ECO 201 Project Template

[Throughout this template, replace the content in bracketed text with your own responses, and deleted any bracketed instructions (including these).]

[The Introduction section of your report is provided and should remain standard in all submissions.]

[The placeholders for your data visualizations (e.g., charts, graphs, and tables) should be replaced with the appropriate indicated images in each case. , it is recommended that you use a snipping tool to copy and paste your data visualizations into this template. SeeHow to Use the Snipping Tool (Beginner's Guide) for more information if you use a PC. A captioned version of this video is available:How to Use the Snipping Tool (Beginner's Guide) (CC). Or, seeIs There a Snipping Tool for Mac?.]

Memo

To: My Business Partner

From: [Insert your name]

Date: [Insert date]

Re: Microeconomics Simulations

Introduction

This memorandum report identifies and explains key microeconomic principles using a set of simulation games. The outcome of these games illustrate how microeconomic principles can be applied within real-life situations to help us make better business decisions. This report is a summary of the simulations I played and their results, which include the key takeaways and their significance, for your review and reference. It is divided into the following sections:

1. Comparative Advantage
2. Competitive Markets and Externalities
3. Production, Entry, and Exit
4. Market Structures (including the Price Discrimination and Cournot simulations)
5. Conclusions
6. References

Comparative Advantage

[Replace this area with an image of a Production Possibilities Frontier to illustrate the model.]

Figure 1.1

[Insert your responses to the following questions: 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.]

Competitive Markets and Externalities

[Replace this area with an image of a supply and demand diagram to illustrate the model.]

Figure 2.1

[Replace this area with an image of a supply and demand diagram showing consumer and producer surplus to illustrate the model.]

Figure 2.2

[Insert your responses to the following questions: 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.]

Production, Entry, and Exit

[Replace this area with an image of a firm's cost curves diagram to illustrate the concepts.]

Figure 3.1

[Insert your responses to the following questions: 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.]