Name Instructor Task Date Micro and Macro Economic Analysis a) Explain The Relevant Demand And Supply Factors That Affect The Sales And The Profitability Of The Chosen Product/Company The company of my choice is the British Petroleum Industry which deals with oil/petroleum products…
Download file to see previous pages...
Speculations in the prices of oil causes the demand to rise or fall in various times of the year. For example, oil products are greatly demanded in countries experiencing winter because they are used for heating purposes. On the other hand, the supply of petroleum products is mainly dependent on the prices of crude oil, technology and the availability of qualified personnel to extract the products. It is also highly dependent on the political instabilities prevailing in OPEC countries (Etro, 2009). These countries usually have control on the supply and pricing of the product around the globe thereby affecting the profitability’s of many petroleum companies. b) Explain The Market Structure In Which The Chosen Company Operates With Regards To The Chosen Product The British Petroleum Company is found in the oligopoly structure of the market. This is because there are fewer sellers of the products around the globe. They are also highly sensitive to the other companies pricing along with their strategies of marketing. In this market structure it becomes very difficult for new entrants to join the market. The sellers in this market structures are always aware of the strategies that their competitors are using. There are several competitors for the company who have branches all around the globe though there are many restrictions that have been placed to bar entrants into the industry. Dealing in petroleum products also requires very high capital and is also a very risky business due to the risks involved (Dunn & Mutti, 2004). c) Explain What The Company Can Do To Continue To Operate In This Profitable Market Structure Or Move Towards A More Profitable Or Sustainable Market Structure In order to continue operating profitably in this market structure, the British Petroleum Company needs to adopt more efficient technologies that aid in their exploration efforts for newer sources of oil. The company should further invest in the exploration of non-conventional raw materials since the current sources are in very high demand and are nearing depletion. For example, the company can invest in exploring more into the field of oil sans which could yield a lot of untapped resources. These measures will eventually assist the company in countering the uncertainties that fill the pricing of crude oil. For example, the recent civilian uprisings in the Middle East greatly affected the prices of oil around the globe leading some trading companies into encountering losses (Mankiw, 2011). d) Comment On The Different Elasticity Concepts That Can Influence The Pricing Strategy Or The Competitiveness Of The Chosen Product/Company. The product is affected by various elasticity factors of demand and supply. The elasticity of demand that usually affect the products are the price elasticity, income elasticity and cross elasticity between different companies. The price elasticity usually refers to the changes in the quantities of the products demanded in relation to the changes in the prices of the products. The income elasticity mainly refers to the changes that the company experiences in its income in relation to changes in the demand of petroleum products. The British Petroleum Company is also greatly affected by the cross elasticity that exists between different firms (Gwartney, Stroup, Sobel & MacPhearson, 2008). This type of elasticity is responsible for measuring the
...Download file to see next pagesRead More
Cite this document
(“MIcro and Macro Economic Analysis Assignment Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved de https://studentshare.org/macro-microeconomics/1444600-micro-and-macro-economic-analysis
(MIcro and Macro Economic Analysis Assignment Example | Topics and Well Written Essays - 1250 Words)
“MIcro and Macro Economic Analysis Assignment Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/macro-microeconomics/1444600-micro-and-macro-economic-analysis.
Analyze the impacts of increased demand for biofuels on the demand for and price of crops such as corn. Figure 1: Isoquant Isocost Analysis for the Production of Biofuels From other raw materials and plant matter, liquid fuels referred to as biofuels can be produced.
10 hours/unit 15 hours/unit INDIA 12 hours/unit 12 hours/unit Here, it can be seen that if U.S. concentrates only on the production of clothing and India produces only food (i.e. both the nations follow specialization), and then exchange their commodities, both the nations will be able to gain from this set up.
Per Capita income is the measure of living standards .It is calculated by taking the Gross Domestic Product (GDP) which is the total income and dividing it by the population. The standard deviation of GDP per capita is referred to as natural log. The United States of America has continued to maintain high per Capita income despite its huge population.1960 acts the base year in calculation of the per capita income.
MACRO AND MICRO ECONOMICS. Copper is a substance that gives a measure of the world’s economy. The global price virtually trebled between the beginning of 2005 and the 2008 summer prior to their fall to $ 3000 in the 2008’s autumn (Geoff, 2012: 3). There has been an apparent price recovery and thus prices of copper are currently more than that of 2007-2008.
Scarcity Scarcity is limitation in supply. Scarcity is when a commodity is hardly there. For instance, land is a scarce factor of production (Mankiw, pp.55) Relevance In this article it is found out that the government and other traditional sectors are running short of labor.
Firstly, globalisation has a positive impact on the performance of the company. Apple Inc., being the king of technology in the U.S, also reaches different parts of the world as the icon of latest technology. The term globalisation mainly represents
Spillover effect is referred to the decrease in the wages of the non-union company. Generally after any organization increase wages then simultaneous they used to reduce the number of employees to maintain the balance in the profitability.
This model analyses the supply of goods and services a nation can produce in a given period and the corresponding amounts of goods and services that will be purchased at all possible levels. The Fiscal policy
For example when the shirts produced are 90 the amount of computer forgone are less in China than in America, hence low opportunity cost. This means if there is trade China will benefit more, this is because it will import computers and export shirts since the opportunity cost for computers is low.
2 Pages(500 words)Assignment
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Assignment on topic MIcro and Macro Economic Analysis for FREE!