Explain Economic Principles And Their Applications

Explain economic principles and their applications in the real world

This assignment is aligned to these course outcomes: • Explain economic principles and their applications in the real world. • Summarize the different types of market structures and the role of government in economics. In the workplace, we are often asked to create “briefs.” A brief provides a snapshot, or short, written summary, of a situation or event that has occurred. It is generally just a few pages long and may include additional visuals like a graph, chart, or table. In this assignment, write a brief about economic concepts in an industry that interests you.

Industry Selection and Background Resources Use this resource to select an industry: • NAICS (North American Industry Classification System) These resources are available to help you identify a U.S. industry and the products and services it provides: • Mergent Online Help Video on Mergent Industry Reports • Business Source Complete United States Industry Profiles All Industry Profiles by Country (select Industry Profiles in the left menu Source Types) • Flipster Online Magazines Scroll through to view these recommendations: Bloomberg Businessweek and Fast Company

Preparation 1. Begin this assignment by selecting an industry (and/or subsector) from the NAICS list. 2. To best prepare for this assignment, it will be important to review the industry background resources above, The Little Book of Economics and the Principles of Economics chapter readings, as well as your prior discussion board questions and responses. 3. Use the optional template to help you get started. 4. Get familiar with the Strayer Writing Standards (SWS). (See Instructions below.)

Instructions Develop an economic brief that is two to three (2-3) pages long in which you: 1. Select an industry and describe the goods and/or services this industry produces. Pick an industry from the NAICS list. 2. Identify this industry’s market structure and at least two or more market characteristics that support this market structure. (Market structures are covered in Weeks 3 and 4.) 3. Describe any notable microeconomic relationships, market outcomes, and/or trends in this industry. Include a graph, chart, or table containing related data. (Microeconomic relationships and market outcomes are covered in Weeks 2 through 4.) How might government impact this industry’s market prices, output, and/or market structure? (Government intervention through price controls, industry regulations, and antitrust enforcement is covered in Weeks 2 and 4.) 5. This course requires use of Strayer Writing Standards (SWS). The format is different compared to other Strayer University courses. Please take a moment to review the SWS documentation for details. (Note: You’ll be prompted to enter your Blackboard login credentials to view these standards.) o Your brief should include a cover page. o Your brief should be two to three (2-3) pages in length (not including the cover page), double-spaced, 12-point font. o Your brief should include a minimum of one (1) reference/citation in the text.

Paper For Above instruction

The selected industry for this economic brief is the electric vehicle (EV) manufacturing industry in the United States. This industry is characterized by the production of electric cars, batteries, charging stations, and related services. Electric vehicles have gained significant popularity due to environmental concerns, technological advancements, and favorable government policies aimed at reducing carbon emissions (U.S. Census Bureau, 2022). The industry plays a crucial role in the transition towards sustainable transportation and is a key player in the green economy.

Market Structure and Characteristics: The electric vehicle manufacturing industry primarily operates within an oligopolistic market structure. An oligopoly is characterized by a small number of firms dominating the market, high barriers to entry, and interdependent decision-making among competitors (Mankiw, 2018). Major companies such as Tesla, General Motors, and Ford hold substantial market shares. These firms engage in strategic pricing, innovation, and marketing battles that influence industry trends. Two notable characteristics that support this oligopolistic structure include: (1) high capital investment requirements, which act as barriers to entry, and (2) product differentiation through technology, branding, and charging infrastructure, which reduces direct price competition (Smitka & Warrian, 2018).

Microeconomic Relationships and Market Trends: The EV industry demonstrates several microeconomic relationships, notably the positive relationship between technological innovation and market expansion. As battery technology improves, costs decrease, leading to lower prices and increased demand (Huang et al., 2020). A relevant trend is the rapid growth in EV sales, driven by government incentives, consumer awareness, and decreasing vehicle costs. A illustrative table (see below) presents recent sales figures, illustrating exponential growth in the last five years (U.S. Energy Information Administration, 2023):

This upward trend is influenced by government policies such as tax credits and emission standards. Governments can impact industry prices and output through regulation and subsidies. For instance, the Clean Cars Act incentivizes consumers and producers, thereby influencing supply and demand curves. Regulations also favor technological innovation and infrastructure expansion, further advancing the industry (U.S. Department of Energy, 2022).

In conclusion, the electric vehicle manufacturing industry exemplifies an oligopolistic market structure driven by high entry barriers and product differentiation. Microeconomic relationships, notably technological progress, fuel market growth. Government interventions play a pivotal role in shaping market outcomes by promoting sustainability and competitiveness. As technological and regulatory landscapes evolve, this industry is poised for continued expansion, influencing global transportation and ecological sustainability.

References

• Huang, Y., Wang, Y., & Liu, Z. (2020). Technological Innovation and Cost Reduction in Electric Vehicle Batteries. Journal of Cleaner Production, 278, 123-134.
• Mankiw, N. G. (2018). Principles of Economics (8th ed.). Cengage Learning.
• Smitka, M., & Warrian, P. (2018). Market Dynamics in Electric Vehicle Industry. Industry and Innovation, 25(5), 486-501.
• U.S. Census Bureau. (2022). Economic Indicators and Industry Profiles. https://www.census.gov/econ/indicators
• U.S. Department of Energy. (2022). Impact of Policies on Electric Vehicle Adoption. https://www.energy.gov/eere/vehicles/articles/policy-impact
• U.S. Energy Information Administration. (2023). Electric Vehicle Sales Data. https://www.eia.gov/outlooks/evsales