Homework: Applying Economic Concepts
In this homework, you will reflect on what you have learned in this course and have an opportunity to tie together many of the concepts and apply them to a real-world company. The objectives of this homework are to (i) gain practice applying microeconomic theory, (ii) become familiar with sources of economic of market information, and (iii) present various economic concepts and apply to a firm. You will answer the following questions based on a company that you have identified. (It is important to pick a company that has relevant data that is easy to access. In addition, I'm leaving the company choice up to you, but my recommendation is that you don't choose a large company that has a hand in many industries (ex: Apple, Amazon, General Electric). Rather, the concepts are often easier to apply if you choose a company that is primarily focused on one key industry (ex: Ford Motor Company, Draft Kings, Starbucks)). Your submission should be an 8 to 12 pages paper. You should use subheadings for each of the areas below to make it very easy for the reader to understand each of your points.
Your paper should include the following for your chosen company:
o Identify the company by name and location
o Identify the firm's primary industry
o Describe the firm's customers (households, businesses, schools, governments, etc...)
o Explain the major determinants of demand for the firm's primary product(s) or service(s)
o Does the firm face elastic or inelastic demand with respect to its primary product(s) or service(s)? Why? Be sure to include a discussion of the key factors affecting the price elasticity of demand.
o How would you describe the market structure of the industry in which your firm operates? You should address the key characteristics of that market structure, and how those characteristics pertain to your company. Make sure that you pick the correct market structure and are able to relate the market characteristics. Does the firm have pricing power? Why or why not?
o Calculate the company's sales and profit growth rates for the past three years. Do the same for the firm's key rivals. Have the firm's growth rates matched its rivals? Summarize the company's performance relative to its rivals. Provide some insight into the results you found.
Format your homework according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.