Reference no: EM132400150
Project -
What we have learnt theoretically would be more interesting and useful if applied to a certain project. To do so, you pick up a business idea (business project) of your own and apply what we have learnt and discussed during the course "Introduction to Economics-Part 1: Microeconomics" based on the requirements and guidelines provided below:
FIRST: Identify clearly your business (project) idea, objectives, and nature. (250-500 words).
SECOND: Apply the opportunity cost concept (showing explicit and implicit cost) to five strategic decisions you may make in your project. Economic and accounting profit should be computed, whenever applicable. (Approximately 600 words).
THIRD: To check for the knowledge gained from PPF as a tool to show the efficient allocation of resources, suppose your project produces only two products (two goods, two services, or one good and one service). Show the trade-off between the production of these two products under the condition of scarce resources, bearing in mind that the production process should be efficient. (Approximately, 250 words + PPF graph)
FOURTH: As a manager of the project, discuss the effects of the consumers' behavior (choice) on the sales of your products if:
1. A value-added tax (sales tax) of 10 % is imposed by government on product X you produce.
2. You plan to increase the price of your product X by 15 %. (Approximately, 350 words).
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