×

### Let's log you in.

or

Don't have a StudySoup account? Create one here!

×

### Create a StudySoup account

#### Be part of our community, it's free to join!

or

##### By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

## ECO550 - Assignment #2

by: tophomework Notetaker

21

0

0

# ECO550 - Assignment #2

Marketplace > ECO550 Assignment 2
tophomework Notetaker
AU
GPA 3.8

No professor available

### Almost Ready

These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

### Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

×
Unlock Preview

### Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

## About this Document

ECO550 - Assignment #2
COURSE
PROF.
No professor available
TYPE
Study Guide
PAGES
0
WORDS
KARMA
50 ?

## Popular in Department

This 0 page Study Guide was uploaded by tophomework Notetaker on Sunday November 15, 2015. The Study Guide belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 21 views.

×

## Reviews for ECO550 - Assignment #2

×

×

### What is Karma?

#### You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 11/15/15
1 Brie y describe the details of the fictitious business that you created for this assignment Betsy s Baubles is a headband manufacturing firm located in Dover Delaware The currently employees 100 workers and it produces 6000 units of output per month It staffs operations with 20 working days per month Its employees earn a daily wage of 70 and the cost of its daily output is 32 The aggregate cost of other variable inputs is 2000 per day The marginal cost of the last unit is 30 2 Assess the current environmental scan factors that are relevant to the decision making process Determine the factors that will have the greatest impact on plant operations and management s decision to continue or discontinue operations Provide a rationale for your determination Betsy s Baubles operates in what can be most closely described as pure competition market structure characterized by a large number of buyers and sellers of a homogeneous nondifferentiated product Entry and exit from the industry is costless or nearly so Information is freely available to all market participants and there is no collusion among firms in the industry homogeneous nondifferentiated product Entry and exit from the industry is costless or nearly so Information is freely available to all market participants and there is no collusion among firms in the industry McGuigan 2012 p 352 Because the conditions for perfect competition are strict there are few if any perfectly competitive markets Given this market structure Betsy s Baubles is a price taker because of sheer magnitude of hair accessory manufacturers The amount of perfect substitutes for the product forces the firm to sell its output at the going market rate In a perfectly competitive market a firm39s demand curve is perfectly elastic Due to such high price elasticity any shift in price will cause buyers to choose other manufactures products Optimum consulting has been called in to assist the firm in making recommendations to turn around current financial position Where total costs exceed total revenue 3 Evaluate the nancial performance of the company using the information provided in the scenario Consider all the key drivers of performance such as company profit or loss for both the short term and long term and how each factor in uences managerial decisions Be sure to show the calculations that helped you reach your conclusions 4 Recommend how the company can improve its profitability to deliver more value to its stakeholders Then develop a brief plan to implement the recommendations 5 Assess the circumstances in which the company should discontinue operations and how management should react when confronted with these circumstances Provide a rationale with your response References McGuigan J R Moyer R Camp Harris F H D 2008 Managerial economics Applications strategy and tactics 12th ed Mason OH South Western Cengage Learning

×

×

### BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.

×

### You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

## Why people love StudySoup

Bentley McCaw University of Florida

#### "I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Jennifer McGill UCSF Med School

#### "Selling my MCAT study guides and notes has been a great source of side revenue while I'm in school. Some months I'm making over \$500! Plus, it makes me happy knowing that I'm helping future med students with their MCAT."

Jim McGreen Ohio University

Forbes

#### "Their 'Elite Notetakers' are making over \$1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!
×

### Refund Policy

#### STUDYSOUP CANCELLATION POLICY

All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email support@studysoup.com

#### STUDYSOUP REFUND POLICY

StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here: support@studysoup.com

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to support@studysoup.com

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.