Kibata

Sign In

Our Services

Get 15% Discount on your First Order

Order Now
[rank_math_breadcrumb]

Managerial Economics

Assessment: The Homework Assignment

Course: MBA-6212, Summer II, 2024

Instructor: Dr. Ibrahim Abou-Saad

Due: August 1, 2024, at 11:59 PM

Goals:

1. Students fully understand the principles of managerial economics that apply to typical business firms.

2. Students learn how to use the foundation elements of microeconomics in managing the business firm’s

operations based on optimal economic behaviors.

3. Students apply their learned theoretical concepts in managerial economics in a class assignment that simulates

alternative potentials in the business reality.

Student Learning Objective (SLO): Design an economic framework for an efficient advertising campaign for

business firms with market power.

Assessment: The Homework Assignment.

Students are asked to use their learning in the course regarding the economically efficient advertising campaigns

to work on this homework assignment.

The students need to evaluate the information provided in the homework assignment to design tow different

diagrams that represent a full understanding of the content taught.

Framework:

Bloom’s Revised Taxonomy: Analyze; Evaluate; Create.

Prompt Question(s) and Instructions:

Watsonia is an economically rational firm that is preparing an advertising campaign to promote its product,

“Zeta.” Watsonia is a monopolistically competitive firm with a relatively high power over the market price.

The following ten panels represent two groups of graphs: Figure A (i.e., panels 1, 2, 3, 4, and 5) and Figure B

(i.e., panels 1, 2, 3, 4, and 5).

The Assignment:

Combine one panel from “Figure A” and one panel from “Figure B”, at a time, to create two “diagrams” that

represent the following long-run examples (i.e., apply the graph-overlapping technique discussed in Lecture 3

by printing each panel from each figure on a separate transparent paper). In other words: By overlapping of

one panel from Figure A over one panel from Figure B, identify two different “diagrams,” where each diagram

has to represent one of the following cases (i.e., do not change the names of the diagrams):

Diagram 1: The most economically-efficient advertising campaign.

(REQUIRED SUBMISSION).

Diagram 2: An advertising campaign that helped to promote product Zeta and at the same time be most cost

efficient; however, out of all panels that helped promoting product Zeta, this advertising campaign

was the least efficient in promoting the product.

(REQUIRED SUBMISSION).

Instructions (Mandatory)
➢ Scan each created diagram and submit all four diagrams in one PDF file. Before scanning, make sure to show

(mark and shade) the equilibrium status in the long run, AFTER the advertising campaign is executed,

represented by all of the following:

• The equilibrium market price (mark it as “P2” on the vertical axis).

• The Watsonia’s equilibrium level of the long-run average cost (mark it as “LAC2” on the vertical axis).

• The Watsonia’s long-run equilibrium output (mark it as “Q*” on the horizontal axis).

• The long-run profit area (shade the profit area). Type on the shaded area either “Positive Profits” or

“Negative Profits” depending on whether there are positive or negative profits, respectively. If there is

“Zero Profits,” do not type anything or shade anything. In other words, no shadings means that profits

equal zero after the advertising campaign is executed. Important: Only shade the profit areas AFTER

the advertising campaign is executed. Do not show (shade) the profit areas before the advertising

campaign is executed.

➢ Finally: Do not provide any explanation on any of the diagrams for why you have chosen the specific

panels from Figure A and Figure B to create your diagrams. Only marking and shading on the scanned diagrams

are required. Providing such explanation(s) will deduct significant points at the instructor’s discretion. See the

sample on the last page, below, to see an example of how a “diagram” should look like.

➢ Again, do not shade any area other than the long-run profit area (if exists), “at the equilibrium level of

output,” and “after” the advertising campaign is executed.

Important: When printing and scanning, black and white diagrams and color diagrams are both allowed, and

none is preferred to the other.

Important: If you feel there is an error in the graphs, do not indicate such belief on this homework assignment.

Instead, discuss this observation with the instructor before submitting this assignment.

Important: The homework assignment has to be uploaded to Blackboard. No email submission is accepted.

Email submission will result in a zero score for the homework assignment.

Important: You can upload many files, but only the last submitted file will be kept and graded.

Important: Only PDF submission is accepted.

Important: The solved homework assignment must be submitted in one PDF file.

Important: Students are not allowed to recreate the panels in Figure A and Figure B. Recreating these panels

(graphs) will result in a zero score for the homework assignment. Use these panels as images, do not draw-

them/re-create them manually or digitally. The grading of this homework assignment depends ONLY on dealing

with the “panels” as “images” when creating the four “diagrams.”

Practice diagrams:

Practice Diagram 3: The least economically-efficient advertising campaign.

(The instructor may help solve this diagram during class, but this is only for your practice, DO NOT SUBMIT

THIS DIAGRAM).

Practice Diagram 4: An advertising campaign that is most efficient in promoting the product Zeta, but least

cost efficient (i.e., least cost efficient is the same as most cost inefficient).

(The instructor may help solve this diagram during class, but this is only for your practice, DO NOT SUBMIT

THIS DIAGRAM).

Output (Q)

MR, AR, P, LAC, LMC

Managerial Economics
Instructor: Dr. Ibrahim Abou-Saad

Demand Curve-1

MR-1

Figure A – Panel 1

MR-2

Demand Curve-2

Output (Q)

MR, AR, P, LAC, LMC

Managerial Economics
Instructor: Dr. Ibrahim Abou-Saad

Demand Curve-1

MR-1

Figure A – Panel 2

MR-2

Demand Curve-2

Managerial Economics
Instructor: Dr. Ibrahim Abou-Saad

Output (Q)

MR, AR, P, LAC, LMC

Managerial Economics
Instructor: Dr. Ibrahim Abou-Saad

Demand Curve-1

MR-1

Figure A – Panel 3

MR-2

Demand Curve-2

Output (Q)

MR, AR, P, LAC, LMC

Managerial Economics
Instructor: Dr. Ibrahim Abou-Saad

Demand Curve-1

MR-1

Figure A – Panel 4

MR-2

Demand Curve-2

Output (Q)

MR, AR, P, LAC, LMC

Managerial Economics
Instructor: Dr. Ibrahim Abou-Saad

Demand Curve-1

MR-1

Figure A – Panel 5

MR-2

Demand Curve-2

Output (Q)

MR, AR, P, LAC, LMC

Managerial Economics
Instructor: Dr. Ibrahim Abou-Saad

LAC-1

LMC-1

Figure B – Panel 1

LAC-2
LMC-2

Output (Q)

MR, AR, P, LAC, LMC

Managerial Economics
Instructor: Dr. Ibrahim Abou-Saad

LAC-1

LMC-1

Figure B – Panel 2

LAC-2
LMC-2

Output (Q)

MR, AR, P, LAC, LMC

Managerial Economics
Instructor: Dr. Ibrahim Abou-Saad

LAC-1

LMC-1

Figure B – Panel 3

LAC-2

LMC-2

Output (Q)

MR, AR, P, LAC, LMC

Managerial Economics
Instructor: Dr. Ibrahim Abou-Saad

LAC-1

LMC-1

Figure B – Panel 4

LAC-2

LMC-2

Output (Q)

MR, AR, P, LAC, LMC

Managerial Economics
Instructor: Dr. Ibrahim Abou-Saad

LAC-1

LMC-1

Figure B – Panel 5

LAC-2

LMC-2

Grading Rubrics (out of 100% for the homework assignment):

Category Basic Work Figure Analysis Findings

Poor/Unacceptable (Up to 5%) The student

did not overlap

diagrams

(Up to 5%) The student

did not overlap

diagrams

(Up to 5%) The student

did not overlap

diagrams

Below Expectations (Up to 10%) The

student overlapped the

diagrams but more than

two diagrams were

overlapped incorrectly.

(Up to 20%) The

overlapped diagrams

showed that the student

analyzed the demand

side or the supply side

separately within each

diagram.

(Up to 30%) The

overlapped diagrams

showed that the student

did not conclude the

correct optimal solution

in at least one created

diagram.

Meets Expectations (Up to 20%) The

student overlapped the

diagrams but no more

than two diagrams were

overlapped incorrectly.

(Up to 25%) The

overlapped diagrams

showed that the student

analyzed the demand

side or the supply side

simultaneously within

each diagram but had

difficulties showing the

shaded profit areas as a

factor in distinguishing

between some of the

created diagrams.

(Up to 35%) The

student showed the

correct optimal solution

in each created diagram

separately but was not

able to find the final

correct answers based

on comparing each two

created diagrams.

Above Expectations (Up to 30%) The

student correctly

overlapped the

diagrams

(30%) The overlapped

diagrams showed that

the student analyzed the

demand side or the

supply side

simultaneously within

each diagram and was

able to show the shaded

profit areas that

distinguished between

some of the created

diagrams.

(40%) The student

showed the correct

optimal solution in

each created diagram

separately and was able

to find the final correct

answers by comparing

each two created

diagrams.

Sample of one diagram created from a previous class.

(e.g., information on the homework assignment)

The following is a sample for how to create a “diagram” using the panels in “Figure A and Figure B.”

Important: The two panels in this diagram (i.e., below) are not necessarily identical to any

of the panels that are required in this homework assignment.

Sample Diagram

Output (Q)

MR, AR, P, LAC, LMC

Demand Curve-1

LAC-1

LMC-1

MR-1

LAC-2
LMC-2

MR-2

LAC2

P2

Demand Curve-2

E1

E2

Q*1 Q*2

P1 = LAC1

Figure B – Sample PanelFigure A – Sample Panel

Managerial Economics
Instructor: Dr. Ibrahim Abou-Saad

Positive Profits

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Order Now

Related Questions

week 3

Using the case study from the discussion preparation, respond to the following: Discuss how an organization can utilize incentive pay to achieve organizational goals and propose the best option for Longhorn Airlines. What challenges might the top management team encounter in implementing the changes you are recommending? Special emphasis should

Value chain

   Compare your favorite brick-and-mortar department store to a similar online retailer. How does each leverage its value chain to achieve its goals? Discuss the advantages each offers over the other and describe the benefits each provides to you as a customer. Value Chain – The functions within a company

592 W8

2 INTRODUCTION (~1 page) Undoubtedly, what we know as conventional project management is continuing to evolve as a result of an ever changing and increasingly complex environment in today’s society (Jaafari, 2003). By definition, project management is the application of knowledge, skills, and tools necessary to achieve the project’s requirements.

discussion 3

Based on your textbook readings so far, respond to the following: What improvements would you make to your current or previous organization’s human resource information systems (HRIS)? Explain the components of a Request for Proposal (RFP). Select a new human resource information systems (HRIS) vendor and discuss your reason for

Week 4-Discussion 1

   How Do You Follow an Unadmirable Leader In the workplace, we often are confronted with the reality that our leader possesses qualities or traits that we don’t admire. These can be simply annoying habits or quirks, or they may be styles, traits, or approaches that fundamentally deviate from our

PPT

 Develop a PowerPoint presentation answering the assigned Chapter assignment. Your PowerPoint will be reviewed by your colleagues who will add comments and add to the conversation.   Answer the following questions for each chapter: Chapter 6 Questions What is motivation? What is the role of motivation in marketing? How do culture

It is about WALMART

Here you have the instructions : You will use Walmart for this paper to primarily analyze the financial health of the company. I am giving you the freedom to choose your own company for this analysis. I will choose the groups, and I will notify the students to which group

week 7 discussion

  Purpose  Scaling a venture and ensuring its sustainability requires strategic thinking, financial planning, and collaboration. In this discussion, you will revisit the collaborative brainstorming process introduced in Unit 3 as part of the design thinking methodology. By returning to a collaborative space, you will refine your scaling, sustainability, and

JIT/MRP/ and synchronized manufacturing

   Compare and contrast JIT, MRP, and synchronized manufacturing, stating their main features, such as where each is or might be used, amounts of raw materials and work-in-process inventories, production lead times and cycle times, and methods for control.

motors

please see attachment MOTORS AND MORE INC You are hired as the HR director for the fictitious Motors and More, Inc. This business-to- business sales company manufactures small motors and accessories for industrial and home products. The industry is highly competitive and the company follows a prospector strategy. A prospector

Measuring Performance

 Select one of the following options for your discussion post this week. Option 1: There is an adage in business that says, “You get what you measure.” This suggests that we must carefully monitor performance-tracking metrics if we want to improve business results like increasing productivity, mitigating costs, or improving

Problem/Solution Business Reports and Presentations

formal problem/solution report that addresses an actual issue, your evaluation of the problem, and a formal recommendation for action.  Topics might be related to the challenges of social media sites, global warming, marketing to younger audiences, cell phone use while driving, credit card debt, parking on campus, mental health awareness,

Preparing Department Budget Presentation for Senior Staff

  The objective of this project is to prepare a comprehensive and insightful presentation for the senior staff on how to prepare their department budgets effectively. This presentation will serve as a guide for each department, ensuring alignment with organizational goals and financial strategy while addressing the specific needs of

Google

  For this assignment, choose a scholarly critical article from one of the SCTC Library databases, or Google Scholar that makes a clear argument about any one of the stories you’ve read for class so far. The article you choose must provide more than basic biographical information and plot summary alone- it

Business & Finance Assignment IV

TOMORROW!!!! If you can’t do it I’ll find somebody else. I NEED THIS DONE BY NOON ET TOMORROW ASAP!!! Directions AND Attachments for the POWERPOINT are in the attachment section!!!