Mathematics Homework Help

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Competencies

In this project, you will demonstrate your mastery of the following competencies:

• Inform business decisions using microeconomic models and theories
• Determine the impact of economic costs on organizational and individual decision making
• Explain how market structure impacts a business’s entry and exit into a market and its ability to generate economic profit

Scenario

You and your friend from college have just graduated. You majored in  business, and your friend majored in a creative field. Your friend is  highly inventive and has come up with an excellent idea for a new  product. You both believe in this idea so much that you have agreed to  become business partners. However, before you embark on your  entrepreneurial adventure, you will have to explain some key  microeconomics concepts to your partner that are important to make sound  business decisions.

Your business partner is less than enthusiastic about this prospect  and has never had an interest in what is often described as the dry and  boring field of economics. Every time you have tried to engage your  partner in practical discussions, they brush you off and decide to go  play video games instead.

Aha! This gives you an idea: What if you could convince your friend  to learn about economics through games? You have found several  simulation games that demonstrate in real and interesting ways the  economic principles that you know your partner needs.

Once you have played the games, you will create a memorandum report  summarizing for your friend the educational value of your experiment. In  your memorandum, you will restate the key principles and takeaways of  each simulation, as well as illustrate how these ideas are relevant to  your future entrepreneurial success.

Directions

First, assemble the materials that you will need to complete this assignment:

1. You will need several simulation report images for your memorandum.  All the necessary data visualizations will be generated after you have  completed each simulation game. You will be required to save image files  of your simulation reports for your simulation discussions. These  should also be used to create your memorandum report for the course  project. If you have any questions or concerns about the simulation data  that should be used for your project, you should promptly reach out to  your instructor.
2. Review and use the Project Template located in the What to Submit section.

   You  are expected to reference any source material used in your memorandum  report with appropriate citations. To support you, a References page has  been added to the project template with a citation for this course’s  reading already provided. Any other references you add should be cited  according to APA format.

Once you have assembled the required materials listed above, you can  now begin drafting your memorandum report by completing the following  steps:

1. Comparative Advantage: Discuss the Comparative  Advantage (With Trade) simulation that you played in Module Two. You  should add the Production Decisions graph and the Production Trade graph  (i.e., the graph showing how many hamburgers per fries) from you  simulation report into the project template as Figures 1.1 and 1.2.  Then, answer the following questions in the paragraphs below the  figures: 
   • How does this simulation demonstrate how individuals evaluate opportunity costs  to make business decisions? Use the Production Decisions graph from the  simulation as a reference to explain what role the  production-possibility frontier (PPF) has in the decision-making  process.
   • Explain how comparative advantage impacts a firm’s decision to engage in trade. Would a business’s decision to trade cause a change to its PPF? Provide specific reasoning to support your claims.
2. Competitive Markets and Externalities: Discuss the  Competitive Markets and Externalities simulations (both with and without  policy interventions) that you played in Modules Three and Four. Add  the Supply and Demand chart and the Outcomes by Market table from your  simulation reports into the project template as Figures 2.1 and 2.2.  Then, answer the following questions in the paragraphs below the  figures: 
   • What impact do policy interventions have on the supply and demand equilibrium for a product? Provide specific examples from the simulation to illustrate.
   • What are the determinants of price elasticity of  demand? Identify at least three examples. Based on the outcome of the  simulation, explain how price elasticity can impact pricing decisions  and total revenue of the firm.
   • Based on the results of the simulation, can policy market interventions cause consumer or producer surplus? Explain why using specific reasoning.
3. Production, Entry, and Exit: Discuss the  Production, Entry, and Exit simulation that you played in Module Five.  Add the Aggregate Outcomes chart from your simulation report into the  project template as Figure 3.1. Then, answer the following questions in  the paragraphs below the figure: 
   • Analyze a business owner’s decision making  regarding whether to enter a market. For example, what factors  determined the driver’s market entry and exit in the simulation? Use  economic models to support your analysis.
   • How does a business owner applying the concept of marginal costs  decide how much to produce? For example, how did the driver determine  how many hours to drive each day? Use economic models to explain.
   • How does the impact of fixed costs change  production decisions in the short run and in the long run? Use the  average-total-cost (ATC) model included in the module reading chapters  to demonstrate this impact.
4. Market Structures: Discuss the market structures  simulations (Price Discrimination and Cournot) that you played in  Modules Six and Seven. Then, do the following in the project template: 
   • Complete Table 4.1 as a reference guide for your business partner. The table should compare the attributes of each of the four listed market structures.
   • Answer the following questions in the paragraphs below the table: 
     • Explain what market inefficiencies derive from monopolies and monopolistic competition. Use examples from the textbook to support your claims.
     • How do firms in an oligopolistic market set their prices? Use specific examples from the simulations or from the textbook to support your claims.
     • Explain how firms that compete in the four different market structures determine profitability. Use specific examples from the simulations or the textbook to support your claims.
5. Conclusions: Draw your overall conclusions about  the relevance and significance of microeconomics. How will  microeconomics principles impact your business decisions moving forward?  Provide recommendations to your business partner for your future  business venture.
6. Finally, ensure that all of your sources are properly cited using in-line citations and references according to APA format.

What to Submit

To complete this project, you must submit the following:

Memorandum Report
Your memorandum report should  summarize the key principles and takeaways of each microeconomics  simulation for your business partner. It should also illustrate how  these ideas are relevant to your future entrepreneurial success.

Template: Project Template
Use  this template to structure your memorandum report, and submit it as a  Word document. Sources should be cited according to APA style.

Supporting Materials

The following resources support your work on the project:

Video: How to Use the Snipping Tool (Beginner’s Guide) (for PC) (5:23)
Use this tutorial for help with snipping, copying, and pasting your data visualizations into your project template.

A captioned version of this video is available: How to Use the Snipping Tool (Beginner’s Guide) (CC).