Team Assignment 1 <insert semester>ECO2305 Microeconomics

Team Assignment #1
Lessons 1 to 9
Class, you have been assigned into teams of 4 or 5. You need to amongst yourselves
how the duties of the assignment will be divided and the manner in which it will be
presented to me. Working together will ensure that all parts will be done well and on
time.
Pick a publically traded company that you would like to know more about and print out
their annual reports. Become familiar with your company and understand the business
and industry in which it operates. nce you become familiar with the company
complete the following !uestions"
1. Pro#ide an o#er#iew of your company discussing the industry it which it operates.
Briefly discuss its sales and profit le#els it reported in the most current year for which its
annual reports are a#ailable $if you are in a %&1% class for e'ample( you should ha#e
access to %&11 annual reports for instance). Briefly discuss the competitors you
company faces within the industry and the regulatory en#ironment it which it operates
within.
2. Please outline the market structures discussed in class or your te'tbook. *or each
market structure( outline the facts that need to be present for such market structures to
e'ist. Be as e'hausti#e as possible in your answer. This !uestion should be general in
nature and not related to your selected company.
3. +a#ing outlined what the different market structures are in % abo#e( where does the
company you selected fit in the scheme of things, -oes your company operate in a
perfectly competiti#e en#ironment or does it fit somewhere else $oligopoly( monopoly(
other), .hy or why not. /ou should ensure that the characteristics that make up a
particular market structure are discussed when determining where your company falls.
4. Looking at your companies financial statements discuss what there profit le#els are
like. .hat are the accounting profits and how does it differ from economic profits $in
general and not related to your company). 0n your specific case( what is the accounting
profits $gi#e a #alue), .hat can we say about economics profits $without being too
specific" are they 1ero or non 1ero).
5. 0f the answer to the abo#e suggest that accounting profits and or economic profits
are greater than 1ero( will new entrants to the market result in profits falling o#er the
longer term, 0f not( what factors present within the industry and marketplace acts as a
barrier to entry, Be sure to look at factors specific to your selected company to answer
this !uestion.
6. 2lass( look at the good your company sells. 0s the good elastic or inelastic and why,
.hat does this suggest will happen to your company3s profit le#els if they decided to
Team Assignment 1 <insert semester>ECO2305 Microeconomics
increase price or decrease price, 0f you where a shareholder in the company what
would you suggest where would you like to see prices go, -o go#ernments impact the
price that you are able to charge, 0f so( is this good for customers, .hy or why not,
7. .hat is go#ernment regulation like in your company3s industry. -oes the
go#ernment employ any regulation designed ensure that competition is healthy or the
rights and welfare of consumers is protected. .ould you support go#ernments breaking
up companies if they become too powerful, .hy or why not, Be sure to discuss how
consumer and society3s welfare are impacted by firms that e'hibit market power, -o
you think that go#ernments should always( as a rule( reduce market power of firms that
e'hibit market power $in order to protect consumer welfare) or should firms be able to
grow to be large and power $such as 4icrosoft), .ould breaking up large companies
as a rule eliminate incenti#es to work hard,

Total Marks 100!