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(a)Demand: (i) the factors influencing demand (e.g., advertising

19 / 01 / 2019 Economics

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Select any company (or market) that interests you. 
Analyse this company or market using some of the theories or ideas that you have learnt in the microeconomics component of the course. Select from the following theories or ideas:
(a)Demand: (i) the factors influencing demand (e.g., advertising), (ii) the elasticity or responsiveness of demand (for example, given the substitutes produced by competitors), and (iii) the pricing strategies related to demand (Week 2’s topic)

(b)Production costs and supply: (i) fixed, variable or other any costs, and business strategies related to these, and (ii) economies of scale, diseconomies of scale, constant returns to scale, and the minimum efficient scale (Week 3’s topic)

(c)The interaction of demand and supply: (i) changes in demand and supply and the outcomes for market equilibrium, and (ii) business strategies involving these (Week 4’s topic)

(d)The market structure (or the competitive environment) that defines the operation of a company: (i) comments on who the company’s competitors are, (ii) whether there is perfect competition, a monopoly, or an oligopoly, and (iii) what the barriers to entry into the market are, and (iv) the company’s growth strategies (Week 5 and 6’s topic)
Select any combination of the above. For example, you could choose to analyse (a)(ii) and (b)(i); or (a)(iii), (b)(i) and (c)(ii);  and so on. It is better to pick a few topics and concepts and delve deeply into them than address many of them but only scratch the surface of each.
Where possible, evaluate this: does the real-life business situation you’ve analysed conform to the economic theories that you learnt? Or does the business reality differ from what the theories say? Give critical comments, if you can. Be bold and express your personal thoughts, no matter how critical or radical they may be. A few sentences here and there will do (or in the discussion or conclusion section). Try to use the economic concepts, ideas and terms you know.


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