Unit 7 Assignment: ECON 203 Project (Term Paper)

Purpose

To evaluate your ability to apply microeconomic theory to analyze real-world business decisions and market outcomes. This comprehensive analysis demonstrates your mastery of market structure concepts, competitive strategy analysis, and the application of economic principles to contemporary business situations.

Associated Skills

• Decision analysis in microeconomics
• Market structures analysis
• International economics understanding
• Critical evaluation of business strategies using economic frameworks

Instructions

Evidence Statements:

• You will demonstrate your ability to analyze how firms operate differently across various market structures by comparing two companies from different competitive environments
• You will showcase your understanding of how market structure influences business strategies, economic outcomes, and consumer welfare through detailed analysis of pricing, production, and strategic decisions

ANALYSIS OF TWO COMPANIES AND MARKET STRUCTURES

Step 1: Company Selection

Choose two companies/industries that represent different points on the competition spectrum. Examples include:

• A commodity agricultural producer versus a pharmaceutical company
• A local restaurant versus a social media platform
• A utility company versus a technology startup
• A mining company versus a consulting firm

Step 2: Research Requirements

Select at least three news articles that discuss the economic concepts related to your chosen companies and industries. At least two articles should be dated within the last two months. Ensure articles come from credible news sources such as Wall Street Journal, Financial Times, Reuters, Bloomberg, or major newspaper business sections.

Step 3: Analysis Framework Your analysis should include:

1. Market Structure Identification (20% of the project grade)

• Identify the relevant market structure for each company
• Justify your classification using industry characteristics such as:
• Number of competitors
• Barriers to entry and exit
• Product differentiation
• Market share concentration
• Control over price

1. Strategic Decision Analysis (15% of the project grade)

• Compare pricing strategies, output decisions, and profit outcomes
• Analyze the factors involved in economic profit for each company
• Examine how market structure influences strategic choices

1. Competitive Dynamics (15% of the project grade)

• Evaluate non-price competition factors (quality, innovation, advertising, customer service)
• Assess barriers to entry and their role in maintaining market power
• Analyze competitive responses and strategic interactions

1. Efficiency and Welfare Analysis (10% of of the project grade)

• Assessment of efficiency implications for consumers and society
• Analysis of market outcomes versus theoretical predictions
• If applicable, explain how unionization affects company performance
• Discuss regulatory implications and policy considerations

Deliverables:

Your term paper should follow this structure:

1. Abstract (0.5 page) – Concise description of the concepts, problems, and questions discussed in your analysis
2. Introduction (0.5 page) – Optional section providing context for your analysis
3. Literature Review (2 pages) – Compare and contrast perspectives from your selected articles, presenting important information, data, and statistics to support your conclusions. Write in your own words with minimal quotations.
4. Discussion (2 pages) – Apply economic concepts and theory learned throughout the course to analyze the issues described in your articles. Use specific economic vocabulary and convert article language into economic terminology as appropriate. Include at least one graph developed from course concepts.
5. Conclusion (0.5 page) – Synthesize your findings and their broader implications

Submission Guidelines / Criteria for Success

• Length: 4-5 double-spaced pages plus graphs and tables
• Format: 12-point Times New Roman or Arial font, one-inch margins
• Citations: Professional/business style in-text citations and reference list using proper formatting
• Sources: Focus on microeconomic concepts; use research papers, newspaper articles, and books as primary sources
• Originality: Write in your own words with quotes comprising no more than 20% of text
• File Format: Submit as .doc, .docx, .xls, .xlsx, or .rtf files only

Quality Criteria:

• Demonstrates clear understanding of market structure differences
• Shows sophisticated application of microeconomic theory to real situations
• Provides insightful analysis supported by credible evidence
• Uses economic terminology accurately and appropriately
• Presents well-organized arguments with logical flow
• Connects theoretical concepts to practical business implications
• Integration of News Articles and Literature Review (10% of the project grade)
• Use of Economic Vocabulary and Concepts (7.5% of the project grade)
• Graphical Representation (5% of the project grade)
• Writing Quality, Structure, and Organization (5% of the project grade)
• Citation and Formatting (5% of the project grade)
• Overall Originality and Critical Thinking (7.5% of the project grade)