Category: Economics

Complete in time and correctly. Do not use too advanced function and knowledge.

Complete in time and correctly. Do not use too advanced function and knowledge.

In this assignment, you are to prepare a report analyzing the two problems below. Be sure to include your own interpretation and opinion as you prepare this report. You are the manager of a firm that receives revenues of $40,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is 1.5, and the cross-price elasticity of demand between product Y and X is 1.8 Going beyond a simple definition, explain what is meant by own price elasticity of demand. Going beyond a simple definition, explain what is meant by cross-price elasticity of demand. Explain why it is important for a business manager or owner to understand the two forms of elasticity. How much will your firm’s total revenues (revenues from both products) change if you increase the price of good X by 2 percent? Show your math. Mr. Abel owns a small chain of gasoline stations in a large Midwestern town. He read an article that said the own price elasticity of demand for gasoline in the United States is 0.2. Because of this highly inelastic demand in the United States, Mr. Abel is thinking about raising prices to increase revenues and profits. He has asked for your opinion. Discuss the implications of own price elasticity. Discuss the relationship between price changes, revenue, and own price elasticity of demand. Interpret the -0.2 own price elasticity of demand. Do you recommend that Mr. Abel raise prices? Prepare a 3-4 page report in APA style that summarizes your findings. If you use outside resources, cite appropriately. Submit your report using the instructions below.

The topic that I have decided to write about is the rising cost of living, and my classmates idea that I have decided to write about is inflation. I have attached the assignment instructions and in the second document I have included the responses from classmates. Each bullet point is a different persons response.

Economic growth is generally measured by calculating the growth rate of Gross Domestic Product. Refer to the following two web articles, “Why GDP Fails as a Measure of Well-Being Links to an external site. ( )” and “Measuring Economies: The Trouble with GDP Links to an external site. ( ).” . The articles discusses the weaknesses of GDP as a measure of well-being and discusses several alternatives. Choose one of the alternative metrics discussed in the articles you favor. In 250 to 300 words, describe what it is, and explain why you believe it would be a better measure of well-being. What would measuring economic growth with your chosen metric mean? Explain why you would prefer using it to measure economic growth instead of GDP?

In the hope of high returns, venture capitalists provide funds to finance new (start up) companies. However, potential competitors and structures of the market into which the new firm enters are extremely important in realization of profits. Among different market structures, which one do you believe provides the highest possible return for a new company and why?

The long run phenomena of economies of scale describes as the reduction in long-run average cost and hence, in efficiency sourced to increase in firm’s scale of operation. Discuss whether long-term phenomena of economies of scale have any relevance to Walmart.