ECO 550 Week 6 Assignment 2

Assignment 2: Operations Decision
Due Week 6 and worth 300 points

Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operates.

Use the Internet to research two (2) of the leading competitors in the low-calorie frozen, microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within the industry (worldwide).

Write a six to eight (6-8) page paper in which you:

1. Outline a plan that will assess the effectiveness of the market structure for the company’s operations.Note: In Assignment 1, the assumption was that the market structure [or selling environment] was perfectly competitive and that the equilibrium price was to be determined by setting QD equal to QS. You are now aware of recent changes in the selling environment that suggest an imperfectly competitive market where your firm now has substantial market power in setting its own “optimal” price.
2. Given that business operations have changed from the market structure specified in the original scenario in Assignment 1, determine two (2) likely factors that might have caused the change. Predict the primary manner in which this change would likely impact business operations in the new market environment.
3. Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the cost functions below. Suggest substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long-run.

TC = 160,000,000 + 100Q + 0.0063212Q2
VC = 100Q + 0.0063212Q2
MC= 100 + 0.0126424Q

4. Determine the possible circumstances under which the company should discontinue operations. Suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response.(Hint: Your firm’s price must cover average variable costs in the short run and average total costs in the long run to continue operations.)
5. Suggest one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits. Provide a rationale for your suggestion.

www.Hwacer.com

(Hints:

• In Assignment 1, you determined your firm’s market demand equation. Now you need to find the inverse demand equation. Having found that, find the Total Revenue function for your firm (TR is P x Q). From your firm’s Total Revenue function, then find your Marginal Revenue (MR) function.
• Use the profit maximization rule MR = MC to determine your optimal price and optimal output level now that you have market power. Compare these values with the values you generated in Assignment 1. Determine whether your price higher is or lower.)

6. Outline a plan, based on the information provided in the scenario, which the company could use in order to evaluate its financial performance. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

(Hints:

• Calculate profit in the short run by using the price and output levels you generated in part 5. Optional: You may want to compare this to what profit would have been in Assignment 1 using the cost function provided here.
• Calculate profit in the long run by using the output level you generated in part 5 and cost data in part 3 and assuming that the selling environment will likely be very competitive. Determine why this would be a valid assumption.)

7. Recommend two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders. Outline, in brief, a plan to implement your recommendations.
8. Use at least five (5) quality academic resources in this assignment.Note: Wikipedia does not qualify as an academic resource.

Your assignment must follow these formatting requirements:

ECO 550 Week 6 Assignment 2, ECO 550 Assignment 2 HSA 525 Week 10 Discussion, ECO 550 Week 2 Discussion , HSA 525 Assignment 3 Post Merger Analysis, CIS 510 Week 9 Discussion, ECO 550 Week 3 Assignment 1, ECO 550  Assignment 1,  HSA 505 Week 8 Discussion 1, HSA 505 Week 8 Discussion 2, CIS 510 Week 9 Assignment 4, CIS 500 Week 6 Discussion, ECO 550 Week 4 Discussion,  PAD 525 Week 7 Assignment 3, PAD 525 Week 7 , CIS 500 Week 5 Discussion, CIS 500 Week 4 Discussion, CIS 500 Week 4 Assignment 2, ACC 400 Complete Class, ACC 544 Complete Class, ACC 280 Complete class, ACC 290 Complete Course, BUS 250 Entire Course A Graded, BUS 310 All Week Discussion Questions, BUS 490 Week 4 Assignment 1, BUS 515 Final Exam, CIS 510 Week 2 Assignment 1, CMGT 554 Complete class, CIS 511 Week 1 Assignment 1, CMGT 244 Entire Course, CIS 524 All Week Discussion Questions, CMGT 554 Complete class, CIS 525 Week 10 Term Paper, ECO 410 Test Bank, ECO 415 Complete Course, ENG 125 Week 5 Final Paper, ETH 316 Complete class, FIN 419  Entire class, FIN 515 Week 6 Second Course Project, FIN 534 Midterm Exam, ECO 550 Week 3 Discussion, HCA 210  Complete class, HRM 420 Complete Course, HRM 530 Complete Assignments, MGT 431 Entire Course, MGT 437 Complete Course, MGT 500 Week 3 Assignment 1, MKT 500 Assignment 2 Part B Your Marketing Plan, PHL 458 Complete Class, PSY 322 Complete Class, PSY 390 Complete Class, HSA 510 Week 10. ECE 430 Week 2 Journal, ECE 430 Week 2 Discussion, ECE 430 Week 3 Discussion, ECE 430 WEEK 3 JOURNAL, ECE 430 Week 4 Assignment Informal Assessment Presentation, ECE 430 Week 4 Assignment, ECE 430 Week 4 Discussion, ECE 430 FINAL PROJECT,  ECE 430 Week 5 Discussion, CIS 512 Week 8 Discussion