|Perfect Number of Pages to Order||5-10 Pages|
Management Principles of Conducting an Environmental Analysis
Assessment 1 Conduct an Environmental Analysis
Assessment This assessment activity requires you to undertake an external and
Description internal environmental analysis of a significant business organization approved by the course facilitator. In order to successfully complete this assessment activity, you are required to address each of the following specific requirements:
Weighting 20% of the total marks allocated for this module of study.
Strayer University ECO 550 Assignment 2
Using the regression results and other computations from Assignment 1, determine the market structure in which the low-calorie food company now operates.
Use the Internet to research two (2) of the leading competitors in the low-calorie microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within the industry (worldwide).
Write a six to eight (6-8) page paper in which you:
Total Cost: TC = 160,000,000 – 115.56Q + 0.01111Q2
Variable Cost: VC = – 115.56Q + 0.01111Q2
Marginal Cost: MC = -115.56 + 0.02222Q
Remember that to be profitable, the product’s price (P) must be greater than its average total cost (ATC) at the optimal level of output (Q).
Total Revenue: TR = (P*Q) = 21,100 Q – 0.10 Q2
Marginal Revenue: MR =(dTR/dQ) = 21,100 – 0.20 Q
Hint: Use the profit maximization rule MR = MC to determine your optimal price and optimal output level now that you have market power. Compare these values with the values you generated in Assignment 1. Is your price higher or lower? What about the quantity?
(a)Calculate profit in the short run by using the price and output levels you generated in part 6. [Optional: You may want to compare this to what profit would have been in Assignment 1 using the cost function provided here].
(b) Calculate profit in the long run by using the output level you generated in part 3 and assuming that the selling environment will likely be very competitive. (Why would this be a valid assumption?) Remember that increasing competition in the long run drives the market price (P) down until it is equal to minimum ATC in the industry.