Attached is the Homework assignement
Assessment: The Homework Assignment Course: MBA-6212, Summer II, 2021 Instructor: Dr. Ibrahim Abou-Saad Available: On July 16, 2021, at 6 AM Due: On August 4, 2021, at 11:59 PM Goals: 1. Students fully understand the principles of managerial economics that apply to typical business firms. 2. Students learn how to use the foundation elements of microeconomics in managing the business firm’s operations based on optimal economic behaviors. 3. Students apply their learned theoretical concepts in managerial economics in a class assignment that simulates alternative potentials in the business reality. Student Learning Objective (SLO): Design an economic framework for an efficient advertising campaign for business firms with market power. Assessment: The Homework Assignment. Students are asked to use their learning in the course regarding economically efficient advertising campaigns to work on this homework assignment. The students need to evaluate the information provided in the homework assignment to design six different diagrams that represent a full understanding of the content taught. Framework: Bloom’s Revised Taxonomy: Analyze; Evaluate; Create. Prompt Question(s) and Instructions: Watsonia is an economically rational firm that is preparing an advertising campaign to promote its product, “Zeta.” Watsonia is a monopolistically competitive firm with a relatively high power over the market price. The following ten graphs represent two group of graphs; Figure A (i.e., panels 1, 2, 3, 4, and 5) and Figure B (i.e., panels 1, 2, 3, 4, and 5). First: Combine one panel from “Figure A” and one panel from “Figure B”, at a time, to create six “diagrams” that represent the following long-run examples (i.e., apply the graph-overlapping technique discussed in class by printing each panel from each figure on a separate transparent paper). Second: By overlapping of one panel from Figure A over one panel from Figure B, identify six different “diagrams,” where each diagram has to represent one of the following cases (i.e., do not change the names of the diagrams): Diagram 1: The most economically-efficient advertising campaign. Diagram 2: The least economically-efficient advertising campaign. Diagram 3: An advertising campaign that is most efficient in promoting the product Zeta, but at the highest average cost. Diagram 4: An advertising campaign that is most cost-efficient but the least efficient in promoting product Zeta. Diagram 5: An advertising campaign is successful in shifting the demand curve of the consumers upward at the least average cost possible, but was not successful in convincing the consumers that product Zeta has fewer good substitutes, and accordingly the campaign failed to convince the consumers that product Zeta is more important to them in the long run. Diagram 6: An advertising campaign that is most efficient in promoting the product Zeta, but did not change the most productive efficient level of output in the long run (i.e., the level of output that maximized economies of scale). Third: Scan each created diagram and submit all four diagrams in one PDF file. Before scanning, make sure to show (mark and shade) the equilibrium status in the long run, AFTER the advertising campaign is executed, represented by all of the following: • The equilibrium market price (mark it as “P2” on the vertical axis). • The Watsonia’s equilibrium level of the long-run average cost (mark it as “LAC2” on the vertical axis). • The Watsonia’s long-run equilibrium output (mark it as “Q*” on the horizontal axis). • The long-run profit area (shade the profit area). Type on the shaded area either “Positive Profits” or “Negative Profits” depending on whether there are positive or negative profits, respectively. If there is “Zero Profits,” do not type anything or shade anything. In other words, no shadings means that profits equal zero after the advertising campaign is executed. Important: Only shade the profit areas AFTER the advertising campaign is executed. Do not show (shade) the profit areas before the advertising campaign is executed. Finally: Do not provide any explanation on any of the diagrams for why you have chosen the specific panels from Figure A and Figure B to create your diagrams. Only marking and shading on the scanned diagrams are required. Providing such explanation(s) will deduct significant points at the instructor’s discretion. See the sample on the last page, below, to see an example of how a “diagram” should look like. Again, do not shade any area other than the long-run profit area, “at the equilibrium level of output,” and “after” the advertising campaign is executed. Important: When printing and scanning, Black and white diagrams and color diagrams are both allowed, and non is preferred to the other. Important: If you feel there is an error in the graphs, do not indicate such belief on this homework assignment. Instead, discuss such feeling with the instructor prior or after submitting this assignment. Important: The assignment has to be uploaded to Blackboard. No email submission is accepted. Email submission will result in a zero score for the homework assignment. Important: You can upload many files, but only the last submitted file will be kept and graded. Important: Only PDF submission is accepted. Important: The whole solved homework assignment has to be submitted in one PDF file. Output (Q) MR, AR, P, LAC, LMC Managerial Economics Instructor: Dr. Ibrahim Abou-Saad Demand Curve-1 MR-1 Figure A – Panel 1 MR-2 Demand Curve-2 Output (Q) MR, AR, P, LAC, LMC Managerial Economics Instructor: Dr. Ibrahim Abou-Saad Demand Curve-1 MR-1 Figure A – Panel 2 MR-2 Demand Curve-2 Output (Q) MR, AR, P, LAC, LMC Managerial Economics Instructor: Dr. Ibrahim Abou-Saad Demand Curve-1 MR-1 Figure A – Panel 3 MR-2 Demand Curve-2 Output (Q) MR, AR, P, LAC, LMC Managerial Economics Instructor: Dr. Ibrahim Abou-Saad Demand Curve-1 MR-1 Figure A – Panel 4 MR-2 Demand Curve-2 Output (Q) MR, AR, P, LAC, LMC Managerial Economics Instructor: Dr. Ibrahim Abou-Saad Demand Curve-1 MR-1 Figure A – Panel 5 MR-2 Demand Curve-2 Output (Q) MR, AR, P, LAC, LMC Managerial Economics Instructor: Dr. Ibrahim Abou-Saad LAC-1 LMC-1 Figure B – Panel 1 LAC-2 LMC-2 Output (Q) MR, AR, P, LAC, LMC Managerial Economics Instructor: Dr. Ibrahim Abou-Saad LAC-1 LMC-1 Figure B – Panel 2 LAC-2LMC-2 Output (Q) MR, AR, P, LAC, LMC Managerial Economics Instructor: Dr. Ibrahim Abou-Saad LAC-1 LMC-1 Figure B – Panel 3 LAC-2 LMC-2 Output (Q) MR, AR, P, LAC, LMC Managerial Economics Instructor: Dr. Ibrahim Abou-Saad LAC-1 LMC-1 Figure B – Panel 4 LAC-2 LMC-2 Output (Q) MR, AR, P, LAC, LMC Managerial Economics Instructor: Dr. Ibrahim Abou-Saad LAC-1 LMC-1 Figure B – Panel 5 LAC-2LMC-2 Grading Rubrics (out of 100% for the homework assignment): Category Basic Work Figure Analysis Findings Poor/Unacceptable (Up to 5%) The student did not overlap diagrams (Up to 5%) The student did not overlap diagrams (Up to 5%) The student did not overlap diagrams Below Expectations (Up to 10%) The student overlapped the diagrams but more than two diagrams were overlapped incorrectly. (Up to 20%) The overlapped diagrams showed that the student analyzed the demand side or the supply side separately within each diagram. (Up to 30%) The overlapped diagrams showed that the student did not conclude the correct optimal solution in at least one created diagram. Meets Expectations (Up to 20%) The student overlapped the diagrams but no more than two diagrams were overlapped incorrectly. (Up to 25%) The overlapped diagrams showed that the student analyzed the demand side or the supply side simultaneously within each diagram but had difficulties showing the shaded profit areas as a factor in distinguishing between some of the created diagrams. (Up to 35%) The student showed the correct optimal solution in each created diagram separately but was not able to find the final correct answers based on comparing each two created diagrams. Above Expectations (Up to 30%) The student correctly overlapped the diagrams (30%) The overlapped diagrams showed that the student analyzed the demand side or the supply side simultaneously within each diagram and was able to show the shaded profit areas that distinguished between some of the created diagrams. (40%) The student showed the correct optimal solution in each created diagram separately and was able to find the final correct answers by comparing each two created diagrams. A sample for how to create a “diagram” using the panels in “Figure A and Figure B.” Important: The two panels in this diagram (i.e., below) are not nessisairly identical to any of the panels that are required in this homework assignment. Sample Diagram Output (Q) MR, AR, P, LAC, LMC Demand Curve-1 LAC-1 LMC-1 MR-1 LAC-2LMC-2 MR-2 LAC2 P2 Demand Curve-2 E1 E2 Q*1 Q*2 P1 = LAC1 Figure B – Sample PanelFigure A – Sample Panel Managerial Economics Instructor: Dr. Ibrahim Abou-Saad Positive Profits