ECO 550 Assgnmnt 1 Essay

Company Q has had a large demand from their customers to provide healthy and organic foods over the last few years. They recently started offering a small variety of health and organic food items, which is a step in the right direction toward being socially responsible. They need to be more attentive to the needs and wants of their customers as it shouldn’t have taken years to bring in these demanded products. When there is a demand for products and the company doesn’t respond to that demand, it’s perceived by the consumers that the company simply doesn’t care about their needs and wants. Bringing in a selection of these products was a good start in satisfying their customers. However, with such a demand for these items, having a small and limited selection is just not enough. Expanding the line of health and organic food items will accomplish two things. First and foremost it will appease the current customers and bring in a new clientele that is health conscious, thus helping to create a healthier community and at the same time increasing sales. The higher margin on the health and organic items coupled with the increase in sales will really boost the overall profit margin of the company. Company Q does need to be sure that they don’t over price these products so as to not push away business due to overpricing.

If the product coast a large percentage of the average consumer’s income, people will pay more attention to sale prices because they may be afraid of a fact that if the price keeps rising, they can’t afford it because it is expensive and costs most of their income. It is common that we spend more than $200 on one pair of Nike shoes, which are quite expensive. However, the price of bread is low. Furthermore, one pair of Nike shoes costs more percentage of clients’ income than a piece of bread. If the price declines, people would like to buy more Nike shoes because they can’t afford it in normal time. However, people won’t buy too much bread than before because the bread may go rancid quickly. So people are more sensitive to the price of Nike shoes. As a consequence, all Nike shoes sold in Canada have more elasticity than all bread sold in Canada.

ACCT505 Part B Capital Budgeting problem Clark Paints Data: Cost of new equipment $200,000 Expected life of equipment in years 5 yrs Disposal value in 5 years $40,000 Life production - number of cans 5,500,000 Annual production or purchase needs $1,100,000 Initial training costs Number of workers needed 3 Annual hours to be worked per employee 2000 hrs Earnings per hour for employees $12 Annual health benefits per employee $2,500

ABC Company includes post-balance sheet events in our notes. All contingencies or events that occur after the balance sheet date can have a material impact on our operating results, including the operating results of our subsidiaries. All events are fully disclosed. The potential impact of the event is also disclosed, along with the estimate of how significantly the event may impact our financial position.

Use the Internet to research two (2) of the leading competitors in the low-calorie frozen, microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within the industry (worldwide).

Thomas, C. R., & Maurice, S. C. (2010). Managerial Economics: Foundations of Business Analysis and Strategy (10th ed.). New York:

Baye, M.R., Prince, J.T. (2014). Managerial Economics and Business Strategy. New York, NY: McGraw-Hill Irwin

In this paper, I will outline a plan that managers in the low-calorie, frozen microwavable food industry be able to use when there is an anticipation of raising prices. Next, I will cover how government policies can affect this type of company. Determine is government regulation is needed in the industry. Cover any complexities that could come up when a company is expanding via capital projects. Lastly, cover how the company can create a convergence between the interests of stockholders and managers.

Keywords: economics for managers 2nd edition economics for managers farnham economics for managers farnham solutions economics for managers farnham test bank

The purpose of this paper is to discuss the reasons why I, as a hired management consultant, would suggest a fictitious company either shut down operations or continue them based on its operational health. In order to do this I must first describe, in brief, the basic details of the company I have created to provide some tangibility to this assignment. Then I will assess the current environmental scan factors relevant to the decision making process, focusing on those which have the greatest impact on both the overall plant operations and the managerial decision of whether or not to discontinue operations. After which I will evaluate the company’s financial performance

In the case where the tax imposed had made the prices for fast foods greater than that of healthier food then these goods would have a positive cross price elasticity. For example, if there is an increase in the price for fast food by 10% and quantity demanded for healthier food increases by 2% then XED = +0.2, and because this is a positive number we can see that they are substitutes. In the diagram to the left we witness that these goods are cross price elastic. When an increase in prices for fast foods (P1 to P2 ), an

The major short run and long run costs have to be outlined so as to determine whether frozen microwaveable food company is able to make major decisions in the industry. There can be a possibility of this company to earn supernatural profits and even incur losses as well as operate at break even when a monopolistic competitive firm operates in the short run. Other firms will be highly attracted when it earns such economic profits. This will prompt many firms to enter the industry and be able to make products that will suit the needs of their consumers thereby creating customer satisfaction. It will then be realized that the proportionate demand curve will shift to the left. However it can shift to the right if the firm can make losses. There will be continuity of this process until a given firm will realize that the total costs and total revenue are the same. It will be noted that after some good period of time, each firm in the industry will be able to earn a normal profit (Scherer & Ross, 1990).

The low-calorie microwaveable food company wants to keep the prices of its product as inelastic as possible to make sure that the changes in the prices do not impact the consumer’s purchasing behavior. When it comes to microwaveable food companies, there is a lot of competition. Therefore, it is essential that an effective pricing strategy is adopted:

The price elasticity of demand shows the relationship that exists between the price of a product and the quantity demanded. The PED can also be used to calculate the effects of the change in product price on the amount of the product demanded. The rate at which a change in price affects the quantity demanded varies considerably. The PED coefficient

The own-price elasticity is -1.289, which means that if the price goes up $1, the quantity will go down 1.289, and the revenue will drop.