Discuss the Comparative Advantage (With Trade) simulation that you played in Module Two.

Discuss the Comparative Advantage (With Trade) simulation that you played in Module Two. You
should add the Production Decisions graph and the Production Trade graph
(i.e., the graph showing how many hamburgers per fries) from you
simulation report into the project template as Figures 1.1 and 1.2.
Then, answer the following questions in the paragraphs below the
figures:
How does this simulation demonstrate how individuals evaluate opportunity costs
to make business decisions? Use the Production Decisions graph from the
simulation as a reference to 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’s decision to trade cause a change to its PPF? Provide specific reasoning to support your claims.
Competitive Markets and Externalities: Discuss the
Competitive Markets and Externalities simulations (both with and without
policy interventions) that you played in Modules Three and Four. Add
the Supply and Demand chart and the Outcomes by Market table from your
simulation reports into the project template as Figures 2.1 and 2.2.
Then, answer the following questions in the paragraphs below the
figures:
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. Based on the outcome of the
simulation, explain how price elasticity can impact pricing decisions
and total revenue of the firm.
Based on the results of the simulation, can policy market interventions cause consumer or producer surplus? Explain why using specific reasoning.
Production, Entry, and Exit: Discuss the
Production, Entry, and Exit simulation that you played in Module Five.
Add the Aggregate Outcomes chart from your simulation report into the
project template as Figure 3.1. Then, answer the following questions in
the paragraphs below the figure:
Analyze a business owner’s decision making
regarding whether to enter a market. For example, what factors
determined the driver’s market entry and exit in the simulation? Use
economic models to support your analysis.
How does a business owner applying the concept of marginal costs
decide how much to produce? For example, how did the driver determine
how many hours to drive each day? 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 module reading chapters
to demonstrate this impact.
Market Structures: Discuss the market structures
simulations (Price Discrimination and Cournot) that you played in
Modules Six and Seven. Then, do the following in the project template:
Complete Table 4.1 as a reference guide for your business partner. The table should compare the attributes of each of the four listed market structures.
Answer the following questions in the paragraphs below the table:
Explain what market inefficiencies derive from monopolies and monopolistic competition. Use examples from the textbook to support your claims.
How do firms in an oligopolistic market set their prices? Use specific examples from the simulations or from the textbook to support your claims.
Explain how firms that compete in the four different market structures determine profitability. Use specific examples from the simulations or the textbook to support your claims.
Conclusions: Draw your overall conclusions about
the relevance and significance of microeconomics. How will
microeconomics principles impact your business decisions moving forward?
Provide recommendations to your business partner for your future
business venture.
Finally, ensure that all of your sources are properly cited using in-line citations and references according to APA format.
What to Submit
To complete this project, you must submit the following:
Memorandum Report
Your memorandum report should
summarize the key principles and takeaways of each microeconomics
simulation for your business partner. It should also illustrate how
these ideas are relevant to your future entrepreneurial success.
Template: Project Template Word Document
Use
this template to structure your memorandum report, and submit it as a
Word document. Sources should be cited according to APA style.

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