Question.1916 - For this final project, you will write a 6- to 10-page paper in which you research andanalyze the market for a product or service produced by the company you work for, or bysome other company that you know well. The paper will need to be in APA format.Throughout the paper, you will need to provide careful economic analysis of your chosenmarket using the economics concepts from the course. As a starting point, you shouldexpect your audience to be familiar with these concepts, so there is no need to definebasic concepts. Instead, demonstrate your understanding of the concepts by applyingthem competently.You may support your analysis with no more than two figures, graphs, or tables (total)placed in the appendix. Do not include these in your paper unless you also write aboutthem extensively in the main body. Any time you make a specific statement about themarket or company, you will need to defend it with actual evidence. To accomplish this,you will need to cite that evidence using the APA in-text citation convention within thebody of your paper as well as using the APA end-of-text citation convention in yourreferences section.There are a variety of issues that you could analyze. Choose three or four of the followingand provide a thorough analysis. Your goal should be to teach us about this company orindustry. Your final submission must not simply be a Wikipedia-quality report—theemphasis must be on the economic analysis and readers should be able to learnsomething not easily discovered. Your final submission should be a fourth or fifth draft, notthe first draft of what you’ve written.Issues you may choose to review in depth:What is the market? Who are the major competitors with close substitutes? How muchmarket power does your particular company hold in this market? What barriers to entryreinforce your company’s market power? If your company lacks market power, what arethe major obstacles to gaining market power? Are rival firms doing largely the samething or is there substantial product differentiation? Does product differentiationinclude related goods or services that are sold alongside your feature product?4/30/24, 7:26 PM7.6 Economic Analysis Paperhttps://floridatech.instructure.com/courses/8916/assignments/1871771/5What is the general market structure for your industry? Is it best thought of as amonopoly, oligopoly, or monopolistic competition? What characteristics suggest this isone market or another? Is the price high enough to cover costs and do there appear tobe above-normal profits? Is the market structure changing over time or expected to?What are the important barriers to entry?What are the two or three major determinants of demand in the market? What are therelevant controllable and uncontrollable factors? Have the most important factorschanged at all in recent years? Has anyone estimated price elasticity of demand foryour product or the larger product categories? If not, see if you can collect some priceand quantity points and perform your own analysis (holding all else besides price andquantity constant). If this isn’t possible, describe which of the major demand shifters arethe most dominant—tell us which direction demand shifts and how far. There is no needto draw generic demand and supply curves—just explain thoroughly in words and leaveit up to the reader to recreate that simple diagramWhat is the relevant cost structure for the industry and for your firm? How does yourcompany avoid the sunk-cost fallacy and hidden-cost fallacy? What labor market skillsets are needed for your company and are there readily available workers to hire? Whatdoes the market for important inputs look like? Does your company have many or fewoptions from which to source important inputs? Is the hold-up problem a concern? Arethere economies of scale? Are there economies of scope or diseconomies of scope?Are there large fixed costs? How do the variable costs compare to the fixed costs interms of relative size?Is your firm able to practice price discrimination? What form of price discrimination ismost relevant in this industry and are there other opportunities that your firm has notyet taken, and why? Remember, there is a difference between price differences causedby cost differences! If price discrimination is possible, how is your firm able toaccomplish this effectively? Are there opportunities to enhance your firm’s ability topractice price discrimination?Does your firm produce a product that is a substitute or a complement to goods orservices produced by other firms? What implications does this have for the pricingdecisions pertaining to your firm’s goods or services? How are your firm’s own productsor services related to each other? Are they substitutes or complements? In what waydoes this underlying structure influence the possible pricing decisions for theseproducts?What is the influence of government on your company or market? Is there a heavy taxburden? Are there subsidies or price controls? Are there are other regulations that arerelevant to the functioning of the market? This could include environmental regulations,taxes, tariffs, minimum wages, and so on. Describe the specific features of theregulation and their impact on your company or industry. Provide estimates of theimpact on the market (e.g., prices, costs, or employment). Has this left room forbusinesses to exploit the inefficiency to create wealth?4/30/24, 7:26 PM7.6 Economic Analysis Paperhttps://floridatech.instructure.com/courses/8916/assignments/1871772/5BUS 5421 - Economic Analysis Paper RubricWhat is the role of asymmetric information experienced by your company or in yourindustry? Are there issues of adverse selection and/or moral hazard in your company ormarket? Are incentives aligned between management and workers? Are incentivesaligned between different divisions within the company, if applicable? Is there shirkingof problems or other activities that self-interested agents pursue to the detriment of theprincipal? Clarify the relevant actors and the source of the problem as well as theresults. How are these issues addressed, if at all?Is there an application of the prisoner’s dilemma in your industry? Or are other gamemodels more relevant? Should we think of strategic interactions as simultaneous orsequential? Clearly describe the relevant players, their strategies, and payoffs. What iseach firm’s dominant strategy? What happens when each uses their nondominantstrategy? What happens in equilibrium? What legal paths are there for the industry toavoid the Nash equilibrium that results from the game played once? Is there a repeatedgame structure? Does reputation matter?Parameters: The paper should be 6 to 10 pages and use APA format, standard font andfont size, 1-inch margins, and double spacing. The cover page, reference page, andappendix do not count toward the page count.Due: Sunday by 11:59 p.m. ETSubmission method: TurnitinPoints: 200See below to view the Economic Analysis Paper RubricPlagiarismYou are expected to write primarily in your own voice, using paraphrase, summary, andsynthesis techniques when integrating information from class and outside sources. Use anauthor’s exact words only when the language is especially vivid, unique, or needed fortechnical accuracy. Failure to do so may result in charges of Academic Dishonesty.Overusing an author’s exact words, such as including block quotations to meet wordcounts, may lead your readers to conclude that you lack appropriate comprehension ofthe subject matter or that you are neither an original thinker nor a skillful writer

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