Microeconomics Case Study
An Economic Analysis of “Your Company’s Name”
Part I Introduction or Executive summary
Provide a brief summary of your case study, please include in this introduction or executive summary the information below: (note that it is not a Q&A format, please provide a summary and include this information as part of the body of your introduction):
1- Definition of your business.
2- Why and when was the business founded and by who?
3- Market segments they cater to. Who are their customers?
4- How many employees do they have?
5- Stocks price any changes in stock price in the last 3 years. (historical data)
6- What was their revenue and profit for 2012? (if is a non-public company) estimate or make an assumption of the amount of sales.
7- As a business what is their main asset? (Labor, product, brand).
8- Why is this business relevant to you (why you chose it?)
Part II Economic Evaluation of the Company:
How has demand or supply changed since the founding of the company?
The goal of the majority of the businesses is to create a less elastic product or service, to have more control of their prices and therefore their profit. Describe what is your business doing to create a less elastic market for their product or service? Provide evidence of this using news articles, promotions (print the promotion advertisement).
Describe examples of incentives they use to promote their product or service.
Summarize and explain current issues subsidies, tax issues, legal issues. (Use current news or information in your research (financial report)).
Part III Representation of the market
Create a graph representing the current market for a product or service from your business. Use the current market price for your Ep and Eq. Name all elements in your graph including, but not limiting to: supply, demand, price, quantity, quantity demanded, quantity supplied, marginal cost, average cost.
Part IV Economic Forecast:
1- Assume that you are a consultant economist just hired to improve the overall health of the company. Describe some initiatives or strategies you will recommend to the Chief Executive Officer (CEO). Explain how these initiatives will improve the issue.
2-Based on your research calculate the following, apply the formulas used in chapter 11:
I. Total Cost
III. Marginal Revenue
IV. Average Cost
Part V Conclusion
In addition to a conclusion about your findings in the case study; describe how your evaluation of this business will help you in your future as a professional.