Many suppliers experience economies of scale as output expands, which implies that long-run average costs are falling. At very high levels of production, however, many firms are likely to experience diseconomies of scale. Why do firms experience diseconomies of scale as they increase production volume? How might firms avoid experiencing diseconomies of scale and what does the long-run average cost curve look like when diseconomies of scale exist?
You have learned a good deal about production costs and profit in this unit. You have also learned that accountants and economists calculate profit differently. • Discuss the difference between how accountants and economists calculate profit giving example of costs each might use in this calculation. • Will accounting profit and economic profit always be different? • When might accounting profit and economic profit be the same?
http://blogs.wsj.com/economics/2014/02/21/federal-reserve-2008-a-timeline-of-fed-actions-and-financial-crisis-events/ http://thinkprogress.org/economy/2013/03/23/1765481/how-fed-policy-could-leave-the-country-at-the-mercy-of-another-recession/ Write a short essay (no longer than 2 pages) explaining 1)How monetary policy can influence aggregate demand 2)What the Fed was trying to do during the Great Recession with its activist monetary intervention, particularly Quantitative Easing; 3)How the Fed’s response would have been different had it instead followed a passive policy response. Be specific about what its course of action would had been if the policy response had been passive, and what the expected impacts would have been.
Write a three to four (3-4) page paper in which you:
Identify at least four (4) key points of a relevant economic article from either the Strayer Library or a newspaper. The article must deal with any course concepts covered in Weeks 1-8. Apply one (1) of the following economic concepts (supply, demand, market structures, elasticity, costs of production, GDP, Unemployment, inflation, aggregate demand, and aggregate supply) to the key points that you highlighted in Question 1. Explain how the concept that you identified in Question 2 could affect the U.S. economy. In your concluding paragraph, state whether you agree or disagree with the economic article identified in Question 1. Provide a rationale for the response. Use at least three (3) quality resources in this assignment with one (1) being your article. Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are:
Analyze the dynamics of supply and demand to anticipate market equilibrium. Analyze the elasticity of demand and supply and its importance, and the effect of taxes or other public policies. Describe the impact of various forms of competition on business operations with emphasis on perfect competition. Use technology and information resources to research issues in principles of economics.\
Describe an industry that would meet the conditions of a perfectly competitive industry: 1. There are many buyers and sellers so neither side of the market has market power. 2. The product provided to the market is identical across suppliers. 3. There are no barriers to entry.
How do individual firms in a perfectly competitive industry respond to an increase in the market demand for the product? Would advertising by individual firms in this type of market provide any benefits?
Topic 2
In order to maximize profits, monopolies produce where: MARGINAL REVENUE = MARGINAL COST < MARKET PRICE. How does this compare to the profit maximization condition for perfectly competitive markets, and how do these differences contribute to deadweight loss in a monopoly market? Can you think of reasons why a monopoly might decide on their own to increase production and lower prices to earn an acceptable profit rather than maximize profits?
Discuss the differences between unemployment and underemployment and give examples of each. Which do you think is a more serious problem for the economy? How might underemployment be addressed through government policy?
Topic 2
In this unit, you discussed some of the problems associated with inflation. List one of these problems and describe a situation in which you encountered this problem.
Please have both discussion topics done by 1/6 and the attached assignment done by 1/11. Thanks
In 2008, Federal Reserve Bank Chairman, Ben Bernanke, and U.S. Treasury Secretary, Henry Paulson, responded to the financial crisis by intervening in financial markets in unprecedented ways. Do you think this intervention was necessary? What are the consequences of this intervention? What might have happened if they had not intervened?
Topic 2
There is always debate regarding the structure of the current income tax system in the U.S. Many opponents of the current system argue that under its current structure, many wealthy households are able to avoid taxes and for most households, the tax system is simply too complicated and confusing. One solution that has been proposed is the “flat tax.” What are the benefits and detriments of replacing the current income tax system with a flat tax system? Who benefits and who might be harmed? What implications does the flat tax system have for tax preparation companies such as H&R Block?
Please ensure both Topics are complete by next Wednesday 1/13 and you have additional time for the attached assignment. Thanks.
Globalization is becoming very important in economic discussions. While some politicians favor protectionist policies because they feel these policies protect domestic producers, others claim free trade increases economic activity and has advantages for the country as a whole. Describe a recent foreign purchase. Do you think it is better to source from overseas or should tariffs be in place to protect American industries? Why or why not?
Topic 2
The Economist regularly publishes the Big Mac index to examine the validity of purchasing power parity. If purchasing power parity holds, a consumer should be able to take the same amount of money required to buy a Big Mac in the U.S. and buy a Big Mac in any other country. What are the reasons purchasing power parity may not hold? If the U.S. dollar depreciates against the euro and purchasing power parity holds, would a Big Mac in Europe become more or less expensive? Why? If purchasing power parity doesn’t hold, does an American tourist in Europe pay more or less for a Big Mac? Why?
Please ensure the attached assignment is due by next wednesday..thanks
(Long-Term Productivity Growth) Suppose that two nations start out in 2013 with identical levels of output per work hour--Say, $100 per hour. In the first nation, labor productivity grows by 1 percent per year. In the second, it grows by 2 percent per year. Use a calculator or a spreadsheet to determine how much output per hour each nation will be producing 20 years later, assuming that labor productivity growth rates do not change. Then, determine how much each will be producing per hour 100 years later. what do your results tell you about the effects of small differences in productivity growth rates?
Create a Word Document, for this assignment, you will practice creating visual displays of data. To complete this assignment, download the data file found under Resources, and perform the following: 1. Create a table of descriptive statistics for the time data. At a minimum, include the mean, variance, standard deviation, skewness, kurtosis, mode, minimum, maximum, range, and count. 2. Create a histogram describing the time data. 3. Create a pie chart describing the order type data. Assemble your results into a single Word document that includes figures (graphics) for each of the above, and submit in the assignment area. Be sure that each table and figure is formatted and captioned in accordance with APA (6th edition) style and format. Refer to the scoring guide prior to submission to ensure you meet all evaluation criteria.
The analyses should be in essay form (no bullets), and as comprehensive and comprehensible as possible given the page limit. They should be guided by questions listed in this syllabus for each case.
What distinguished the excellent papers...more critical thinking, application to Business strategy, implications of the article and external source, and less summarizing.
Horizontal M & A and Wrap-up
Case: Mellon Financial and the Bank of New York Readings: MCS, chapters 10 and 11
Class Preview: This is an interesting horizontal acquisition that predicts incremental economic value for the combined firms. Again, we’ll use the M & A framework in Chapter 10. To apply the framework cogently, we need an understanding of the economics that underpin the custody business, especially its huge scale economies. We’ll look at how the easy-to-predict benefits of the deal smooth the resolution of conflicts impeding it and then we’ll outline the alternatives to the deal, which are generally unattractive.
Questions for Mellon – B of NY:
1. What was the strategic rationale behind the merger of Mellon and Bank of New York? Think about the competition, the alternatives, the timing, the potential integration benefits and plan. 2. What are the impediments to the deal? 3. Is the deal worth doing given these barriers? If so, why?
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