1. Choose a company that interests you and analyze the firm on a microeconomic level. How do the two big economic questions apply to the decisions that this firm has made:

(a) The what, how, and for whom goods and services are produced. (5 marks) (b) How do the choices made in self-interest also promote social interest? (5 marks)

2. What has/is this firm doing to achieve allocative efficiency? What factors of market coordination are at play? Does this firm have a comparative/absolute advantage? (5 marks)

3. Explain the Elasticity of Demand for the products/services sold by this firm. (5 marks)

4. What is this firm doing to maintain/improve its operations? Any future observations/developments/concerns? (5 marks)

5. What market structure does this firm fall into (perfect competition, monopoly, monopolistic competition, oligopoly). Has this firm always been classified within this structure? Expand by using the knowledge and terminology acquired through this course to support your findings.(5 marks)

Written Assignment - Part 2

6. Rona opens a clothing store. With the funds that she has available for inventory, she can purchase the following combinations (to start off, she will only offer selling Dresses and Blouses). Please take a look at the production possibilities (per day) below: Total 10 Marks

Production

Possibilities per day

Dresses Blouses

a) Plot the PPF diagram given the data to your left (1 mark).

A 0 15

B 1 12

C 2 8

D 3 3

E

4

0

b) There are 3 possible points on a PPF diagram (points 'x' 'y' 'z'). Please plot and accurately label each point (3 points).

Point "X" =

Point "Y" =

Point "Z" =

a) Complete the table below (calculating the marginal costs associated with purchasing one additional)

(2 marks)

b) Graph the marginal cost curve, given the data produced above (3 marks)