Premium Essay

Econ 545: Business Economics Project Two: Microeconomic Analysis

In: Business and Management

Submitted By drans88
Words 3274
Pages 14
ECON 545: Business Economics
Project Two: Microeconomic Analysis

Situation B For Situation B, Cindy is looking at investing into the renewable energy industry. She is looking at one section of the industry to invest in, which is that of contracting the installation of solar panels. Cindy, has read, that families and businesses are saving money by going to solar for their power needed. Also, that there are government back regulation to make solar more assessable to people. For Cindy, she is looking pass the business opportunity for installing solar planes, but that this product can reduce pollution and help save the environment.
GDP and Solar Energy In the United States and most nations in the world, energy is vital in keeping society stable and expanding. Energy provides the ability to aid in transportation, activities in daily living and employment. In the United States, $1.2 trillion dollars were spent on energy in 2013 or 8.3% of the GDP. That translates into an annual cost of 3,895 dollars per person was spend on energy consumption. With the great environmental impact seen by the production of energy, there was been more of a call, for renewable energy forms, as that of solar panels. The United States dose consumes 19% of the world’s energy supply and a 19% total of the world’s GPD. With the large needed for energy, companies are looking for new way to produce this produce that cost less and reduces the environmental impact. Renewable energy consumption is projected to increase annually at a rate of 1.6%, on average, between 2011 and 2040, compared to 0.3% growth in total energy. Solar photovoltaic electricity and cellulosic ethanol are projected to grow fastest. However, at these rates renewables would only provide 13% of U.S. energy consumption in 2040, compared to about 9% currently. Residential consumers can receive tax credits for up to 30% of…...

Similar Documents

Premium Essay

Business Economics Gm 545 Project Part 1 Fall Session a 2011

...perfect exit). It also causes a shift in supply curve from S1 to S2 as output rise. That is it mean that supply is increasing, this will force the price to fall, to increase demand and new equilibrium will be reached E2. As shown in the diagram above, the cost prices with the new technology reducing costs by $5, the average and the long run marginal cost curves will shift downward. Since in competitive markets, prices can not be changed, the marginal revenue curve will remain the same as in the past - a hormonal straight line. All this will happen because of the abnormal profits firms see which will encourage them to enter the market and force price to go down while output go up resulting at the new equilibrium point where there is a zero economic profit i.e. a lower price structure – a lower cost structure....

Words: 979 - Pages: 4

Premium Essay

Business Econ 545 Project Paper

...Business Economics GM545 FALL TERM Chapter 15: Q14 There is a lot to be said about being a part of a national estimation or basic "guesstimation "in my mind. Any time there is a standard that is based on a calculation of how much the average versus the absolute, and then you are always going to have a situation where the guess may not be as all inclusive as needed be. When Richard Stone came up with the system to gauge how much is being spent in each household and funneling back into the market this was a "just-about" ingenious way to make sure we know what is going on in our economic basic structure. Coming up with a way to measure the expenditures of the Americans in comparison to other nations can be very useful when trying to figure out the needs that society may have and what it takes to fill the gaps however, this can take an unforeseen turn of events just as it did in the days of the great depression. The problem with accurate representation from a society that income fluctuates based on shortcomings in the ability to employ the employable is that income is never the same. There are businesses in this country that go unaccounted for and there are businesses that are being accounted for that is no longer in existence and this affects the estimation. If this information is not taken into account the numbers or end result will definitely be an inaccurate one. Just like in the days of the days of the Great Depression the information that was used to devise......

Words: 1168 - Pages: 5

Premium Essay

Econ 545 - Project 2

...ECON 545: Course Project- Part #1 Instructor: Vernon Hobbs Date: Student: Exercise #1: Everyone’s Gasoline Problem. We are familiar with fluctuating prices of gasoline at the pump. Why does this happen? Research the recent history of gasoline pricing in your area, and attempt to relate any fluctuations you observe to documented supply and demand factors outline in our book. Be sure to cite any references used. Answer: Below is the supply and demand curve that we review when observing gasoline prices going up in the field. Basically under normal conditions we see the equilibrium price being where supply intersects demand at EQ and EP. However, as we experience issues where manufacturers end up not supplying as much fuel as before we see supply shift to the left and this is seen in the supply graph S2. We also see equilibrium price move up because of this from EP to EP1. An example of such an incident occurred during the Katrina Hurricane back in August 2005. The hurricane damaged the 30 oil platforms and the closure of nine refineries. This reduction of oil production reduced the amount of supply of gasoline for the nation. Thus rising the price of gas nationwide. Exercise 2: Chapter 3 Question 14. Assume initially that the demand and supply for premium coffees (one-pound bags) are in equilibrium. Now assume Starbucks introduces the world to premium blends, and so demand rises substantially. Describe what will happen in this market as it moves to a new......

Words: 669 - Pages: 3

Premium Essay

Project 1 Econ 545

...BUSINESS ECONOMICS 545-PROJECT 1-MICROECONOMIC ANALYSIS KELLER GRADUATE SCHOOL OF MANAGEMENT Comments from Professor: Need more content next time. no Elasticity calculation, No profit maximization, minimal on determinants Abstract Cindy wants to invest in a new business that involves the installation of solar panels. In order to make an informed decision on this business venture, she will need to review potential profit/loss in the solar panel industry by considering future prospects for this type of business. Cindy also needs to decide whether she will invest her own funds or borrow the money to start the business. The imminent growth of the solar photovoltaic (PV) industry is almost certain. When observing the rising costs of coal and natural gas prices, the decrease of PV system costs, and the government support of solar technology, the PV market looks to have a significant increase in volume over the next few years. According to SolarBuzz, a website dedicated to Solar Power and Energy, The solar PV industry has reached a critical tipping point, with end-market demand hitting record levels almost every quarter. This growth is being driven by leading module suppliers and project developers that returned to profitability during 2013, and which have now established highly-effective global sales and marketing networks.” (NPD Group, Inc., 2013) The article also states that “demand in Q1’14 will also achieve record-breaking status, as the strongest first-quarter...

Words: 909 - Pages: 4

Premium Essay

Project 1 – Microeconomic Analysis

...Project 1 – Microeconomic Analysis Donald Cole ECON545 – Business Economics Date: September 18, 2014 Situation C The situation that I personally thought would correspond with today economy would be situation C. Situation C basically states that Edgar has a business idea of buying two gas stations for profit situations. Edgar is asking for advice on buying these two gas stations before taking action on his business idea. Hopefully, by the end of this documentation, I would give Edgar enough information to decide on what to accomplish on his business idea. My research is going to consist of the demand and supply of gasoline. It’s going to consist of the comparison between the prices in the different countries and possible states. I will also have graphs to show all the different factors that would help Edgar situation on his business idea. The first situation that I see is that you’re buying two gas stations that don’t have a start of plan like a name for the gas station. You also don’t have a general location to put the two gas stations. Do you even know what type of gasoline are you planning on selling to the customers? Those are some things that need to go into a detail plan before you just jump right out in the midst of buying a gas station. Let’s start with the basic information of a particular name for the company. Some of the popular gas stations that is used in the United States are BP, Citgo, Chevron, Marathon, Phillips 66, and more (Gas Stations...

Words: 625 - Pages: 3

Premium Essay

Project 1 Econ 545

...Project 1 | ECON 545 – Microeconomic Analysis | Submitted by: Adriana Sabou Email: ady_mierea@yahoo.comCourse: ECON 545Professor: Alex Gialanella | 9/20/2014 9/20/2014 Contents: Page Introduction ……………………………………………………………………………………………. | 2 | Overview ……………………………………………………………………………………………….. | 2 | Relevant Information ……………………………………………………………………………….. | 3 | Determinants of Demand, Supply …………………………………………………………………….. | 4 | Relevant Data ………………………………………………………………………………………….. | 7 | Recommendations……………………………………………………………………………………. | 9 | Economic Justification ……………………………………………………………………………….. | 9 | References …………………………………………………………………………………………….. | 11 | Introduction Overview Cousin Edgar needs to understand/decide if he should invest in buying two gas stations. He must consider the high costs of pursuing this idea on business and to try to recover his costs quickly. If the cost of gasoline is taken as a measuring rod then he needs to understand if he can earn enough to recover the costs of investing. Starting a gas station business can be one of the best decisions Cousin Edgar can make as an entrepreneur. He can either set up new gas stations or buy gas stations for sale. If he decides to buy one then he must have some knowledge about how to buy a gas station and if he is planning to set up new gas stations on his own then he is going to need to do some serious research as to how he can go from start to launch. He needs to consider doing lots......

Words: 2712 - Pages: 11

Premium Essay

Econ 545 Course Project

...Course Project – Part 1 By: Erik Gomez Econ545 11/7/13 Professor: LILIANA N. FARGO PH.D. Ejgomez4@gmail.com Everyone’s Gas Problem Gas prices fluctuate in the U.S. every year and the current national average is around $3.67 yet in Chicago the average gas price is $4.10 (press). What causes gasoline’s prices to fluctuate? And why are Chicago’s gas prices one of the highest in the nation? One of the culprits is supply and demand. OPEC (Oil Producing and Exporting Counties) governs 81 % of the world’s oil reserves and can easily influence the price of crude oil by either increasing or decreasing the production(OPEC). Since gasoline is relatively inelastic, consumer will still need to purchase it even at a higher price. Taxes also influence the ultimate price of gasoline as it tends to distort the price. Chicago’s taxes fluctuate between 70 to 90 cents per gallon in comparison to the rest of the state, which averages around 40 cents a gallon. The cause of higher taxes involves the city spending habits. For example, Millennium Park cost the taxpayers $270 million. World events, to my surprise, have a significant impact in the fluctuation of oil prices. War, national disasters, hurricanes and floods all play a factor in the ultimate price of gas. When BP had their rig explode in 2010 it created a ripple effect around the world causing and increase in demand from other sources driving up the price of crude oil effectively increasing gas prices. These events create a......

Words: 756 - Pages: 4

Premium Essay

Econ 545 - Business Economics Project 1

...BUSINESS PLAN: SOLAR PANELS INSTALLATION SITUATION B Report of Project 1 – Microeconomic Analysis Keller School of Management – DeVry University ECON 545 – BUSINESS ECONOMICS Prof. John Hinrichs January 28, 2015 1. Introduction This is a business report to evaluate the profitability and success of starting a contracting company for installing solar panels in 2015. The report was asked by Miss Cindy B. and it’s purpose is solely to provide Miss Cindy B. the most detailed and informed advice possible. In order to contextualize the type of business Miss Cindy B. wants to begin, the article “US boosts ‘game-changer’ solar technology in bid for global market share” – page 374 of the textbook – was studied and will be cited several times during this paper. Industry Overview The solar energy industry is growing in America, as can be seen by the increase in global demand for solar cells. The US Department of Energy is investing hard on the industry, offering over $12 billion dollars in loans to solar projects. A particular company called 1366 Technologies received a $150 million loan guarantee due to it’s new technology that promises to reduce drastically the costs of production of wafers for solar cells. Studies show that ‘1366’s machines simplify the traditional manufacturing process into one step, slashing costs by more than half. That’s important, since silicon wafers account for about 40 percent of the cost of today’s solar panels, and manufacturers...

Words: 3788 - Pages: 16

Premium Essay

Econ 545

...keller.edu “Macroeconomics Analysis-Project 3” ECON 545 February 8, 2015 Professor: Dr.Melton “Macroeconomics Analysis-Project 2” Introduction Uncle Dan just as with your idea of wanting to create an organic farming market for your farm; this also is a situation is one that I am very familiar with as I am also a landlord here on my farm property #3. As you know grandma decide to lease out the farm properties on farm land #3.There are several issues that have to address before any cash crop can be planted on farm land organic or otherwise. First; as I mentioned in my e-mail to you about three weeks ago the same rules applies for this type of project since it is still farm property. Here in the State of Georgia as I am sure it is a regulation in the other 49 states to be considered a commercial or corporate farmer you must submit a request to your state’s Department of Agriculture. Next; you must be up-to-date with all of the local, state, and, federal land taxes to apply to all properties owned. Finally; you must count the cost; because as a land owner of any kind of property especially a landlord you are responsible for maintenance and upkeep of the property even though it is rented out to a tenant. Also; you or the tenant will have to` have some kind of Renter‘s Insurance in case of a natural disaster or a personal injury, just-in-case. GDP(Growth Rate) The Gross Domestic Product Growth Rate in my area is astounding; because we live a two miles away from a......

Words: 2067 - Pages: 9

Free Essay

Econ 545: Project 2 Macroeconomic Analysis Situation C

...time to take a vacation so it’s important for us to pick a great spot because no one wants to waste time on a vacation that is less than stellar. As a family we would like to enjoy the sun and the sites while keeping in mind each other’s personal preferences for fun. There are so many beautiful places to have fun but some have become increasingly more expensive to vacation at. As a family we have saved enough money to go on a vacation that does not total over 7,000. The family has saved for approximately two years for this vacation. Problem Statement Out immediate family includes my mom and Dad and two sisters and one brother. We all have different views on our idea of fun. My Parents don’t mind staying close by and having fun in a nearby state. However the siblings and I would rather spend time in some place further away so that we can enjoy summer weather and beaches. A variety of places have been thrown up in the air, but no decision has been made. It has been two years since any of us have been on a vacation. The last vacation I took was to Chicago for a long weekend. I believe the hardest part of deciding about our vacation has already been done. The family has decided the first part of May would be the best time for everyone to go. The next decision which I will use the PrOACT approach is to decide on an actual vacation site. Objectives The family will benefit from a vacation because everyone seems to lead pretty much stressful lives between work and school and......

Words: 1943 - Pages: 8

Free Essay

Econ 545 Project 2 Rick

...Expansion ECON545 Expansion Rick is interested in expanding his auto parts company to include many other potential customers. Rick would like to receive an informed opinion from someone who has had education on economical topics such as business cycles, unemployment, inflation, monetary policy, etc. before he commits to this endeavor. All of these topics and statistics will be taken into consideration and once informed Rick will make his decision accordingly. Business cycles A business cycle can be defined as “The fluctuations in economic activity that an economy experiences over a period of time” (Investopedia, n.d.). On average different business cycles have lasted around 69 months with expansion this period lasting 58 months and contraction 11 (Investopedia, n.d.).  Of the various cycles the early expansion stage is the one most suitable for starting and or expanding a business. During this stage there is documented evidence that businesses in fields such as technology, entertainment, and services experience an increased profit margin. During the contraction phase, which includes severities such as recessions, only services such as healthcare flourish (Investopedia, n.d.). GDP is an important concept to consider when expanding a business. It measures consumption and production amounts within a specific country within a given timeframe (Investopedia, n.d.). Although there are critics of this method who argue that not all transactions are reported to the......

Words: 1342 - Pages: 6

Premium Essay

Econ 545 Project 1 Keller

...This is a situation involving my niece Jenny. Jenny is a student who likes to make informed choices about her future. She called me for some advice regarding a potential pursuit in a career as a physician. She also wanted information on where the best locations to practice medicine would be. Jenny knows that I am currently enrolled in a course in economics and has decided to contact me for information on the market for physicians. More specifically information on elasticity, economic profit and loss, pricing, supply and demand, and costs of production. To provide her accurate answers, I chose to educate myself on the subject matter With the information I provided, Jenny should be equipped with the resources she needs to make an informed decision on her potential career choice. The United States demand for health care services shows that citizens are willing to pay the minimum price for required services. Physicians demands varieson many different factors to include the needs of the population, some of the economic constraints of the people such as their income and prices of product, cultural considerations, and technological constraints related to the feasibility of what the consumers demand. The last demand of health care physicians depends on the interactions of supply and demand conditions prevailing in the market. There has been consistent shortages of physicians. This has ultimately influenced programs and policies of the the country in relation to health care......

Words: 1729 - Pages: 7

Premium Essay

Econ 545

...ECON 545 BUSINESS ECONOMICS PAPER PROJECT ONE INTRODUCTION The career choice made by an individual today is basically for the entire journey of life. This paper will be basically based on situation A, where Jenny needs advice in making decision for her career as to be a doctor. The focus of this paper will be demand and supply of physicians in US market and it will elaborate on determinants of demand and supply of physicians with recent data analysis, price elasticity of demand and supply, construction of demand and supply graph using the recent data. Thus, based on the analysis the recommendations will be identified in regards to market of physicians in US economy. DEMAND FOR PHYSICIANS According to NBC news dated November 4th 2013, 6.27pm ET, stated that “demand for doctors will increase by 2025”. The reason for this change in demand for doctors is due to the determinants of demand. The determinants of demand are the factors that lead to changes in the demand for the doctors in the economy. A) Determinants of Demand for Physicians The factors that affect the demand for Physicians in the US market are as follows: i) Price of Physicians The fee charged by physicians determines the demand for them, as the fees increases the demand of physicians will decline. As it is noted in US economy there are high volume of medical insurance policies which help individuals to cover their medical expenses which leads to increment in the demand for......

Words: 1681 - Pages: 7

Free Essay

Business Econ Micro Economics

...Enrique Pena Nieto, along with the leaders of the country's three main political parties: the Institutional Revolutionary Party (PRI), the National Action Party (PAN) and the Party of the Democratic Revolution (PRD). This was an agreement that lists 95 priority commitments. In Mexico there are two important departments the INEGI and the IGAE, the INEGI (instituto nacional de estadistica y geografia) is the National Institute of Statistics and Geography, and the IGAE (Indicador global de la actividad economica) is the global indicator of the economic activity. Also Mexico is a country with a wide variety of natural resources, such as: the rivers, lakes, forests, minerals, soil, oil, air and even the sun. People work to obtain, transform, or exchange the natural resources and use them to our advantage. We perform economic activities which belong to the primary, secondary or tertiary sectors. The activities of the three sectors are linked and divided into these three sectors. The following graph shows how the Primary Activities are the main part of Mexico’s economy these are the activities that require the direct use of natural resources. The INEGI reports that Global Indicator of Economic Activity ( IGAE ) recorded an advance of 0.54 % , with seasonally adjusted figures for February 2014 compared to the month prior. For large groups of activities, the seasonally adjusted series indicate that Primary Activities increased 6.36 %, 0.51 % Tertiary and High 0.28 % in the......

Words: 763 - Pages: 4

Premium Essay

Econ 545 - Project 1

...Deandra Romanoff ECON 545 May 25th, 2014 It is indeed very lucrative for potential owners to purchase gas stations in our current economic condition where gas prices are at sky high, especially in places where public transportation is scarce. On average, the whole United States have faced an increased in gas prices nearly 5 cents from March 21st, 2014 to April 4th, 2014 (Reuters, 2014). According to Reuters, Lundberg survey has shown that this increase in gas prices was caused by an increase in demand. In fact, the United States has been experiencing gas prices increasing since early February this year after gas prices saw a price fall in late 2013 (Reuters, 2014). Despite of the fact that gas prices and demand for gas is high, it makes sense for cousin Edgar to spend his money on purchasing gas stations because the facts suggest that he could gain a lot of profits by operating gas stations. However, there are other various factors that cousin Edgar must take into consideration before spending his money, such as the gas demand and supply, the price elasticity of both, the cost of gas production, as well as the future challenges that awaits him in the future. One thing that Edgar must know about what can affects demand is the availability of substitute product, which in this case the substitute product for gas would be the use of public transportation. In places where there is a good public transportation system like in San Francisco, the demand for gas could be more......

Words: 3096 - Pages: 13

Natures, Animaux | - Seinen | Watch Movie