How do individuals evaluate opportunity costs to make business decisions? Explain what role the production-possibility frontier (PPF)
Question:
How do individuals evaluate opportunity costs to make business decisions? 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' decision to trade cause a change to its PPF? Provide specific reasoning to support your claims.]
What impact do policy interventions have on the supply and demand equilibrium for a product? Provide specific examples from the simulation to illustrate.
What are the determinants of price elasticity of demand? Identify at least three examples. Explain how price elasticity can impact pricing decisions and total revenue of the firm.
What policy intervention can cause a change in consumer or producer surplus? Explain why using specific reasoning.
Analyze a business owner's decision making regarding whether to enter a market. Use economic models from the textbook to support your analysis.
How does a business owner apply the concept of marginal cost and marginal revenue to decide how much to produce? Use 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-cost (ATC) model included in the textbook to demonstrate this impact.
Explain how firms that compete in the four different market structures determine profitability. Use examples from the textbook to support your claims. Explain how firms that compete in the four different market structures determine profitability. Use examples from the textbook to support your claims.
Insert your overall conclusions about the relevance and significance of microeconomics when making business decisions. Provide recommendations to your business partner for your future business venture
References
Mankiw, N. G. (2021). Principles of microeconomics(#9 edition). Cengage.
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