Research Paper Grading Rubricpoints0123below Standardapproaching ✓ Solved

Research Paper Grading Rubric: Clarity of problem statement and introduction - A concise introduction is included that provides the reader with a preview of the organization of the paper and clearly states the topic of the term paper.

Critical thinking using economic principles - Key points and arguments in the body of the paper demonstrate critical thinking using economic concepts learned in class. At least two graphs or tables are included as a part of the presentation.

Conclusion and applications to your life - Term paper includes a clear summary and conclusion, including a brief statement reflecting on what you feel you have learned from the assignment and how that learning may be applied to your life or work going forward.

Effective writing - Term paper is clearly organized and logically presented. Writing includes proper grammar, spelling and punctuation (including verb agreement and complete sentences). Paper includes a narrative of up to 8 pages (not including title page, reference list, or appendices).

Use of APA style in reference list and in-text citations - All facts, figures and direct quotes are properly cited using APA format in-text citations. APA format sources are provided for all tables and figures. A reference list using APA format is included with at least seven sources.

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 highly inventive and has come up with an excellent idea for a new product. You both believe in this idea so much that you have agreed to become business partners. However, before you embark on your entrepreneurial adventure, you will have to 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 economics. You have found several simulation games that demonstrate in real and interesting 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 experiment. In your memorandum, you will restate the key principles and takeaways of each simulation, as well as illustrate how these ideas are relevant to your future entrepreneurial success.

Paper For Above Instructions

Introduction

The purpose of this memorandum is to elucidate critical microeconomic principles through the lens of simulation games, demonstrating their importance for sound business decisions. Understanding these principles will help you, as my business partner, grasp the economic decisions that shape our future venture.

Comparative Advantage

To diversify our products effectively, I've engaged with the "Comparative Advantage with Trade" simulation. This game exemplifies how producers evaluate opportunity costs in their decision-making process. The simulation illustrated the production-possibility frontier (PPF), which represents the trade-offs between different goods. For instance, the PPF helps illustrate how we can allocate resources most efficiently in producing either hamburgers or fries. Through this evaluation, we understand that focusing on our strengths allows us to produce more efficiently and engage in beneficial trade.

Comparative advantage encourages firms to specialize, leading to increased efficiency and better outcomes for all parties involved. By leveraging these efficiencies, we can increase our production capacity and cater more effectively to our target market.

Competitive Markets and Externalities

The "Competitive Markets and Externalities" simulations demonstrated the significance of supply and demand equilibrium. Policy interventions can significantly alter market dynamics, as evidenced in the simulation. For instance, when government subsidies were applied in the simulation, the supply curve shifted, leading to lower prices and increased quantity produced. This experience reinforces the idea that government policies can directly affect market efficiency.

Moreover, understanding price elasticity is crucial. Various determinants impact price elasticity, such as availability of substitutes, necessity versus luxury nature of goods, and time frame for purchase decisions. In our potential business, recognizing the price elasticity of demand will guide our pricing strategies, ultimately impacting demand and firm revenues.

Notably, externalities can result in consumer or producer surplus, depending on the nature of the market intervention. The simulations illustrated how consumers might benefit from subsidies through lower prices, while producers could experience surplus or deficit based on market alterations.

Production, Entry, and Exit

Engaging with the "Production, Entry, and Exit" simulation provided insights into the challenges of entering a competitive market. Business owners must evaluate market viability before entering, taking into account fixed and marginal costs to ensure profitability. For example, in the simulation, the decision to enter the market was influenced by the expected demand and the competitive landscape.

Furthermore, marginal costs play a pivotal role in production decisions. Understanding how much to produce hinges on marginal analysis, which considers the additional cost of producing one more unit against the additional revenue expected from that unit. This principle will inform our operational strategies as we scale our business.

Additionally, fixed costs, which do not fluctuate with production levels, dramatically alter short-term and long-term decision-making. Using the average total cost model allows us to visualize the importance of reaching economies of scale over time, as optimizing production can lead to reduced per-unit costs.

Market Structures

The simulations on market structures, including price discrimination and Cournot models, provide a nuanced understanding of competitive dynamics. It is essential to recognize the unique characteristics of different market structures, such as perfect competition, monopolistic competition, monopolies, and oligopolies. Each structure influences firms' pricing power and competitive strategies differently.

For example, monopolies create market inefficiencies, leading to higher prices and reduced consumer choice. Conversely, in oligopolistic markets, firms may engage in collaborative pricing strategies to maintain competitive advantage. We will need to navigate these complexities as we position our product in the market.

Understanding how different markets determine profitability is crucial. Our success hinges on employing strategies aligned with the market structure we operate within, be it through competitive pricing, differentiation, or strategic partnerships.

Conclusion

The exploration of microeconomic principles through simulation games has highlighted their relevance to our upcoming business venture. The knowledge acquired regarding comparative advantage, market dynamics, production decisions, and market structures will certainly enhance our decision-making process. Moving forward, I recommend that we implement rigorous economic analyses and leverage these principles to refine our business strategy, ensuring informed choices that maximize our potential for success.

References

• Mankiw, N. G. (2021). Principles of microeconomics (9th ed.). Cengage.
• Krugman, P., & Wells, R. (2020). Economics (5th ed.). Worth Publishers.
• Varian, H. R. (2014). Intermediate microeconomics: A modern approach (9th ed.). W.W. Norton & Company.
• Taylor, T., & Weerapana, A. (2016). Principles of economics (2nd ed.). Cengage.
• Perloff, J. M. (2016). Microeconomics (7th ed.). Pearson.
• Miller, R. L., & Benjamin, D. K. (2014). Economics (4th ed.). Cengage.
• Blinder, A. S., & Baumol, W. J. (2016). Microeconomics: Principles and policy (13th ed.). Cengage.
• Froeb, L. M., McCann, B. T., & Ward, M. R. (2020). Introduction to industrial organization (5th ed.). Cengage.
• Gans, J. S., King, S. P., & More, M. L. (2021). Principles of microeconomics (2nd ed.). Oxford University Press.
• Samuelson, P. A., & Nordhaus, W. D. (2010). Economics (19th ed.). McGraw-Hill Education.