# OPERATIONS DECISION ASSIGNMENT

Using the regression results and other computations from Assignment 1, determine the market structure in which the low-calorie food company now operates.Use the Internet to research two (2) of the leading competitors in the low-calorie microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within the industry (worldwide).Write a six to eight (6-8) page paper in which you:1. Outline a plan that will assess the effectiveness of the market structure for the companyâs operations. In Assignment 1, the assumption was that the market structure [or selling environment] was perfectly competitive and that the equilibrium price was to be determined by setting QDequal to QS. You are now aware of recent changes in the selling environment that suggest an imperfectly competitive market where your firm now has substantial market power in setting its own âoptimalâ price. 2. Given that business operations have changed from the market structure specified in the original scenario in Assignment 1, determine two (2) likely factors that might have caused the change. Predict the primary manner in which this change would likely impact business operations in the new market environment. 3. Analyze the short run and long cost functions for the low-calorie microwaveable food company given the cost functions below and suggest substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long-run.Total Cost: TC = 160,000,000 â 115.56Q + 0.01111Q2Variable Cost: VC = â 115.56Q + 0.01111Q2Marginal Cost: MC = -115.56 + 0.02222QMore specifically:a. Write the equation for the Average Total Cost function (ATC). (Hint: ATC = TC/Q.)b. Determine the quantity (Q) associated with minimum ATC. (Hint: ATC is minimized when ATC = MC).c. Determine the minimum value of ATC.Remember that to be profitable, the productâs price (P) must be greater than its average total cost (ATC) at the optimal level of output (Q).4. Determine the possible circumstances under which the company should discontinue operations. Suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response. (Hint: Your firmâs price must cover average variable costs in the short run and average total costs in the long run to continue operations.)5. Suggest one (1) pricing policy that will enable your low-calorie microwavable food company to maximize profits. Provide a rationale for your suggestion. (Hint: In Assignment 1, you determined your firmâs market demand equation to be QD = 211,000 -10P. This is equivalent to the inverse demand equation: P = 21,100 â 0.10 Q. Since Total Revenue (TR) is P x Q, your firmâs Total Revenue (TR) and Marginal Revenue (MR) functions are:Total Revenue: TR = (P*Q) = 21,100 Q â 0.10 Q2Marginal Revenue: MR =(dTR/dQ) = 21,100 â 0.20 QHint: Use the profit maximization rule MR = MC to determine your optimal price and optimal output level now that you have market power. Compare these values with the values you generated in Assignment 1. Is your price higher or lower? What about the quantity?6. Outline a plan, based on the information provided in the scenario that the company could use in order to evaluate its financial performance. Consider all the key drivers of performance, such as company profit( or loss) for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.Hints:(a)Calculate profit in the short run by using the price and output levels you generated in part 6. [Optional: You may want to compare this to what profit would have been in Assignment 1 using the cost function provided here].(b) Calculate profit in the long run by using the output level you generated in part 3 and assuming that the selling environment will likely be very competitive. (Why would this be a valid assumption?) Remember that increasing competition in the long run drives the market price (P) down until it is equal to minimum ATC in the industry.7. Recommend two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders. Outline, in brief, a plan to implement your recommendations.8. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
• 24/7 support
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
• Expert Proofreading
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

### Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

### Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.