PICK A SMALL COMPANY (ICE-CREAM SHOP, RESTAURANT, BOOKSTORE, PARKING STRUCTURE OR …) AND WRITE A SHORT HISTORY ABOUT THE COMPANY, MAJOR PRODUCTS, AND LOCATION. DETERMINE THE FACTORS THAT WILL INFLUENCE DEMAND FOR THEIR PRODUCTS (BE SPECIFIC)
ECON 308 Paper Outline
Determine the factors that will influence supply of their products (be specific)
Pick one of their products and either calculate or speculate about the price elasticity of demand and the income elasticity of demand for that product. Justify your guess about how elastic the demand is with things you know about the product (for example, the demand for a product is likely to be very price elastic if there are many substitutes). Based on your estimate of price elasticity of demand what would you recommend as far as raising or lowering the price to enhance sales? (TR test).
Finally, identify some complements and substitutes for the product. How strong do you think the cross-price elasticities are likely to be? Based on what you have written, if you were selling this product, what measures, prices, or data would you try to keep track of if you wanted to predict how your sales might change over time?
Explain the nature of cost, fixed and variable, explicit and implicit and sunk cost for your business.
Calculate alternative measures of industry structure, conduct, and performance
Classify the type of business as competitive, monopolistic, oligopolistic or monopolistic competition. Explain your answer based on the characteristics of each market. As a manager which decision variables are relevant to make more profits for the firm?
Is there any particular pricing strategy being used by this Company? (Like price discrimination, bundling, coupons.)
Show how government regulations impact the prices and quantities of their products.
- Use 12 point Times New Roman font, double-space
- Approximately 2500 words in length
- Number your pages
- Use a creative title for your paper.