12 minutes.
Optional Resources
• Frank, R. H., & Bernanke, B. S. (2011). Principles of microeconomics, brief edition (2nd ed.) [Supplemental material]. Retrieved from https://highered.mheducation.com/sites/0077316770/student_view0/index.html
|
Concept of collective sense-making processes
: Applying the concept of collective sense-making processes, analyze the Blue vs. Gray Case Study. What are the important sense-making processes that made the implementation of change challenging and difficult? What could have been done to prevent or b..
|
|
Specific demands associated with its external environment
: Describe the linkage an Internet-based company (e.g. Ebay) has with its environment. Be sure to include in your description an overview of the firm's structure and operations in response to specific demands associated with its external environment.
|
|
What output strategies might us companies implement
: What output strategies might U.S. companies implement to remain profitable when competing with international companies? How do market demand, costs, pricing, and competition impact these output strategies?
|
|
Calculate the cpk value
: Big Turkey Burger Farms (BTBF) produces a large turkey burger that is world famous. This burger is known not only for its quality, but also its size and consistency. They produce a turkey burger that on average is 12.10 ounces large (with a standard ..
|
|
Describe economic principle that company executives consider
: Describe the economic principles that company executives should consider when developing a strategy or strategies that will maximize profits while minimizing incentives for competitors to develop competing products
|
|
Set of ordered pairs
: Write, as a set of ordered pairs, a function f that is a bijection from V1 to V2, satisfying the following condition: if x and y are elements in V1 such that {x,y} is in E1, then f(x) and f(y) are elements in V2 such that {f(x),f(y)} is in E2, and..
|
|
Most of what is written about leadership
: Most of what is written about leadership has been written by western scholars and practitioners—mostly from the United States. Thus, what we have studied in this module so far reflects western assumptions and values about how to improve leadership pe..
|
|
Draw a block diagram of how this device might work
: Based on this brief description of the Head Master, draw a block diagram of how this device might work and the basic components that might be needed in the Head Master. Include in your block diagram the ultrasonic signal source, detectors, timers,..
|
|
Calculate the es ef ls and lf times and the slack
: Calculate the ES, EF, LS, and LF times and the slack for each activity- identify the critical path for the project.- an the project be completed in 40 weeks?
|