Business Decisions Using Microeconomic Models and Theories

Competencies
In this project, you will demonstrate your mastery of the following competencies:

Inform business decisions using microeconomic models and theories.
Determine the impact of economic costs on organizational and individual decision making.
Explain how market structure impacts a business’s entry and exit into a market and its ability to generate economic profit.

Scenario
You and your friend from college have just graduated. You majored in business, and your friend majored in a creative field. Your friend is h for a new product. You both believe in this idea so much that you have agreed to become business partners. However, before you embark explain some key microeconomics concepts to your partner that are important to make sound business decisions.
Your business partner is less than enthusiastic about this prospect and has never had an interest in what is often described as the dry and engage your partner in practical discussions, they brush you off and decide to go play video games instead.
Aha! This gives you an idea: What if you could convince your friend to learn about economics through games? You have found several sim ways the economic principles that you know your partner needs.
Once you have played the games, you will create a memorandum report summarizing for your friend the educational value of your experi principles and takeaways of each simulation, as well as illustrate how these ideas are relevant to your future entrepreneurial success.
Directions
First, assemble the materials that you will need to complete this assignment:

1. You will need several simulation report images for your memorandum. All the necessary data visualizations will be generated after required to save image files of your simulation reports for your simulation discussions. These should also be used to create your me any questions or concerns about the simulation data that should be used for your project, you should promptly reach out to your in
2. Review and use the Project Template located in the What to Submit section.
   You are expected to reference any source material used in your memorandum report with appropriate citations. To support you, a template with a citation for this course’s reading already provided. Any other references you add should be cited according to APA

Once you have assembled the required materials listed above, you can now begin drafting your memorandum report by completing

1. Comparative Advantage: Discuss the Comparative Advantage (With Trade) simulation that you played in Module Two. You should a Trade graph (i.e., the graph showing how many hamburgers per fries) from you simulation report into the project template as Figure the paragraphs below the figures:
   How does this simulation demonstrate how individuals evaluate opportunity costs to make business decisions? Use the Prod reference to explain what role the production-possibility frontier (PPF) has in the decision-making process.
   Explain how comparative advantage impacts a firm’s decision to engage in trade. Would a business’s decision to trade cause a support your claims.
2. Competitive Markets and Externalities: Discuss the Competitive Markets and Externalities simulations (both with and without poli and Four. Add the Supply and Demand chart and the Outcomes by Market table from your simulation reports into the project temp

questions in the paragraphs below the figures:
What impact do policy interventions have on the supply and demand equilibrium for a product? Provide specific examples fro What are the determinants of price elasticity of demand? Identify at least three examples. Based on the outcome of the simul decisions and total revenue of the firm.
Based on the results of the simulation, can policy market interventions cause consumer or producer surplus? Explain why usi

3. Production, Entry, and Exit: Discuss the Production, Entry, and Exit simulation that you played in Module Five. Add the Aggregate O project template as Figure 3.1. Then, answer the following questions in the paragraphs below the figure:
   Analyze a business owner’s decision making regarding whether to enter a market. For example, what factors determined the economic models to support your analysis.
   How does a business owner applying the concept of marginal costs decide how much to produce? For example, how did the dr economic models to explain.
   How does the impact of fixed costs change production decisions in the short run and in the long run? Use the average-total-co chapters to demonstrate this impact.
4. Market Structures: Discuss the market structures simulations (Price Discrimination and Cournot) that you played in Modules Six a template:
   Complete Table 4.1 as a reference guide for your business partner. The table should compare the attributes of each of the fou Answer the following questions in the paragraphs below the table:
   Explain what market inefficiencies derive from monopolies and monopolistic competition. Use examples from the textb How do firms in an oligopolistic market set their prices? Use specific examples from the simulations or from the textboo Explain how firms that compete in the four different market structures determine profitability. Use specific examples fr claims.
5. Conclusions: Draw your overall conclusions about the relevance and significance of microeconomics. How will microeconomics pri forward? Provide recommendations to your business partner for your future business venture.
6. Finally, ensure that all of your sources are properly cited using in-line citations and references according to APA format.