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Microeconomics Essay Topics & Paper Examples

The amount of profit

In business there are certain factors that have to be evaluated before a company can see if a profit has been made. To even get to the point where a profit will be made there has to be a product that is sold whether it is a tangible or an intangible product. There has to be something that the business is selling in order to make that profit. The amount of profit that is attained is the outcome of the total revenue minus the total cost. This will then show the business what the remaining profit is. Business is like a puzzle, all the pieces have to fit and work together to have the puzzle complete. In business things have…

Factors That Shift the Ppc

In economics, the Production Possibility Curve (PPC) is based under the field of macroeconomics. The production possibility curve (PPC) is also termed as the production possibility frontier (PPF), a production possibility boundary or sometimes called product transformation curve. It is defined as a curve that illustrates the possibility of producing two goods or services within a specified time with all the resources given such as (labour, land, capital and the technical knowledge). As we can see, here is an example of how the (PPC) looks like, a graph that compares between the productions rates of thetwo goods or services by mapping the production of one good on the x-axis and the production of the other good on the y-axis. It…

Supply and Demand

Chapter 3—Supply and Demand Question 1. Draw a demand curve with an equilibrium price and quantity, show what happens on your diagram when each of the following events occurs. Explain whether each of the following events represents a (i) shift of the demand curve or (ii) a movement along the demand curve. (a) A store owner finds that customers are willing to pay more for umbrellas on rainy days (b) When XYZ Telecom, a long-distance telephone service provider, offered reduced prices for its services on weekends, the volume of weekend calling increased sharply. Question 2. The following table represents the demand and supply for orchids (a type of flower). Plot the curves on the diagram below a) Graph both the…

Individual Paper

As discussed in week 1; understanding market equilibrium and how to maintain market equilibrium is essential for all business leaders. Market equilibrium is the point at which the demand of the consumers is equal to the supply of the producers. The goal of all organizations is to ensure their output is at market equilibrium, therefore having no surplus or shortage. However, many factors can affect a both demand and supply of a product. This paper will look at the factors which have caused a shortage of bacon and thus changed the market equilibrium. The law of demand states, that all other things being equal, as price falls the quantity demanded rises, and as price rises, the quantity demanded falls. Concurrently,…

The Marketing Aspect

The Marketing Aspect is said to be the lifeblood of all feasibility studies. It makes a big impact on the study because it serves as the basis for the proponents to have a clear picture whether to pursue the business or not. It will determine the factors to be considered in establishing and coming up with the business as well as the financial basis through the projected demand. This chapter seeks to determine the opportunities and threats, the target market, the total demand and supply of the product, the competition and the marketing program which refers to the product, price, place and promotional strategies. Objectives of the Marketing Aspect: 1. To identify the opportunities and threats of Camias bleach in…

Econ Problem Set

1) Describe the effects on output and welfare if the government regulates a monopoly so that it may not charge a price above p, which lies between the unregulated monopoly price and the optimally regulate price (determined by the intersection of the firm’s marginal cost and the market demand curve). As usual, the monopoly determines its optimal output on the basis of MR = MC. Here, however, it cannot charge a price in excess of p*. So, for any output less than Q(p*) (where Q(p) is the demand function) its marginal revenue is p*. On the graph below that gives: pm p* MR MC Demand q m q * 2) The inverse demand curve a monopoly faces is p=10Q-1/2. The…

Microeconomics about Fresh Water Supply

Scarcity of fresh water is emerging as the most critical resource issue which world is facing in recent years. The signs of a shrinking water supply can be seen worldwide. Many restaurants no longer provide a free glass of water to diners and cities restrict its use for private pools and gardens. The supply of fresh water is limited, but with the increase in population, the demand of water increases rapidly. We use water faster from our resources than it can be replaced. This paper will discuss the issues regarding fresh water supply in the future with the already shrinking resources and fast growing world population, pollution of major water resources, impact of climate changes and longer drought seasons etc….

Cumberland Metal Industries

I.BACKGROUND CMI has developed a new technology using curled metal to create pile driving pads. Compared to existing products on the market, these pad offer several benefits: •Faster pile driving saves contractors rental fees, labor expense , and spreads overhead over more feet driven in a given period of time •Longer life of pads save contractors additional cost in reducing changeover time •Heat resistance further reduces changeover time, saving additional expenses •Safety – CMI pads do not expose workers to the extreme heat and carcinogens that asbestos does II.MARKET AND CUSTOMER Total pile feet driven is assumed to be between 290-390 million feet annually given the number of hammers in existence and assuming hammers drive at an average rate of…

Price Elasticity to Identify a Brand’s Competitors

Firms today are in their perspective industries to maximize consumer satisfaction, increase revenue, and shareholders profits. These tasks require attention to detail when pricing their products. There are always competitors lurking and waiting by the wayside to gain market share and a competitive advantage. When identifying brands competitors, price elasticity is a major determinant. Demand for a product or service constitutes what the company’s price will be and whether the price will be higher or lower than the competitor’s price. In terms of the elasticity, price increases may decrease demand and price decreases may increase demand. However, according to Kotler, The introduction or change of any price may initiate a response (favorable or unfavorable) from customers and competitors” (Kotler, P….

Economies of Scale

Definition Reduction in long-run average and marginal costs, due to increase in size of an operating unit (a factory or plant, for example). Economics of scale can be internal to a firm (cost reduction due to technological and management factors) or external (cost reduction due to the effect of technology in an industry). Diseconomies of scale Definition Increase in long-term average cost of production as the scale of operations increases beyond a certain level. This anomaly may be caused by factors such as (1) over-crowding where men and machines get in each other’s way, (2) greater wastage due to lack of coordination, or (3) a mismatch between the optimum outputs of different operations. | Economies and Diseconomies of Scale| In…

Microeconomics and the Law of Supply and Demand

During the simulation of Goodlife Inc. I was able to see how the effects of a lower rent verses a higher rent had on the vacancy percentage. In our simulation the town of Atlantis had only one rental agency with apartments available. There were single family homes available too but the need for renting was with apartments. I got to see how the supply and demand worked with this rental property simulation. The town of Atlantis saw a rise in population which led to a higher demand for vacant units. This caused Goodlife to raise its rent to meet the growing demand for its available units. But as the demand for renting the units fell so did the demand. This…

Market Equilibration in the Oil Industry

An understanding of the ways market equilibrium is attained after changes occur is critical for decision makers within any business. The elements of supply and demand are important economic principles and understanding the determinants are part and parcel in everyday decisions in a business. The process of equilibration is the movement between two equilibrium points and happens when changes occur in supply or demand. This paper will look at equilibration and explain the process of movements that occurs due to the behaviors of both consumers and suppliers. For this assignment, we will look at movement in the Oil Industry over the past year. Supply and Demand Economics is the science behind how individuals, institutions, and society make the best choices…

Learning Team Deliverable

This week we learned that industries consist of all firms making similar or identical products. Their market structure depends on the number of firms in the industry and the ways in which they compete. Our text discussed four basic market structures. The first market structure is perfect competition. Perfect competition occurs when numerous small firms are in competition with each other. Businesses in a competitive industry produce the socially optimal output level at the absolute minimal possible cost per unit. Another type of market structure is known as a monopoly. This is an easy enough concept to comprehend, but I went back and forth with a few classmates as to different examples of a monopoly. Technically, a monopoly is a…

Case Study: Orange Electronics Ltd.

After studying this case study, we end up in the next key points: Orange Ltd is a TV producer and needs a strategy in order to maintain its market share, given that the MNCs may work as threaten due to their global financial strength and network. As the TV market has been very volatile and the customers keep on choosing what to buy considering of price value and special features of the products, Orange Ltd has to overcome the challenge of bringing new products in a very short time to the market at attractively competitive prices. The process involved in the cabinet production, which is the component responsible for the delay of the new product release is now taking 18…

Market Equilibration Process Final Paper

A condition or state, which the economic forces are at a balance, characterizes Economic Equilibrium. This paper outlines the process of market equilibrium and the restoration factor of the invisible hand. The paper discusses the several factors and the relevant laws governing the market demand and market supply, overall market theory, and shortages/surpluses due to market shifts, demonstrated by the housing market of Cupertino, California. The market graphs presented in Appendix A, and the equilibration process is shown step-by-step via the four graphs. The supply and demand changes in the market, but the graphs show the inevitable equilibration process that result in a balance. Law of Demand and its Determinants The Law of Demand is the statement that customers will…

Economics – Puerto Rico

In this paper will identify, describe and production costs of the Company San Juan Cell Phones compares. In turn, the potential risks are identified in making management decisions. In addition, will analyze and assess what are the best ways to prevent negative consequences for the company. The term cost refers to the amount or representing a product or service according to investment in material, labor; training and time that you need to develop it. As you can see, the term is characteristic and central to economics as it is the point at which any part of trade or economic relationship between two parties. The cost is to be paid by those who want to receive a product or service to…

Market Equilibration Process Paper

The market equilibration process occurs when the market can reach and maintain a balance between the supply and demand. It also includes what manufacturers take in consideration of what can help lead their firms so they can maximize profits with units sold and match what consumers are willing to spend on an item. This will lead to market equilibration. With family, finances must have equilibration to maintain a good life. Prior to making major purchases or planning vacations, there are several options to consider. What should be done is assess the family finances. Each family need to account for all income during each pay period, then figure what they are going to pay as monthly expenses like rent, electricity, water,…

Managerial Economics

Q.1.0) For each of the following events, assume that either the supply curve or the demand curve (not both shifted). Explain which curve shifted and indicate the direction of the shift. a.From 1950 to 1979 the wages paid to fruit pickers increased while the number of fruit pickers employed decreased. b.During the same period the price of radio sets declined, while the number of radio sets purchased increased. c.Housing prices are rising but more houses are sold. d.Australian Airlines reduces its average plane fare by 30 percent in order to attract more customers. Ans. a) In this case the number of the fruit pickers has decreased while the wages of the fruit pickers has increased. Thus, the demand has not…

The factors, which affect demand

Demand is the quantity of goods or services consumers will buy at a particular price, at a particular time period. Market demand refers to the sum of individual demand for a good or service. It is assumed that the demand being represented is effective demand- the ability of consumers not just to want, but be able to buy the product. Quantity demanded is the inverse function of price, however there are other factors which influence the level of demand. Factors influencing individual demand differ from the factors influencing market demand. The price of other goods and services affects the demand for a product. If a product has close substitutes, then the responsiveness of demand to change in price is high….

The law of diminishing returns

The law of diminishing returns only applies in the Short Run, when only one factor of production is variable and can be increased. The other factors of production are fixed. Thus as the variable factor of production is increased the marginal product of that factor will rise at first, but will at some point begin to fall. Returns to scale can only occur when no factors of production are fixed. If the quantities of all of the factors of production are increased, then output will also increase. However, the amount by which output rises can either be proportionately more than the amount that the factors of production were increased by, proportionately less, or the same. These cases are called increasing…

The Importance For Price Elasticity of Demand

The Price Elasticity of Demand for goods indirectly dictates the function of today’s economy, it does this by using the wants and needs of the consumer and in-turn governs the prices for individual goods. Below, scenarios in which government or firm have to look at the PED are presented and how they react to create the best possible outcome they can achieve. Firms need to consider the elasticity of demand and, using this, determine the prices of a good; this is seen as a policy in firm’s cases. The firm needs to consider whether lowering the price will stimulate demand for the product, if so to what extent and whether the firm’s profits will also increase as a result. This…

Principles of Economics

Suggest how an economist would approach the problem of alcohol abuse. Economics is about scarcity and choice. It is assumed that all human beings are rational thinkers hence would always choose to consume products that would give them maximum satisfaction or utility. Mankiw (2011, p. 6) argues that rational people ‘systematically and purposefully do the best to achieve objectives given available opportunity.’ Given a choice among alternatives and with scarce resources, one would evaluate the benefits and costs of consuming an extra unit of a product and would only take a decision only if marginal benefit is greater than marginal cost. In this case, to solve the alcohol abuse problem, one has to consider marginal benefits and marginal costs derived…

Prestige Telephone Company

1.Identify the costs that are relevant to the analysis to discontinue Prestige Data Services: Relevant costs in the analysis by Prestige Telephone Company decision to discontinue Prestige Data Services include: fixed costs which must be absorbed by the parent company (Prestige Telephone) upon shutdown; outstanding Prestige Data Services debts; costs of retraining retained employees; costs associated with outsourcing data services previously provided by Prestige Data Services; opportunity cost of using space rented to Prestige Data Services; marketing costs attributed to acquiring additional Prestige Data Services customers; costs of increasing promotional activities of Prestige Data Services. In addition, Prestige Telephone Company should consider the qualitative cost of reduced employee morale which may result upon shutdown of Prestige Data Services. Maintenance costs…

Elwyn Company

In the Elwyn Company, the relationship between output (Q) and the number of hours of skilled labor (S) and unskilled labor (U) is Q 300S 200U – 0.2S2 – 0.3U2 The hourly wage of skilled labor is 10, and the hourly wage of unskilled labor is 5. The firm can hire as much labor as it wants at these wage rates. Elwyns chief engineer recommends that the firm hire 400 hours of skilled labor and 100 hours of unskilled labor. Evaluate this recommendation. If the Elwyn Company decides to spend a total of 5,000 on skilled and unskilled labor, how many hours of each type of labor should it hire If the price of a unit of output is 10…

Economics Terms and Health Care History

Introduction The healthcare economics have changed so much over the years. The changed was because of the evolutionary changes that happened in the United States which cause the dramatic change in the economics medical technology. One of the main reasons that moves all things are by health care economics is the money and the money help keeps an organization to established and be stable and it is the key to success. One way that the organization is using to help run the business is the cash flow system. It run the business and somehow help in making a decision in the future and also learning the healthcare economics. “Economics is the science that deals with the production, distribution, and consumption…

Microeconomics and the Laws of Supply and Demand Simulation

Based on Webpedia (2014), microeconomics is the interaction and behavior of individual components within an economic system. About the flip side, yet, he claims that macroeconomics examines the market as an aggregate. While microeconomics has a slim viewpoint of the market, macroeconomics examines the market from a wide standpoint. In the University of Phoenix simulation (n.d), for instance, Atlantis metropolis is a little and pleasant town with sufficient infrastructure, rendering it acceptable to custom. This is often considered as the macroeconomic view of the town because the investigation covers a wide spectrum. The simulation more signifies that there exists a low-traffic and hardly any pollution and low-crime rate. This confirms a more narrow outlook of the metropolis, looking at individual…

Economies and Balance Midterm Exam

1. Economies of Scope refers to situations where per unit costs are 2. For a short-run cost function which of the following statements is (are) not true? 3. According to the theory of cost, specialization in the use of variable resources in the short-run results initially in: 4. Economies of scale exist whenever long-run average costs: 5. The existence of diseconomies of scale (size) for the firm is hypothesized to result from: 6. If TC = 321 + 55Q – 5Q2, then average total cost at Q = 10 is: 7. Using demand and supply curves for the Japanese yen based on the $/¥ price for yen, an increase in US INFLATION RATES would 8. An appreciation of the U.S….

Market Equilibration Process paper

Glasses/Shades Sales In 2007, my business partner and I decided to get into the business of selling different types and brands of glasses. We purchased 1,000 glasses a month at about $4 a piece and the goal was to sell all the glasses every month. The price for these glasses started at $40 each. Based on our research on sites such as craigslist and ebay, we realized that the demand for shades was pretty high, in spite of this, our sales were very low. We experienced a big surplus since we had way more inventory than customers wanting to buy our glasses or more supply than demand. Surplus is the extent to which generation of goods, services and resources (such…

Business Proposal

Market Structure and Elasticity The elasticity depends on if in a year Google sells over one million and stays under the competitor price of $80 dollars by Belkin Miracast then it can fluctuates it price to $50 per Chromecast. The elasticity of demand is once a manager knows the marginal cost, they should then set the price over marginal cost. This is the profit that the product will produce. The industry for Chromecast is to allow people the choice to go beyond the monopolistic competitive market structure such as Comcast to a lesser monopolized substitution for cable: Chromecast. Pricing Strategy based on Market Factors Having a strategy for Chromecast will address the competition and the day to day operations. Using…

Price elasticity of demand (PED)

In other words, it is percentage change in quantity demanded by the percentage change in price of the same commodity. In economics and business studies, the price elasticity of demand is a measure of the sensitivity of quantity demanded to changes in price. It is measured as elasticity, that is, it measures the relationship as the ratio of percentage changes between quantity demanded of a good and changes in its price. In simpler words, demand for a product can be said to be very inelastic if consumers will pay almost any price for the product, and very elastic if consumers will only pay a certain price, or a narrow range of prices, for the product. Inelastic demand means a producer…