Cost curves based on firm behavior

Purpose of Assignment

Students will develop cost curves on which firm behavior is based and  will utilize these cost curves to determine the behavior of their  chosen organization in the market served. Using the concept of  comparative advantage, students analyze trade opportunities and use the  model of supply and demand to explain factors that could affect demand,  supply and prices. Students will determine various factors that could  affect their organization’s total revenue and will recommend actions the  firm could use to maximize their profit and their presence in the  market served.

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Assignment Steps

Scenario: You have been given the responsibility of  working with your Catepillar Tractor’s CEO to do a competitive market  analysis of the potential success of one of their existing products.

Research Caterpillar Tractor and a product produced by that organization in which an analysis can be conducted.

Write a 1,750-word analysis of the current market conditions facing your product, making sure you address the following topics:

  • Define the type of market in which your Caterpillar selected product will compete, along with an analysis of competitors and customers.
  • Analyze any comparative advantages and international trade opportunities.
  • Explain the factors that will affect demand, supply, and prices of that product.
  • Examine factors that will affect Total Revenue, including but not limited to:
    • Price elasticity of demand
    • Factors that influence productivity
    • Various measures of costs, including opportunity costs
    • Externalities and government public policy and their effect on marginal revenue and marginal cost
  • Recommend how your organization can maximize their profit-making  potential and increase their presence within the market served by the  product.

Cite a minimum of three peer-reviewed sources from  the University Library in additon to your textbook and any  fact/background websites

Format your paper consistent with APA guidelines.

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