Econ fin

MANAGERIAL AND BUSINESS ECONOMICS - A3 (Template Version)

Summarize the purpose of your report. Outline the methodology employed in your analysis and your key findings Example: Analyze consumer survey data Apply Hotelling competition model Provide recommendations for [COMPANY X] Brief introduction about the company and the industry. Company: History, size, business model, competitors Industry: Growth rate, industry value, etc. Discussion recaps key findings and connections to course concepts (2 sentences) Recommendations provide specific strategies based on analysis (2 sentences) Conclusion restates major points and takeaways (1-2 sentences)

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DETAILED INSTRUCTION

A/ ASSIGNMENT RECAP

  • Prepare a 15-minute presentation analyze consumer behavior and competition in a particular industry, incorporating data analysis and economic models like Hotelling, to provide recommendations for a company

 

Suggested Structure:

  1. Introduction (Suggested 1 slide) 

  2. Analysis

A. Consumers’ preferences (Suggested 7-8 slides) 

  1.  Factor Identification

  2.  Data Analysis

B. Hotelling competition  (Suggested 11-12 slides) 

C: Guest Lecture  (Suggested 11-12 slides) 

  1. Discussion and Recommendation (Suggested 15-16 slides) 

  2. Conclusion (Suggested 1 slide) 



B/ KEYWORD EXPLANATIONS

  1. Best response function

In game theory and competition models, a firm's best-response function gives its profit-maximizing output level in response to competitors' outputs. It incorporates strategic interdependence.

  1. Nash equilibrium 

In game theory, a Nash equilibrium is an outcome where each player's strategy is optimal given the strategies of all other players. No player has an incentive to unilaterally deviate.

  1. Equilibrium price

The equilibrium price is the market price established through supply and demand interactions. At the equilibrium price, the quantity demanded by consumers equals the quantity supplied by firms.

  1. Equilibrium profits

Equilibrium profits are the maximum economic profit a firm earns by optimizing output where marginal revenue equals marginal cost. Equilibrium profits depend on market structure - more competitive markets drive them toward zero while less competitive markets allow sustained positive profits.

  1. Marginal Cost

Marginal cost is the additional cost incurred to produce one extra unit of output. Firms maximize profit where marginal revenue (extra revenue from selling another unit) equals the marginal cost of producing that unit.

  D/ DETAILED OUTLINE 

  1. Section 1: Introduction

  • Summarize the purpose of your report. 

  • Outline the methodology employed in your analysis and your key findings

Example:

  • Analyze consumer survey data

  • Apply Hotelling competition model

  • Provide recommendations for [COMPANY X]

  • Brief introduction about the company and the industry.

    • Company: History, size, business model, competitors

    • Industry: Growth rate, industry value, etc.

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