Principles Of Microeconomics
You will be required to write a 2-3 page paper. In this paper you will select the firm about which you will write. There are no specific requirements for the firm you select, but it is recommended that you follow two general guidelines: First, select a firm that you have particular interest in. This will add interest to the paper and if you have interest and knowledge in the firm already, you will not need to do much extra research. Second, please avoid the big, “obvious” companies—Apple, Nike, Facebook, and the like.
Also, it would be best (and easier for you) to pick a firm that produces its own good or service, rather than a reseller like a grocery store or a retailer. This is just a strong suggestion rather than a prohibition. There should be no problem applying the concepts from the course to almost any firm you would select.
In this paper, you will apply what you have learned way back in Chapter 4 to the firm or business you selected in order to see how the concepts can be applied to a business situation.
For the particular firm/business you selected, explain how the demand for the firm’s product affects its choices regarding how much it can sell and the price that it can set for the goods it produces.
What could cause the demand for your business’ products to increase or decrease? Choose a couple of events that could affect the demand for the firm’s product and describe them. What effect would this have on the demand for the firm’s products and for the firm’s profitability? How would the firm react (what decisions would it possibly make) if those events occurred?
Are there any ways the firm can increase the demand for its products? What could the firm do, and why might a firm do those things? Do you see evidence that the firm you chose is doing those things?