...ECO/365 Final Exam v.4 | User | 9020019679 | First Name | LORETTA | Last Name | LUCERO | Confirmation # | 23611188 | Score | 50 | Total Questions: | 30 | Total Correct | 15 | Start: | 5/29/2013 12:48:13 PM | End: | 5/29/2013 1:11:00 PM | Here is some additional information on items you missed: Topic: Differentiate between macroeconomics and microeconomics. Question: A basic difference between microeconomics and macroeconomics is that microeconomics | Topic: Analyze the effect of changes in supply and demand on the equilibrium price and quantity. Question: The distinction between supply and the quantity supplied is best made by saying that | Topic: Determine how elasticities affect pricing and purchasing decisions. Question: Price elasticity of demand is the: | Topic: Analyze the relationship between productivity and the cost of production. Question: Other things being equal, when average productivity falls, | Topic: Analyze the effect of changes in the supply of and demand for factors of production on the price of inputs. Question: A firm's demand for labor is derived from the | Topic: Analyze the effect of changes in marginal revenues and costs on a firm’s profit-making potential. Question: Owen runs a delivery business and currently employs three drivers. He owns three vans that employees use to make deliveries, but he is considering hiring a fourth driver. If he hires a fourth driver, he can schedule breaks and lunch hours so...
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...Current Market Conditions Competitive Analysis Principles of Microeconomics ECO 365 David Norcross April 13, 2015 Current Market Conditions Competitive Analysis In this paper, Team A is participating in a strategic planning group creating a new product at General Motors. The following is a competitive market analysis on the potential of our new 2016 Chevy Volt’s success. We will be focusing on our competitor Toyota and their Prius lineup. Additionally, we will summarize our target consumer and current market conditions. Then we will cover variables that weigh on supply, demand, and equilibrium prices. Next, we will consider the pros and cons our firm faces while identifying the effect on our competitiveness and long-term profitability. Then, we will evaluate factors that influence fixed and variable costs. Lastly, we will provide recommendations on how GM can grow their profits and increase their competiveness. The Product The Chevy Volt was a concept designed by Bob Lutz Jon Lauckner of General Motors ‘GM’ in 2006 to overcome many of the limitations of pure electric vehicles while retaining many of the beneficial elements. The purpose of this car was to leap-frog the technology of the Prius hybrid. The theory of this concept was a car that would be able to drive on electricity for the first forty miles, and then a generator would run gasoline to extend the range of the car. In 2010, the production version was able to achieve 35 miles on electric and average 37 miles...
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...Market Conditions Competitive Analysis Taze Vega ECO/365 October 20, 2014 John Bayer Market Conditions Competitive Analysis Factors Affecting Variable Costs Variable costs, as defined by Collins Dictionary of Economics (2006), are production costs that can change depending on the amount of output. Variable costs in manufacturing soft drinks would be packaging, labor (overtime costs), energy usage and raw materials. Of these, raw materials such as sugar used in making the product would be the cost that varies the most. The Law of Supply states that if the demand of an item rises then the price of that item will also rise (Colander, 2013). Therefore, if the demand for sweeteners were to rise then the price of raw materials would also rise. This would increase the cost of manufacturing the soft drink. The cost of productivity and labor would rise if for some reason the demand for the coke product was to rise also. The reason for this is that to fulfill the rising demand, Coca-Cola would have to increase the amount of employees working which would increase the cost of productivity due to energy usage and labor costs. Factors Affecting Fixed Costs According to Collins Dictionary of Economics (2006), fixed costs are production costs that do not change and are not affected by the volume of activity or the quantity of production. Some examples of fixed costs are rent, overhead and payroll. There are factors that may, at times, affect the changes of fixed costs. These factors...
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...Competitive Market Conditions Competitive Market Analysis Jeremy Clark, Marcia Falls, Alfred Bishop ECO/365 December 04, 2014 Donna Kassar Competitive Market Conditions Competitive Market Analysis Current Market Conditions Competitive Analysis Understanding the competitive forces within a market is essential for the successful rollout of a new product. The following paper will perform a competitive market analysis to determine the product’s potential success. Our team has selected the Coca-Cola and its new stevia sweetened cola product for this analysis. Stevia is a natural zero-calorie sweetener that has become popular among heath food consumers. Coca-Cola has already experimented with this product in overseas markets with an expected release in the United States soon. Using what we have learned about microeconomic concepts so far in ECO/365, we will analyze the fundamental market forces that will influence this product’s success in relation to the existing competition. Factors That Affect Demand, Supply, and Equilibrium Prices Supply and demand are forces that are always working to reach an equilibrium point in a competitive market. The soft drink industry is highly competitive and there are numerous firms seeking to gain market share. The two largest firms in the market are Coca-Cola and PepsiCo, which collectively dominate the vast majority of the market. These two firms have built exceptional brand loyalty and have contracted with fast food chains to serve their...
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...ECO/365– Principles of Microeconomics– Final Exam Study Guide How to Use this Study Guide – READ ME FIRST The following study guide will NOT have the same exact questions on your test! However, this study guide WILL help you ace the Final Exam. The guide covers the same topics and will help you gain a deeper understanding of the concepts. Best of all, you are still guaranteed a score of 90% or higher or your money back! Tip #1: Use CRTL+F to search a related keyword to quickly find the topic you need. Tip #2: If a topic is missing, please email us at support@accnerd.com. We can usually provide immediate custom support during normal business hours. 1) Concert ticket prices increase by 5%, while attendance decreases by 2%. What is the elasticity of demand for concert tickets? 0.4 Explanation: In this problem, elasticity of demand is calculated as 2 divided by 5. 2) How is microeconomics different from macroeconomics? Microeconomics covers the choices made by individuals. Macroeconomics covers the total economy’s performance. Explanation: Microeconomics is about individual choices, while Macroeconomics is about the overall economy. 3) What type of research contains the relationship between the money supply, interest rates, and inflation rates? Macroeconomic Explanation: Factors that affect massive groups of people are considered macroeconomic research. 4) Oil prices started rising in the 1990s. Much of the supply was met from sources that were non-OPEC...
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...Summary of Case 6: Thoughtful Forecaster 1. Understanding the Financial Relationships of the Business Enterprise: Financial statements provide information of business’s financial activities in a period of time such as the income statement, profit and loss statement, and measures flows of costs, revenue, and profits. Thorough analysis of financial statements help the company understand the mechanics of the systems that make up business operation. 2. Interpreting Financial Ratios: Financial ratios help the company identify and compare relationships across financial – statement line item. The comparison of ratios provides diagnostic tools for assessing the health of the various systems in the company. * Growth Rates: Growth rates capture the year – on – year percentage change in a particular line item Growth rates sales = (sales in this year – sales in previous years) / sales in previous years * Margins: Margin ratios capture the percentage of revenue accounted for by profit or the percentage of revenue not consumed by business costs. Gross margin = Gross Profit / Total revenue Operating margin = Operating profit / Total revenue Net Profit margin = Net income / Total revenue * Turnover: Turnover ratios measure the productivity, or efficiency, of business assets. The turnover ratio is considered by dividing a related measure of volume from the income statement by a measure of investment from the balance sheet. Productivity or efficient assets produce...
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...ECO/365 Final Examination Study Guide This study guide prepares you for the Final Examination you complete in the last week of the course. It contains practice questions, which are related to each week’s objectives. Highlight the correct response, and then refer to the answer key at the end of this Study Guide to check your answers. Use each week’s questions as a self-test at the start of a new week to reflect on the previous week’s concepts. When you come across concepts that you are unfamiliar with, refer to the Student Guide for that particular week. Week One: Fundamentals of Microeconomics Objective: Differentiate between macroeconomics and microeconomics. 1. Macroeconomics is the study of individual choice and how that choice is influenced by economic forces the study of the pricing policies of firms and the purchasing decisions of households the study of aggregate economic relationships an analysis of economic reality that proceeds from the parts to the whole 2. The invisible hand theorem comes from microeconomics macroeconomics sociology political science Objective: Analyze the effect of changes in supply and demand on the equilibrium price and quantity. 3. The law of demand states that the quantity demanded of a good is inversely related to the price of that good. Therefore, as the price of a good goes up, the quantity demanded goes up up, the quantity demanded goes down down, the quantity demanded goes down down, the quantity demanded...
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...Shantel Mackey Market Structure Simulation University Of Phoenix ECO/ 365 July 18, 2011 | |Perfect competition |Monopoly |Monopolistic Competition |Oligopoly | |An example of an organization| Investment Bank | Electric Company| Clothing Co. | Wireless Co. | |Goods or services produced by| Homogeneous |No close |Differentiate | Homogeneous/ | |the organization | |Substitutes | |Differentiate | |Barriers to entry | None | Extremely High | Somewhat Low | Somewhat High | |Numbers of organizations | Large Sums | One | Several | Few | |Price elasticity of demand | None |Absolute |Somewhat |Limited Owing to | | | | | |Competition | |Economic profits (Is there a | No | Yes | No | Yes | |presence of economic profits?| | | | | Abstract ...
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...Current Market Conditions Competitive Analysis: Apple, Inc. ECO/365 February 23, 2015 Current Market Conditions Competitive Analysis: Apple, Inc. Apple, Inc. is a multinational corporation that creates consumer electronics, personal computers, computer software, commercial servers, and they distribute media content. Their leading product is a smartphone called the iPhone, which began selling in the early 2000's. It has made them billions of dollars over time, because their cost to manufacture the phone is less than what they can charge to sell the phone to consumers. This leads to Apple producing larger profits for their shareholders. Besides manufacturing the iPhone, Apple is also responsible for the iPad, iPods, and Mac computers. Apple is known to have expensive products, but their products still have a high consumer demand. The first iPhone was unveiled in the market and sold to consumers on June 29, 2007. The device is unique because it is centered on its touch screen user interface, Wi-Fi, and downloading capabilities. According to Steve Jobs, Apple’s former CEO, “iPhone is a revolutionary and magical product that is literally five years ahead of any other mobile phone…” (Apple Press Info, 2007). The special capabilities of this phone have since led to seven versions of iPhones being produced and released to market. Factors that can affect the supply and demand and hence the equilibrium price of iPhones are varied. When iPhones first came on the...
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...Week One Article Analysis ECO/365 January 16, 2012 Week One Article Analysis David Colander defines economics as "the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society” (Colander, 2010, p. 4). Coordination in this definition refers to production content, method, recipients, and even quantity. To think like an economist one must analyze every situation by comparing the costs and benefits and make any decisions based on those findings (Colander, 2010). The study of microeconomics zeroes in on the individual and analyzes how economic forces affect the choices he or she makes. Economic forces will ensure that what people want and will pay to get will match what is available. This is the concept of supply and demand. If the prices are such that people are not willing to pay it to obtain an item or service, they will choose to buy less of it, not buy it, or buy a substitute. This is the working of the law of demand. The price affects both supply and demand. When prices increase, the demand decreases, and when prices decrease, the demand increases. In the law of supply, however, if prices increase, individuals and companies will increase the supply because the opportunity cost of not producing the product rises with the price (Colander, 2010). There are factors other than price that can lead to changes in supply as well as changes in demand. These could be government...
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...Current Market Conditions Competitive Analysis Principles of Microeconomics / Eco 365 John Bayer May 12, 2014 In today’s society everything we do is pretty much wrapped up in evolving technology as it constantly changes with time. This paper will discuss how Apple’s I Phone affects the demand, supply, and the equilibrium prices within a market. The analysis of its competitors as well as potential buyers along with customer base will be discussed. The cell phone industry is one line of business that will forever stay busy. According to Gartner in 2013 Apple sold 150,785.9 trailing right behind Samsung with 299,794.9. Most individuals have done away with the use of home phone or in other terms land line phones and starting to use cell phones. This has a lot to do with technology advancing. Cell phones are now equipped to be able to do things that you were once only able to do on a computer. They are used more now for business purposes, social networking, gaming and paying bills online. Thirty years ago Apple introduced Macintosh with a promise to put the creative power of technology in everyone’s hands (Apple, 2014) needless to say they have firmly stood behind their word. Apple’s supply and demand is factored by a number of things. When manufacturers introduce items to their customers or target customers it’s based off the demand of the customer which determines the supply that is later produced. When you have a demand in a product like you do with the I Phone, you...
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...------------------------------------------------- Monopoly From Wikipedia, the free encyclopedia This article is about the economic term. For the board game, see Monopoly (game). For other uses, seeMonopoly (disambiguation). "I Like a Little Competition"—J. P. Morgan by Art Young. Cartoon relating to the answer J. P. Morgan gave when asked whether he disliked competition at the Pujo Committee.[1] A monopoly (from Greek monos μόνος (alone or single) + polein πωλεῖν (to sell)) exists when a specific person or enterprise is the only supplier of a particular commodity (this contrasts with a monopsony which relates to a single entity's control of a market to purchase a good or service, and with oligopoly which consists of a few entities dominating an industry).[2]Monopolies are thus characterized by a lack of economic competition to produce the good or service and a lack of viable substitute goods.[3] The verb "monopolise" refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge high prices.[4] Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry (or market).[4] A monopoly is distinguished from a monopsony, in which there is only one buyer of a product or service; a monopoly may...
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...Current Market Conditions Competitive Analysis Microeconomics 365 December 8, 2014 Introduction/ History of Apple, Inc. When participating in an increasingly competitive industry like the cell phone industry one must be prepared for any thing their competitors come out with. In order to stay ahead or at least in the game is to know your competitor and their product. Apple is one of the biggest cell phone competitors there is and knowing about them will always help out. Apple Inc. is a multinational corporation with 284 retail locations spanning 10 different countries. Apple has developed a unique reputation and is currently the largest technology firm in the world; with its stock market value reaching $500 billion in sales for 2011, (History of Apple, 2012). With headquarters located in Cupertino, California, Steve Jobs and Steve Wozniak successfully invented, and launched the first personal computer kit on April fool’s Day in 1976; known as the Apple I. The following year, the Apple computer, or Apple I, led to the incorporation of Apple Computer, Inc. As technology grew through the 80’s and 90’s, Steve and Steve continued to manufacture personal computers, or PC’s, including product lines such as Apple II, Macintosh, and Power Mac. Advancement of Apple Computer Inc. Steve and Steve continued to grow Apple Computer Inc., becoming the multinational leader in the consumer electronics industry and in 2001, dropped ‘computer’ from its name; after the successful...
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...Current Market Conditions Competitive Analysis Rishi Madhav ECO/ 365 June 18, 2014 Professor Renee Barela-Gutierrez Current Market Conditions Competitive Analysis Here at Apple Inc. we are coming to our years end with the success of the iPhone 5s. With the iPhone 6 in development, it is that time of year where we must look at our new product and determine its potential success. With all newly upgraded software and added features such as a new camera system, it vital that we show our customers just how much more beneficial our product remains as the best. We will look at our competitors and more importantly their products that can potentially compete with the iPhone 6 and how this will affect our prices. Steve Jobs and Steve Wozniak founded the company back in 1976, and both have driven Apple Inc. to be the largest computer companies in the world. While both were very smart, they decided to drop out of college and pursue their passion in the technology industry. Wozniak has a passion in computer design and eventually created the Apple I. Steve Jobs however always looked to the future and was able to convince Wozniak to sell the machine and eventually helped to start Apple Computer. Many people did not take the Apple I very seriously, and it was the design of the Apple II that helped launch Apple. Fast forward to 1982, apple because the fastest company to make $1 million in annual sales and by 1985, turmoil struck the company that eventually led to Steve Jobs firing...
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...Re-Write in your own words Differentiating between Market Structures . ECO 365 March 7, 2016 Differentiating between Market Structures Swift Transportation Company Introduction The trucking industry in the US is an indispensable network service in the US as it is the most important carrier of freight. Nearly 70% of total freight movement in the US takes place through trucks (ATA, 2016). It consists of 3 million heavy duty trucks that carry around 9.2 billion tons of freight annually as per current statistics. A large number of big and small companies have their transport operating system in this industry. The market is segmented into two parts, the Truckload (TL) that carry full capacity load from one point to another and does not reload en route, and the Less-Than-Truckload (LTL) which consists of smaller carriers that carry less amount of load compared to TL and operates in the regional network (Parming, 2013). In this paper we are going to study the operations of the second biggest trucking company in the US, the Swift Transportation Company Inc., in terms of its market structure and related strategies. Brief Description of the Company The transportation company was founded in 1966 by Carl Moyes and his sons Jerry and Ronald in Phoenix Arizona (Reference for Business, 2016). Presently it operates in the USA, Mexico and Canada. It covers whole of USA and is the second largest trucking company in the US. It operates both in the TL and LTL segment. The company...
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