UKEA1023 MICROECONOMICS I
Group Report (20%)
You have to set up a group consisting of 5 persons per group and are advised to select a group
leader. You are required to select and examine two businesses that have been established for at
least five years. You have to answer all of the questions below.
1. A
.
What is the name of the business and what product(s) or service(s) does it provide?
B. Who is the owner of the business (an individual, a family, partners, stockholders,
etc.)?
2. A
.
What inputs does the company use to produce its product or service? (While your
companies’ input usage may differ from that discussed in class, a review of your
course notes on fixed and variable inputs may be helpful here.)
B. Which of the company’s inputs are variable inputs? In other words, suppose the
company wanted to produce more or less than it had been. For which inputs could
the quantity used be easily changed in a relatively short amount of time, such as a
month?
C. Which of the company’s inputs are fixed inputs? That is, for which inputs, can the
quantity used not be changed in a relatively short amount of time?
3. A
.
Suppose the company increased the price of its product/service (or one of its
products/services if there are more than one) by about 10%. Would the quantity
purchased be expected to fall by about 10%, more than 10%, or less than 10%?
(Data on prices and sales are not requited in answering this question. You can make
predictions based on the features / characteristics of the business that have been
chosen).
B. What does your answer to part 3A imply about the elasticity of demand for the
company’s product/service? That is, is the demand for the company’s
product/service elastic, inelastic, or unit elastic?
C. What do your answers to 3A and 3B imply about what would happen to the total
revenue from sales of the product/service? That is, would it increase, decrease, or
remain the same? Explain.
4. With whom does the company compete? Be specific with real examples.
5. Does the company’s product/service differ from that of its competitors and, if so,
how?
6. Would this business be best described as a perfect competitor, a monopolistic
competitor, an oligopolist, or a monopolist? Explain.
7. A
.
How are your two businesses similar?
B. How are your two businesses different?
8. What did you learn from this assignment (economics-related or otherwise)?
Use an essay format for the written paper. Do NOT use an exam format with just question
numbers followed by answer phrases. The paper must be typed double-spaced, using a 12-point
1
font of Times New Roman and 1-inch margins. The page limit is from 10 to 12 pages. Be sure
that you have clearly answered all parts of all questions. Both content and writing style are
important in this assignment. Pay careful attention to spelling, punctuation, and sentence
structure. Students are advised to incorporate American Psychological Association (APA) mode
of referencing
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