What factors guide firms in their decision-making process?

Topic Consider how individual firms make decisions. What factors guide firms in their decision-making process? As you do so, address three of the following (and only three) assigned concepts in conjunction an assigned question: Concept: Invisible Hand Principle Question: What role does the invisible hand play in a firm’s decision-making process – both in regard to the firm’s own self-interest and also in regard to the market’s natural tendency toward equilibrium (the point at which the quantity demanded equals the quantity supplied)? Concept: Price Elasticity of Demand Question: How does the nature of demand for a firm’s service or product affect its decision-making process? Concept: Profit – Accounting versus Economic Question: What information is conveyed by economic profit as opposed to accounting profit? Which measure of profit is most useful to a firm’s decision-making process? Why? Concept: Price Takers versus Price Searchers Question: What is the difference between firms that are price takers and those that are price searchers? The key to the assignment is to demonstrate your knowledge of three of the assigned concepts. Assignments should be clearly organized, succinct, informative, coherent, and thoroughly based upon an analysis of the assigned concepts. Always keep in mind that the key to the assignment is to demonstrate your mastery of the three assigned concepts you select, the topic question(s) are included only to place your analysis of the assigned concepts into context. Don’t become overly concerned with the topic to the detriment of a detailed discussion of the assigned concepts. Assignment Format Section 1 Include a brief introductory paragraph comprised of a statement of purpose for your assignment – what are you going to do and how are you going to do it. Sections 2 through 4 Here you will have a one to two paragraph section for each of the 3 assigned concepts you select. With each of your three assigned concept sections begin by first fully defining and explaining the assigned concept in your own words, only then move to apply the assigned concept in the context of the connected topic question. Section 5 This should be a brief concluding paragraph to summarize the key elements articulated in your assignment. Section 6 While you should define and explain your three selected assigned concepts in your own words, you should be prepared to supplement your understanding of the topic questions with research. Be sure to cite any resources used in this section. Academic Dishonest Policy If you do use the words, thoughts or ideas of another, you must properly cite your source (author name, publication, page number, and/or website address) and direct quotes must include the previous reference information and be placed inside quotation marks “…”, to do otherwise is plagiarism. Since I have seen this problem increasing of late, I do what to emphasize a particular point here. IF YOU COPY MATERIAL DIRECTLY FROM A WEBSITE AND SIMPLY PASTE IT INTO YOUR ANSWER WITHOUT CITATION, YOU WILL RECEIVE A ‘0’ FOR THE ASSIGNMENT. I should let everyone know that this type of plagiarism is very easy to detect by employing a Google search of any suspicious material. Submission Guidelines Due Dates Answers must be submitted to the course site by 11:55pm the evening of Sunday the 30th of June. There is a 24-hour grace period for this assignment that expires at 11:55pm, Monday the 1st of July. Answers submitted after the deadline will not be accepted for credit. Length and Font Answers should range between 1,500 and 2,000 words. The assignment should be single-spaced, in Calibri 11pt font. File Type All answers must be submitted to the course site in RTF (Rich Text Format). Answers submitted in Word or WordPerfect format will not be accepted. To save a file in Rich Text Format simply click on File, Save As… and choose the Save as format as Rich Text Format, while in your wordprocessing program. Here’s a link to a YouTube video that might prove helpful as well, File Title Please title your RTF file in the following manner, ECO_251_WP_, and also included your Last Name and First Initial. For example, if your name is Jermaine Brown, you would title your file ECO_251_WP_BrownJ.