Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operates.

Use regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operate

 

Determine the market structure in which the low-calorie frozen, microwaveable food company operates using the findings of the regression analysis and the other calculations from Assignment 1.

Use the internet to conduct research on two (2) of the top rivals in the low-calorie frozen, microwaveable food sector. Make note of their pricing policies, financial performance, and connections with other companies in the sector (globally).

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In a six- to eight-page paper, address the following:

Describe a strategy that will be used to determine how well the market structure works for the company’s operations. The market structure [or selling environment] was assumed in Assignment 1 to be perfectly competitive, and the equilibrium price was established by making QD equal to QS. You are now aware of recent changes in the marketplace that point to a market with limited competition where your company now has significant market power in determining its own “optimal” price. Determine two (2) possible causes of the shift, given that business activities have altered from the market structure described in the original scenario in Assignment 1. Identify the main way in which this shift is expected to affect how business operations are carried out in the new market environment. Given the cost functions below, analyze the key short- and long-term cost functions for the manufacturer of low-calorie, microwaveable frozen foods. Provide specific examples of how the low-calorie food company may use this data to inform both short- and long-term decisions. MC = 100 + 0.0126424Q, TC = 160,000,000 + 100Q + 0.0063212Q2, and VC = 100Q + 0.0063212Q2.

Identify the potential situations in which the business should cease operations. Identify the most important steps management should take to address these situations. Give a justification for your response. (Hint: To remain in business, your company’s price must be sufficient to cover average variable costs in the short term and average total costs over the long term.) Give one (1) pricing strategy that will help your low-calorie, frozen food company make the most money. Give a justification for your suggestion. (Hints:

You established your company’s market demand equation in Assignment 1. Find the inverse demand equation at this point. Once you’ve done that, locate your company’s total revenue function (TR; P x Q). Find your company’s marginal revenue (MR) function from the total revenue function. Now that you have market power, use the profit maximization rule MR = MC to establish your ideal price and output level. Compare these numbers to the ones you came up with for Assignment 1. Check to see if your price is greater or cheaper. Outline a strategy the corporation may use to assess its financial success based on the information in the scenario. Think about all the major performance indicators, including short- and long-term firm profit or loss, as well as the fundamental ways that each one affects managerial choices. (Hints:

Using the price and output levels you generated in Section 5, calculate the short-term profit. Optional: You might want to use the cost function supplied here to compare this profit to what Assignment 1’s profit would have been. Use the output level you generated in Part 5 and the cost information from Part 3 to calculate profit over the long term, assuming a highly competitive market for sales. Determine the basis for this supposition. Give the organization two (2) suggestions for improving profitability and providing greater value to its stakeholders. Briefly describe how you intend to put your recommendations into action. For this task, consult at least five (5) reliable academic sources. Note: Wikipedia is not a legitimate source for academic information. These formatting criteria must be adhered to in your assignment:

be typed with one-inch margins on all sides, Times New Roman font in size 12, double spacing, and APA style citations and references. If there are any more instructions, ask your lecturer. Include a cover page with the assignment’s title, your name, the name of your professor, the name of the course, and the date. The required assignment page length does not include the cover page or the reference page. The specific learning objectives for the course linked to this assignment are:

Analyze the production and cost functions over the short and long term. Apply macroeconomic concepts to how changes in the global and national economies affect wage rates, inflation, and economic growth. Determine for monopolies and businesses in competitive industries the price and output level that will maximize profits given the current operating costs. Investigate managerial economics and globalization-related challenges using technology and information resources. Using appropriate writing techniques, write plainly and clearly about management economics and globalization. To view the grading scale, click here.

 

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