Eco 550 Assignment 2 Is Due At The End Of The Week

Eco 550 Assignment 2the Assignment Is Due At The End Of Week 6please

Assume that your inverse demand equation from Assignment 1 is written as: P = 24.52 - 0.024Q. Then, the marginal revenue (MR) equation for this demand equation will become: MR = 24.52 – 0.048Q. Also assume that the price (P) found in Assignment 1 was = $9.25.

Modify the cost functions given in the syllabus as follows: TC = 160 + 10 Q + 0.0063Q². VC = 10Q + 0.0063Q². MC = 10 + 0.0126Q.

Continue with answering all questions as instructed below. Make sure to use the MR = MC rule to find the firm’s profit-maximizing price and output level. Compare the profit-maximizing price which you find with the above-mentioned $9.25 for answering the related question.

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

Write a six to eight (6-8) page paper in which you:

1. Outline a plan that will assess the effectiveness of the market structure for the company’s operations. Note: In Assignment 1, the assumption was that the market structure [or selling environment] was perfectly competitive and that the equilibrium price was to be determined by setting Q_D equal to Q_S. You are now aware of recent changes in the selling environment that suggest an imperfectly competitive market where your firm now has substantial market power in setting its own “optimal” price.
2. Given that business operations have changed from the market structure specified in the original scenario in Assignment 1, determine two (2) likely factors that might have caused the change. Predict how this change would impact business operations in the new market environment.
3. Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the cost functions below. Suggest substantive ways in which the company may use this information for decision-making in both the short-run and the long-run.
4. Determine circumstances under which the company should discontinue operations. Suggest key actions for management, considering that the firm’s price must cover average variable costs in the short run and average total costs in the long run to continue operations.
5. Suggest one (1) pricing policy that will enable the company to maximize profits, with a rationale. Use the inverse demand equation, total revenue, and marginal revenue functions to determine your optimal price and output, then compare these with previous values.
6. Outline a plan for evaluating the company’s financial performance, considering all key drivers such as short-term and long-term profit/loss, and how these influence managerial decisions. Calculate short-term profit at the new optimal price and output, and long-term profit assuming a competitive environment.
7. Recommend two (2) actions to improve profitability and create value for stakeholders, alongside a brief implementation plan.
8. Use at least five (5) credible academic resources to support your analysis. Follow APA formatting for citations and references, include a cover page with the title, student’s name, professor’s name, course, and date. The cover and references are not counted in the page length.