...Learning Team Reflection: Production and Cost Analysis Heather Bosack, Iris Cost, Joey Piester, Jennifer Stephenson, and Girlean Taylor ECO/365 February 11, 2013 Jeffrey Lesson Learning Team Reflection: Production and Cost Analysis For our team there were many different experiences that were share in reference to the objectives for this week. Girlean explained that she understood that productivity is the amount of goods and services being produced and that the cost of production is the expenses that occur during production of those goods and services. She also explained that these expenses include fixed cost, variable cost and total cost. The team member shared that she works in security where services are provided to banking institutions. The company has a type of monopoly where they contract other companies for security services and this monopoly has altered competition on the supply side. In this case, the prices are a fixed so that the company neither make nor lose money. Jennifer shared how law of diminishing marginal productivity and the difference between fixed and variable cost both would be important to a big corporation such as Wal-Mart. At Wal-Mart headquarters managers from each location would look at the information to determine the schedule for each employee and how many employees would need to be working at a certain time. The managers would also need to look at all variables to change the cost of an item in a store. This team member shared that she looks...
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...Week 2 University of Phoenix Eco/GM 561 When a country decides on something that they are going to produce this product has to set them apart from other countries. A country bases their product on factors such as how much it costs them to produce it and if it sets them apart from the competition. A comparative advantage is the driving force of production for every country. In this paper we will discuss comparative advantage, abundant factors in the production of certain products, recommendations for the country to specialize in, and industries the country of my choice protects (if any). For the purpose of this paper I have chosen to explore the Netherlands and their comparative advantage. I chose this country for personal reasons as my father was born and raised in The Netherlands until he came to the United States at sixteen years of age. When you first think of the Netherlands you might think cheese or Tulips as they are well known for both of those products. The Netherlands has a high comparative advantage when it comes to skilled labor intensive work. First, let’s explore what comparative advantage is. Investopedia.com explains comparative advantage as “an economic law that demonstrates the ways in which protectionism is unnecessary in free trade. Comparative advantage argues that free trade works even if one partner in a deal holds absolute advantage in all areas of production- that is, one partner makes products cheaper, better and faster than its trading partner”...
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...Supply and Demand Simulation Allison Mullen Microeconomics 365 March 11, 2013 Vilma Vallillee Supply and Demand Simulation Macroeconomics looks at the economy as a whole, concentrating on factors such as interest rates, inflation, and unemployment (Colander, 2010). It also studies economic growth and the government’s role to moderate the harm caused by recessions. During the simulation government intervened and tried to set a price ceiling on two bedroom apartments to provide homes for those that were struggling in hard economic times. The simulation also talked about population trends and how they affect decisions in the marketplace. For instance, an increase in population caused demand for two-bedroom apartments to increase, but a change in preferences caused demand to increase. Microeconomics focuses on individual people and individual businesses (Colander, 2010). It analyzes individual entities or activities such as supply and demand in the market, and the effects of behaviors and decisions. The simulation gave two examples of microeconomic behavior as it explained how individuals react when faced with decisions about how to spend their money. It also stated that Atlantis was considered a monopoly because it has no housing development competitors nearby. Their profit incentives lead them to raise prices and lower output in order to get the most out of consumers. In determining the rental rate for Atlantis tenants it is important to understand that more...
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...Fundamentals of Macroeconomics Cleatus D. Payne ECO 372 July 18, 2013 Arnella Trent Part 1 Describe the following terms: Gross domestic product GDP is the market value price of good or product that a country pays during a certain time of the year. Real GDP is the output of countries products without measuring in inflation. Nominal GDP is where the market value of goods or products is higher than Real GDP. Unemployment rate is the rate of unemployed people who are faithfully seeking employment. Inflation rate is the rise in prices and the lack of being able to purchase products. Interest rate is the rate in which products are paid for at a different price depending on the rate given. Part 2 Economic activities: Purchasing of groceries, Massive layoff of employees and Decrease in taxes. The purchasing of groceries effects a household by the amount of groceries needed depending on the size of the family. The larger the family, the higher the grocery bills. This affects the government because of taxes being paid on the groceries the higher the taxes the less groceries a family may be able to purchase. Businesses are effective with prices rising less money being spent groceries that not an essential to a family. A massive layoff affects the household by no income no way to take care of the family. The government is effective by massive layoff because the government will have to pay unemployment. Businesses are affected because without sufficient employees...
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...Market Equilibration Process Paper ECO/561 June 7, 2012 Dr. Jill Trask Market Equilibration Process Paper Market equilibration can be accomplished when market price established through competition so the amount of good bought is equal to the number of goods sold. Supply and demand would be factors to change the market equilibrium. In the oil industry market equilibrium is determined by the cost of oil, competitor’s prices, and technology. “As a price falls, the quantity demand rises, and as a price rises, the quantity demanded falls” (McConnell, Brue, & Flynn, 2009, p. 47). Consumers travel constantly to go to work, school, or vacation. This travel requires the use of some form of transportation whether it is train, airplane, or automobile. The transportation modes use a form of fuel to move the vehicles. Certain periods increase the demand for fuel or decrease the demand, for example holiday weekends would increase the demand. When the price of fuel increases a traveler will see an increase in an airline ticket or a train ticket. If the prices for the airline or train ticket are too much the traveler may choose to drive instead to keep their cost down, When the fuels prices rises so does the commuter train tickets, causing some commuters to find alternate ways to work, such as carpooling. As the fuel prices decrease so do transportation costs allowing individuals to travel more often in their choice of transportations rather than the economical choice. As...
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...The first recommendation is based on the Keynesian perspective and addresses government spending and taxes. It is the advisement of the team that the President consider increasing spending for educational programs to unemployed workers to obtain higher paying positions after school. This will in turn take individuals that are not gainfully employed and allow them to learn a trade, go to a community college or obtain a higher-level degree. Lastly, according to the Keynesian perspective, it is strongly suggested that the President lower taxes for the middle class. This should increase the aggregate demand by freeing up cash for families to use. Expectations The U.S. Economy is made up of the following categories of Unemployment, Consumer Income, and Interest Rates. Based on these factors consumers have their own expectations of how the economy should be and the government based on the data that they have privy to have their own expectations of the U.S. economy. In order to get the expert opinions of the U.S. economy, we must look at each category’s projection. According the Bureau of Labor 2012-2022 employment projection report, the total employment rate will increase 10.8 percent during this period. In this report it indicates that the labor force will be a slow growth thus projecting the GDP to increase by 2.6 percent annually. This percentage is “slower than the 3 percent or higher rate often posted from the mid-1990s through mid-2000s”. (Bureau of Labor The first recommendation...
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...ECO 561 WEEK 2 COMPLETE A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=eco-561-week-2-complete Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION ECO 561 Week 2 Complete Learning Team Deliverable The team debated over three different cost or expense concepts in business economics. The first topic dealt with fixed and variable costs and how these costs related to supply and demand. Fixed costs are costs that will not vary regardless of the changing outputs and paid out even if the outputs are zero. On the other hand, variable costs are the cost that will vary based on the levels of outputs produced by the business and those costs changes directly with the level of outputs. Items such as raw materials and most labor cost are variable because they can change over time (McConnell, Brue & Flynn, 2009). Understanding both the fixed cost and the variable cost would help business get a better handle on the total cost associated with operating a business. In business economics, cost and knowing the effecting controllers, allows managers to adjust accordingly. Businesses overall, need to know where money is going, when and where they need to cut expenses, and when they need to produce more to offset the cost. As the demand for a product or service increase, the company would need to understand when it should increase its supply for that product or service. It seems simple, but there is much more that goes into increasing...
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...ECO 316 Week 3 DQ 2 This archive file of ECO 316 Week 3 Discussion Question 2 Should I Expect a Bail Out? contains: From Chapter 15, complete problem 19 (page 363): Suppose that you manage a small SL that has a net worth of -$50 million. You fear that within two years, regulators will discover that your firm is insolvent and will shut you down. You have two possible investment strategies: (a) continue to operate as you have been, offering market interest rates on CDs to finance mortgage loans, or (b) offer higher than market interest rates on CDs and use the increased funds to speculate in junk bonds and real estate. Your analysis tells you that strategy (a) has a 10% chance of losing $10 million and a 90% chance of gaining $20 million, with an expected return of $17 million. Strategy (b) has an 80% chance of losing $50 million and a 20% chance of gaining $75 million, with an expected return of -$25 million. What strategy should you follow? Why? What are the consequences of your choice? What should a regulator do in this situation? How might your behavior change if you expect a government bail out? Economics - General Economics Week 1 Should You Invest Short Term? - Week1 DQ1 ECO316 What are the implications of a U.S. policy to “bail out” firms and heavily subsidize the economy? How could such a policy create inflation and higher interest rates? If you have cash available should you wait until interest rates rise? Treasury Inflation Protection...
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...Axia College Material Appendix A Answer the following questions. 1. If the price of a good increases, what happens to the quantity demanded? When Prices increase people tend to buy less. 2. If the price of a good decreases, what happens to the quantity supplied? When prices decrease then so does the supply because they don’t want people to buy at the lower cost. 3. Does a change in price create curve shifts? Explain. Honestly I’m not sure; I would think that if a price goes up then yes it would but if a price went down it wouldn’t. Complete the following matrix. An example is provided. |Event |Market affected by event |Shift in supply, demand, or |Change in equilibrium (P&Q) | | | |both. Explain your answer. | | |Frozen orange crops in California |Orange juice |Supply (left)—Not as many |Price will increase and | | | |available oranges to offer |quantity will decrease. | | | |consumers. | | |Hurricanes in the Gulf Coast |Gulf Coast tourism |Demand (Left), less people will |Price will decrease and | | | |be likely to travel...
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...Supply and Demand Simulation ECO/365 Supply and Demand Simulation The supply and demand simulation included both microeconomics and macroeconomics concepts. The simulation focused on a property management firm, GoodLife Management, and its ability to adjust the levels of supply and demand of two-bedroom apartments in the Atlantis community. GoodLife Management was challenged with changes in population, tastes, income, and a price ceiling. As a result of these factors the firm had to strategize about shifts in the changes in supply and demand and determine the equilibrium price and quantity. The microeconomic principles from the simulation include the supply and demand of two-bedroom apartments and the affects of price. The simulation provided exercises on how to determine the number of apartments supplied, the population that demanded the apartments, and the appropriate price per unit at a given time considering market conditions. Microeconomics looks at the smaller picture and focuses on how individuals and firms make decisions based on economic forces. GoodLife Management had to consider how many apartments to supply and the price levels to charge for them to maximize profit (University of Phoenix, 2011, Week Two Simulation). Macroeconomics views the aggregate economy in terms of unemployment, growth, business cycles, and inflation. In the simulation, two macroeconomic concepts considered are the population growth in Atlantis and business cycles. GoodLife...
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...Supply and Demand Simulation ECO 365 May 14, 2012 Supply and Demand Simulation With my simulation, I chose to have a vacancy rate of 5 % which maximized revenues at $ 1.81 million. When facing a falling or rising demand, I aimed for equilibrium price as determined by the intersection of both the supply and demand curves. When a price ceiling was implemented, I could only supply a limited number of apartments at the predetermined price. The market forces of demand and supply are the best way to determine optimal prices for both producers and consumers. There are several factors that cause changes in supply and demand. One significant factor is price increases or decreases. In this particular simulation, incremental decreases in rental prices caused a significant increase in the demand for houses. Similarly, an increase in price of two bedroom apartments caused the demand for houses to increase significantly. Suppliers were naturally willing to supply more homes at increased prices but fewer when rents were reduced. As the population of Atlantis began to rise from the expansion of tech companies and the like, the demand for housing grew significantly. This caused rental prices to rise as demand began to outweigh supply. Consequentially, suppliers became eager to offer a greater supply of units at a lower rental cost. These basic laws of supply and demand as well as the determining pricing factors are examples of microeconomics at play. Consumer preferences and...
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...Fundamentals of Macroeconomics According to Colander (2013) gross domestic product, or GDP, “is the total market value of all final goods and services produced in an economy in a one-year period” (p.545). A major component of our GDP is groceries. Grocery purchases can have a tremendous effect on the economy and thus our GDP. The purchaser exchanges currency for their chosen items. The government gets a portion of the proceeds in taxes. The government then uses this tax revenue to fund the government. A large portion of the tax revenue funds entitlement programs such as welfare. Additionally tax revenue pays the salaries of government employees. Recipients of funds from entitlement programs as well as wage earning government employees in turn use those dollars on various expenditures that may include buying groceries. On the other side of equation the revenue the store generates from sales pays the salaries of its employees which starts the cycle over again. Additional monies are given to vendors of the products the store purchase for retail sales thus funding those companies, their employees and vendors with most everyone at every turn paying taxes. Prices tend to rise as spending increases. It is in essence a continuous cycle or movement of funds from one person or entity to another. During a recession households may reduce their spending on items such as grocery purchases by limiting their spending to the few items they deem necessary. When people start to...
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...relocated, or changed. If that is the case, might I recommend searching the Internet or your university library for the article title and author of the content. At the end, I wish you a happy learning”. • Also if you want the customized work as per your needs then please do let us know. We’ll give our best efforts to provide you the customized assignments as earliest as possible. • In case of any complaints or feedback please do write to us at studentwhiz@gmail.com • Looking forward to hear from you soon..!! 1.Purely competitive firms increase total revenue by A. increasing production B. decreasing production C. increasing price D. decreasing price 2.What are two ways for a competitive firm to determine the optimal level of production, that is, the level of production that will maximize profit or minimize losses? A. Comparing total revenue to total cost or marginal revenue to marginal costs B. Comparing average revenue to average costs or marginal revenue to marginal costs C. Comparing average variable costs to price or marginal revenue to price D. Comparing total revenue to average variable costs or price to average variable costs 3.Suppose that a firm determines that its marginal revenue is greater than its marginal cost, it would be better to A. increase production B. decrease...
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...* * * * * * * * * * Supply & Demand Simulation * Anthony Ford Jr. * ECO-365 * APRIL 14th, 2014 Joe Krupka * * * * * * * * * * Introduction Microeconomics involves the study of individual economic agents and individual markets. Macroeconomics involves the study of economic aggregates. Supply and demand is the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price. The concepts were well displayed during the supply and demand simulation. For example, the competition that Oakridge Builders provided was a microeconomic concept. The same can be said for GoodLife having a monopoly on selling apartments. Economic competition takes place in markets--meeting grounds of intending suppliers and buyers. Typically, a few sellers compete to attract favorable offers from prospective buyers. This is why it is a microeconomic concept. * A monopoly is an enterprise that is the only seller of a good or service. In the absence of government intervention, a monopoly is free to set any price it chooses and will usually set the price that yields the largest possible profit. Just being a monopoly need not make an enterprise more profitable than other enterprises that face competition: the market may be so small that it barely supports one enterprise (University of Phoenix, 2010). * A price ceiling is a legally...
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... * Nominal GDP- A gross domestic product (GDP) figure that has not been adjusted for inflation. * Unemployment Rate - The percentage of the total labor force that is unemployed but actively seeking employment and willing to work. * Inflation Rate - The rate at which the general level of prices for goods and services is rising, and, consequently, purchasing power is falling. * Interest Rate - The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). Running head: Fundamentals of Macroeconomics Paper Fundamentals of Macroeconomics Paper – Part 2 Fundamentals of Macroeconomics Paper – Part 2 Purchasing of groceries affects the households, government and businesses. The households demand for the groceries is determined by the need and the prices at which the groceries are sold at any given time. Purchasing of groceries satisfies the consumer need for consuming the commodity. In addition, the consumer disposable income is reduced therefore the consumer is constrained in consuming other commodities. On the other hand, businesses are also...
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