Reference no: EM133063390
Please read the below short paper assignment instructions. You can also download the below assignment as a pdf file at the end of the assignment instructions. This second part of Exam 3 is due on Monday, November 15, 2021, at 11:59 pm at the latest. Please upload your short paper as a word or pdf file per the below formatting and file naming instructions. Please upload the file by clicking on reply at the bottom left and then clicking on attach. Thank you!
Prof. Aryani
SHORT PAPER
EMPIRICAL AND QUANTITATIVE ANALYSIS IN PROFIT ANALYSIS
BACKGROUND:
All students in Principles of Microeconomics classes at Collin College in the Fall 2021 semester are required to complete a short paper evaluating their empirical and quantitative skills according to the State of Texas core objectives on empirical and quantitative skills. This is a mandatory Collin College paper assignment designed and administered through the Economics Department. The Texas Higher Education Coordinating Board has defined the criteria of the core objective of "Empirical and Quantitative Analysis" as "manipulation of numerical data or observable facts", "analysis of numerical data or observable facts", and "informed conclusions". These three criteria are defined below and are the ones used for the assessment of your paper.
- Manipulation of numerical data or observable facts: You must organize numerical data or observable facts in a way that prepares the data for analysis in order for you to gain an in-depth understanding.
- Analysis of numerical data or observable facts: You must examine numerical data or observable facts through methodical analysis in order to gain an in-depth understanding.
- Informed conclusions: You must synthesize findings drawn from analysis of numerical data or observable facts in order to show an in-depth understanding.
INSTRUCTIONS:
Exam 3, Part 2 is based on a short paper. You are given a prompt information about a computer company below followed by eight exam questions (part a to h). Please write up your answers to the below presented exam questions in a minimum of 2 pages and a maximum of 4 pages including any potential references. Please rewrite the exam questions before your answers. Please make sure you follow the instructions and respond fully to the questions so that you have good coverage of each of the three core objectives in your paper. Please format the writing part of your paper double spaced, size 12 type, Times Roman font, with 1-inch margins at the top, sides, and bottom of each page. Please do not add a cover page. Your name, your Collin College CWID number, and your Econ 2302 _ _ _ course section number should be centered at the top of your first page. 5 points are for following the instructions. If you do not follow these instructions, 5 points will be deducted.
The paper is due on Monday, November 15, 2021, at 11:59 pm. Please submit/upload your paper as an electronic file (word file or pdf file). Please save the file with this naming protocol: Your last name-Your first name-Collin College ID-Econ2302.
This short paper is worth 50 points under the Exam category. You will achieve a good grade for demonstrating:
1. Correct findings
2. Meeting the core objectives
3. Complete report
4. Following the instructions
5. Complete citations
6. Correct spelling and good use of grammar.
INFORMATION:
Assume that EasyComp, a computer company operating in a perfectly competitive market structure, produces affordable, easy-to-use home computer systems. EasyComp has fixed costs of $250. EasyComp's marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $500 for the seventh. Please respond to the following questions below by drawing on the three criteria of the empirical and quantitative skills core objective.
a) Please fill in the missing cost values in the table below by drawing on the above given information and by rounding your calculations to the nearest whole number where you round numbers of 0.5 and above up and numbers of 0.49 and below down. (criteria: manipulation of numerical data or observable facts)
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Q
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TC
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ATC
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TVC
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AVC
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MC
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(Total Cost)
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(Average total cost)
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(Total variable cost)
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(Average variable cost)
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(Marginal cost)
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0
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1
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2
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3
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4
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5
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6
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7
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b) Please state first at what price the break-even point would be and then briefly describe how you found the break-even point based on values above. (criteria: analysis of numerical data or observable facts)
c) Please state first at what price the shutdown point would be and then briefly describe how you found the shutdown point based on the values above. (criteria: analysis of numerical data or observable facts)
d) If EasyComp sells the computers for $500, please state whether EasyComp is making a profit or a loss? Next, please describe how large the profit or loss is and show your analysis. (criteria: analysis of numerical data or observable facts)
e) Sketch a graph with MR, MC, and ATC curves to illustrate your answer and show the profit or loss. (criteria: manipulation of numerical data or observable facts)
f) Would you advise EasyComp to stay in business or shut down the business based on the shown profit or loss? Please justify your conclusion! (criteria: informed conclusion)
g) Based on the knowledge gained from the above analysis, what must any future computer company that wants to enter this perfectly competitive market make sure it can do in order to be profitable? (criteria: informed conclusion)
h) If the market structure were to change from perfect competition to monopolistic competition, what would the now monopolistically competitive computer company EasyComp have to do in order to become more profitable compared to its peer computer companies? (criteria: informed conclusion)