ECO 550 Week 1 Discussion Question 1
Answer the following discussions based on the Katrina’s Candies scenario:
From the scenario for Katrina’s Candies, examine the key factors affecting the demand for and the supply of a good in general and Katrina’s Candies specifically. Distinguish between a change in demand and a change in the quantity demanded (movement along the demand curve).
From the above, indicate the factors that are responsible for a shift in demand; and explain how the change is effected by these factors. Indicate the factors that are responsible for a shift in supply; and explain how the change is affected by these factors.
ECO 550 Week 1 Discussion 2: “Supply and Demand”
From the e-Activity, examine the key factors that influence the supply and demand of the selected good in general and Katrina’s Candies specifically. Propose two (2) methods in which organizations that provide the good may utilize this information. Provide a rationale for your response.
ECO 550 Week 2 Discussion 1: “Estimating Demand”
From the scenario for Katrina’s Candies, examine the procedure Herb will use to estimate the demand model developed in the week 1 scenario . Determine the meaning, relevance, and importance for a manager interpreting the regression results.
ECO 550 Week 2 Discussion 2: “Estimating Elasticity of Demand”
From the e-Activity, analyze the elasticity of demand for products within the selected industry relevant to Katrina’s Candies. Determine the factors involved in making decisions about pricing these products that you believe to be the most influential. Provide a rationale for your response.
ECO 550 Week 3 Discussion 1: “Managing in the Global Economy”
From the scenario for Katrina’s Candies, assuming the absence of quantitative data, determine the qualitative forecasting techniques that could be used within this scenario.
Now, assume you have acquired some time series data that would enable you to make short, medium, and long term forecasts. Ascertain the quantitative technique that will provide you with the most accurate forecast.
ECO 550 Week 4 Discussion: “Production Economics and Decisions”
From the scenario for Katrina’s Candies, determine the relevant costs for the expansion decision, and distinguish between the short run and the long run costs. Recommend the key decision-making criteria that Katrina’s Candies should use for expansion decisions in the short run and in the long run. Determine under what conditions, a company should or should not continue to produce the good or service.
ECO 550 Week 5 Discussion: “Market Structures and Cost Management”
From the scenario for Katrina’s Candies, determine the appropriate type of market structure for the situation in question. Cite at least four (4) defining characteristics that have helped you reach this decision regarding the appropriateness of the chosen structure.
Imagine that you are a manager of a chemical company. An accident has occurred in which chemicals leaked into the ground water nearby. The community is unaware of the accident. Compare the primary costs involved in cleaning up the water immediately (and thus confessing) versus hiding your culpability now and possibly paying more in the future. Predict the impact on profitability in both situations.
ECO 550 Week 6 Discussion: “Market Structures”
From the scenario, assuming Katrina’s Candies is operating in the monopolistically competitive market structure and faces the following weekly demand and short-run cost functions:
VC = 20Q+0.006665 Q2 with MC=20 + 0.01333Q and FC = $5,000
P = 50-0.01Q and MR = 50-0.02Q
*Where price is in $ and Q is in kilograms. All answers should be rounded to the nearest whole number.
Algebraically, determine what price Katrina’s Candies should charge in order for the company to maximize profit in the short run. Determine the quantity that would be produced at this price and the maximum profit possible.
ECO 550 Week 7 Discussion: “Predicting Price-Setting Strategies”
From the scenario for Katrina’s Candies, determine the importance of predicting the pricing strategies of rival firms in an industry characterized by mutual interdependence. Examine the common price setting strategies of airlines that use game theory. Predict the potential effects of such pricing strategies on the demand for seats, and conclude the resulting impact on the profitability of the airlines.
ECO 550 Week 8 Discussion: “Entering a Merger and Organizational Form”
From the scenario for Katrina’s Candies, examine the major implications for firms entering into a merger. Explain the criteria the U.S. Department of Justice and the Federal Trade Commission would follow when deciding on whether or not to approve a proposed merger.
ECO 550 Week 9 Discussion
From the scenario for Katrina’s Candies, take a position as to whether government regulation is constraining or enabling in this situation, as it relates to the operational efficiency of the company.
Speculate on the fundamental manner in which government regulation could impact the shareholders’ wealth and profitability.
From the e-Activity, take a position on whether the banking industry needs more or less government regulation. Support your position with two (2) examples of the impact of regulation.
ECO 550 Week 10 Discussion
From the scenario for Katrina’s Candies, suggest one (1) method in which Herb could use a cost-benefit analysis to argue for or against an expansion. Create three (3) optimal decision rules for Katrina’s Candies (e.g., whether to hire more staff or hire temporary workers to meet production schedules
Assess both the short-term and the long-term costs and benefits of obtaining a graduate degree. Support your decision to obtain a graduate degree with a cost-benefit analysis of your particular situation.