Assignment:
Create a six to eight (6-8) page paper in which you:
Outline a plan that will assess the effectiveness of the market structure for the company's operations was perfectly competitive and that the equilibrium price was to be determined by setting QD equal to QS. You are now aware of recent changes in the selling environment that suggest an imperfectly competitive market where your firm now has substantial market power in setting its own "optimal" price.
Given that business operations have changed from the market structure specified in the original scenario. Determine two (2) likely factors that might have caused the change. Predict the primary manner in which this change would likely impact business operations in the new market environment.
Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the cost functions below. Suggest substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long-run.
TC = 160,000,000 + 100Q + 0.0063212Q2
VC = 100Q + 0.0063212Q2
MC= 100 + 0.0126424Q
Determine the possible circumstances under which the company should discontinue operations. Suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response.
Suggest one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits. Provide a rationale for your suggestion.
You determined your firm's market demand equation. Now you need to find the inverse demand equation. Having found that, find the Total Revenue function for your firm (TR is P x Q). From your firm's Total Revenue function, then find your Marginal Revenue (MR) function.
Use the profit maximization rule MR = MC to determine your optimal price and optimal output level now that you have market power.
Outline a plan, based on the information provided in the scenario, which the company could use in order to evaluate its financial performance. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.
Calculate profit in the short run by using the price and output levels you generated in.
Calculate profit in the long run by using the output level you generated i and cost data in and assuming that the selling environment will likely be very competitive. Determine why this would be a valid assumption.
Recommend two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders.
Outline, in brief, a plan to implement your recommendations.
Use at least five (5) quality academic resources
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format.
Include a cover page containing the title of the assignment. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes are:
Analyze short-run and long-run production and cost functions.
Apply macroeconomic concepts to changes in global and national economies and how they affect economic growth, inflation, interest rates, and wage rates.
Evaluate the profit-maximizing price and output level for given operating costs for monopolies and firms in competitive industries.
Use technology and information resources to research issues in managerial economics and globalization.
Write clearly and concisely about managerial economics and globalization using proper writing mechanics.