Operation Decision, assignment help task

Operation Decision, assignment help

Order ID	53563633773
Type	Essay
Writer Level	Masters
Style	APA
Sources/References	4
Perfect Number of Pages to Order	5-10 Pages

Description/Paper Instructions

 

Question Description
Assignment 2: Operations Decision

Using the regression results and the other computations from Assignment 1, determine the market structure in which this frozen, low-calorie microwavable food company now operates.

ECO550- Assignment 1(demand estimation.docx

In assignment #1, the company estimated a demand curve and used a marginal cost curve as its supply curve. You determined the equilibrium in the market where P =MC [or Qs = Qd]. You calculated the various elasticities using the estimated demand at its current price of 500 cents. While not required, if you look at the own price elasticity at the equilibrium price and quantity solved for in Assignment #1 you will notice a problem for the firm if it thinks it is operating in a competitive market.

Now that you know that the firm faces a downward sloping demand curve and that it has pricing power, you are being asked to rethink how the firm should behave in the market as it actually used its pricing power to determine the profit maximizing price and output in this assignment.

1. Use the Internet to research two (2) leading competitors in the low-calorie microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within this industry (within the USA and worldwide). Use the IBIS Report for the Frozen Food Production Industry (SIC Code 31141) to be provided by your instructor.

===è Please read the attached IBIS report on Frozen Food Industry in U.S.

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. 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 QD equal to QS. 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.

===è See the attached spreadsheet

Assignment 2x.xls

Analyze the short run and long cost functions for the low-calorie microwaveable food company given the cost functions below and suggest substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long-run.

TC = 160,000,000 + 100Q + 0.0063212Q2

· ===è So,

o TFC = 160,000,000

o TVC = 100Q + 0.0063212Q2

o MC= 100 + 0.0126424Q

More specifically:

a. Determine the Average Total Cost function (ATC), AVC, and AFC

· ===èSee spread sheet for the calculation of Q* = 13,611

· ===èATC= TC/Q = (160,000,000)/Q + 100 + 2 * 0.0063212Q = 1,348

· ===èAVC= TVC/Q = 0.71 = 186.04

· ===èAFC= TFC/Q = 1,175.49

b. Determine the quantity (Q) associated with minimum ATC.

· ===è See spread sheet for the calculation

· ===èATC is minimized when ATC = MC

· Determine the minimum value of ATC

· ===èATC = 736

· ===èRemember, for a firm to be profitable, the product’s price (P) must be greater than its average total cost (ATC) at the optimal level of output Q*.

2. Suppose the business operations have now changed from the market structure analyzed in the activities required for the first assignment due to this new data about costs. Determine two (2) likely factors that might have caused the changed behavior. Predict the primary manner in which this change would likely impact business decisions in the new market environment.

· ===è Market structure characteristics

Week 5.1-Market Structure.ppt

· ===è The change in market structure from perfect competition to monopolist competition implies that the firm is now has monopoly power i.e., it has some control over its own price. As such, the rule of profit maximization is still MR=MC, however, since the demand is downward sloping P>MR, the firm can now make above normal profit.

· ===èThere many factors that may have caused the change in the type of market structure. The most significant factor of change is the ability of the firm to differentiate its products from its rivals.

3. Analyze the major short-run and long-run production and cost functions implied by this new cost data for the frozen, low-calorie microwaveable food company. Use the information contained in the IBIS report. Suggest substantive ways in which the frozen, low-calorie food company may use this information in order to make decisions in both the short-run and the long run.

· ===èPlease the attached theoretical short-run cost and long-run cost analysis and read the information contained in the IBIS report.

Assignment 2-Frozen Food Production in the US industry report.pdf

Assignment 2-SpecializedIndustryReportList.pdf

4. Determine the possible circumstances under which the company should discontinue operations. While no specific fixed or total cost data are provided, use the newly provided cost data above and your knowledge from the textbook on the relation of fixed and variable costs to revenue to develop estimates that might suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response.

· ===èTo be profitable, the firm’s product’s price (P) must be greater than its average total cost (ATC) at the optimal level of output (Q) i.e., P>ATC.

· ===èA business discontinues its operations in the short-run if P>AVC or in the long-run P>ATC. So, the shutdown ruleis P < AVC

5. Suggest one (1) pricing policy that will enable your frozen, low-calorie microwavable food company to maximize profits. Provide a rationale for your suggestion that will involve comparison of the first assignments two possible price and quantity pairs with the new optimum presented here in Assignment #2

· ===èRegardless of type of market structure, the profit-maximization level of output is always achieved at the point where MC=MR The significant feature of perfect competition is the lack of barriers to entry resulting in a large number of small firms producing identical products. In such a market structure no single firm has the ability to influence the market price so firms are price takers. The significant feature in a monopolistic competition is product differentiation based on physical characteristics, location, and time. Product differentiation gives firms market power and hence more options in pricing practices such as randomized pricing, block pricing, two-part pricing, commodity bundling, peak-load pricing, cross subsidies, premium pricing, cost/plus pricing, penetration pricing, transfer pricing, etc.

6. Outline a plan, (based on the original information provided in the first assignment along with the IBIS report industry cost data for the firm), that the company could use in order to evaluate its financial performance. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

o Using the price and output levels generated in part 5, calculate the short run profit,

o Using the output level generated in part 5, cost data in part 3, and assuming a very competitive market, calculate profit in the long run.

7. Recommend two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders in line with the recent history and forecast future behavior for the Frozen Food Production Industry [SIC Code 31141] as outlined in the IBIS report. Outline, in brief, a plan to implement your recommendations.

8. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.

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.

Points: 300

Assignment 2: Operations Decision

Criteria

Unacceptable

Below 70% F

Fair

70-79% C

Proficient

80-89% B

Exemplary

90-100% A

1. Outline a plan that will assess the impact of the market structure/cost data for the company’s operations.

Weight: 10%

Did not submit or incompletely outlined a plan that will assess the impact of the market structure/cost data for the company’s operations.

Partially outlined a plan that will assess the impact of the market structure/cost data for the company’s operations.

Satisfactorily outlined a plan that will assess the impact of the market structure/cost data for the company’s operations.

Thoroughly outlined a plan that will assess the impact of the market structure/cost data for the company’s operations.

2. Suppose the business operations have now changed from the market structure specified in the 1st assignment results as a result of the new cost data and demand understanding. Determine two (2) likely factors that might have caused the change. Predict the primary manner in which this change would likely impact business operations in the new market environment.
Weight: 10%

Did not submit or incompletely supposed the business operations have now changed from the market structure specified in the 1st assignment results. Did not submit or incompletely determined two (2) likely factors that might have caused the change. Did not submit or incompletely predicted the primary manner in which this change would likely impact business operations in the new market environment.

Partially supposed the business operations have now changed from the market structure specified in the 1st assignment results. Partially determined two (2) likely factors that might have caused the change. Partially predicted the primary manner in which this change would likely impact business operations in the new market environment.

Satisfactorily supposed the business operations have now changed from the market structure specified in the 1st assignment results. Satisfactorily determined two (2) likely factors that might have caused the change. Satisfactorily predicted the primary manner in which this change would likely impact business operations in the new market environment.

Thoroughly supposed the business operations have now changed from the market structure specified in the 1st assignment results. Thoroughly determined two (2) likely factors that might have caused the change. Thoroughly predicted the primary manner in which this change would likely impact business operations in the new market environment.

3. Analyze the major short-run and long-run production and cost functions for the low-calorie microwaveable food company in light of the new data. Suggest substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long run.

Weight: 10%

Did not submit or incompletely analyzed the major short-run and long-run production and cost functions for the low-calorie microwaveable food company. Did not submit or incompletely suggested substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short run and the long run.

Partially analyzed the major short-run and long-run production and cost functions for the low-calorie microwaveable food company. Partially suggested substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short run and the long run.

Satisfactorily analyzed the major short-run and long-run production and cost functions for the low-calorie microwaveable food company. Satisfactorily suggested substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short run and the long run.

Thoroughly analyzed the major short-run and long-run production and cost functions for the low-calorie microwaveable food company. Thoroughly suggested substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short run and the long run.

4. Determine the possible circumstances under which the company should discontinue operations. Suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response.

Weight: 15%

Use the IBIS Report data.

Did not submit or incompletely determined the possible circumstances under which the company should discontinue operations. Did not submit or incompletely suggested key actions that management should take in order to confront these circumstances. Did not submit or incompletely provided a rationale for your response.

Partially determined the possible circumstances under which the company should discontinue operations. Partially suggested key actions that management should take in order to confront these circumstances. Partially provided a rationale for your response.

Satisfactorily determined the possible circumstances under which the company should discontinue operations. Satisfactorily suggested key actions that management should take in order to confront these circumstances. Satisfactorily provided a rationale for your response.

Thoroughly determined the possible circumstances under which the company should discontinue operations. Thoroughly suggested key actions that management should take in order to confront these circumstances. Thoroughly provided a rationale for your response.

5. Suggest and analyze one (1) pricing policy that will enable your low-calorie microwavable food company to maximize profits. Provide a rationale for your suggestion.

Weight: 10%

Did not submit or incompletely suggested and analyzed one (1) pricing policy that will enable your low-calorie microwavable food company to maximize profits. Did not submit or incompletely provided a rationale for your suggestion.

Partially suggested and analyzed one (1) pricing policy that will enable your low-calorie microwavable food company to maximize profits. Partially provided a rationale for your suggestion.

Satisfactorily suggested and analyzed one (1) pricing policy that will enable your low-calorie microwavable food company to maximize profits. Satisfactorily provided a rationale for your suggestion.

Thoroughly suggested and analyzed one (1) pricing policy that will enable your low-calorie microwavable food company to maximize profits. Thoroughly provided a rationale for your suggestion.

6. Outline a plan, based on the information provided in the 1st assignment results and the new data, that the company could use in order to evaluate its financial performance. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

Weight: 10%

Did not submit or incompletely outlined a plan, based on the information provided in the 1st assignment results that the company could use in order to evaluate its financial performance. Did not submit or incompletely considered all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

Partially outlined a plan, based on the information provided in the 1st assignment results that the company could use in order to evaluate its financial performance. Partially considered all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

Satisfactorily outlined a plan, based on the information provided in the 1st assignment results that the company could use in order to evaluate its financial performance. Satisfactorily considered all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

Thoroughly outlined a plan, based on the information provided in the 1st assignment results that the company could use in order to evaluate its financial performance. Thoroughly considered all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

7. Recommend two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders. Outline, in brief, a plan to implement your recommendations.

Weight: 10%

Did not submit or incompletely recommended two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders. Did not submit or incompletely outlined, in brief, a plan to implement your recommendations.

Partially recommended two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders. Partially outlined, in brief, a plan to implement your recommendations.

Satisfactorily recommended two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders. Satisfactorily outlined, in brief, a plan to implement your recommendations.

Thoroughly recommended two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders. Thoroughly outlined, in brief, a plan to implement your recommendations.

8.5 references
Weight: 5%

No references provided

Does not meet the required number of references; some or all references poor quality choices.

Meets number of required references; all references high quality choices.

Exceeds number of required references; all references high quality choices.

9.Writing Mechanics, Grammar, and Formatting
Weight: 5%

Serious and persistent errors in grammar, spelling, punctuation, or formatting.

Partially free of errors in grammar, spelling, punctuation, or formatting.

Mostly free of errors in grammar, spelling, punctuation, or formatting.

Error free or almost error free grammar, spelling, punctuation, or formatting.

10.Appropriate use of APA in-text citations and reference section
Weight: 5%

Lack of in-text citations and / or lack of reference section.

In-text citations and references are provided, but they are only partially formatted correctly in APA style.

Most in-text citations and references are provided, and they are generally formatted correctly in APA style.

In-text citations and references are error free or almost error free and consistently formatted correctly in APA style.

11.Information Literacy / Integration of Sources
Weight: 5%

Serious errors in the integration of sources, such as intentional or accidental plagiarism, or failure to use in-text citations.

Sources are partially integrated using effective techniques of quoting, paraphrasing, and summarizing.

Sources are mostly integrated using effective techniques of quoting, paraphrasing, and summarizing.

Sources are consistently integrated using effective techniques of quoting, paraphrasing, and summarizing.

12.Clarity and Coherence of Writing
Weight: 5%

Information is confusing to the reader and fails to include reasons and evidence that logically support ideas.

Information is partially clear with minimal reasons and evidence that logically support ideas.

Information is mostly clear and generally supported with reasons and evidence that logically support ideas.

Information is provided in a clear, coherent, and consistent manner with reasons and evidence that logically support ideas.

 

RUBRIC QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points:  Student failed to submit the final paper. 20 points out of 50:  The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50:  The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately.  Elements of the required response may also be lacking. 40 points out of 50:  The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples.  The answer is complete. 50 points:  The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples.  No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points:  Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points:  Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points:  References to scholarly sources are occasionally given; many statements seem unsubstantiated.  Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points:  Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented.  APA 6th Edition is used with only a few minor errors.  There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points:  Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented.  APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points:  Student failed to submit the final paper. 5 points out of 20:  The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors  10 points out 20:  The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20:  The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points:  The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points:  Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements.  The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
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