In this project, you will complete a market structure analysis report for a local city government. This report will consist of two parts. In part one , you will analyze the city’s restaurant industry....

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In this project, you will complete amarket structure analysis reportfor a local city government. This report will consist of two parts. Inpart one, you will analyze the city’s restaurant industry. Inpart two, you will evaluate the internet market in the city. A market analysis is an important tool to understanding the market conditions that you are working in.

What to Submit


Every project has a deliverable or deliverables, which are the files that must be submitted before your project can be assessed. For this project, you must submit the following:




  1. Market Structure Analysis Report

    You have been asked to conduct a market structure analysis report about the city’s restaurant industry and internet market. Make sure that you have answered all of the questions inpart oneandpart two. Use authoritative sources to support your answers and cite your sources appropriately. Your final report should be1,000-1,500 words in length, or about 4 to 6 pages.




Project Overview In this project, you will complete a market structure analysis report for a local city government. This report will consist of two parts. In part one, you will analyze the city’s restaurant industry. In part two, you will evaluate the internet market in the city. A market analysis is an important tool to understanding the market conditions that you are working in. Competency In this project, you will master the following competency: · Explain how market structure impacts a business’s entry and exit from a market and its ability to generate economic profit Scenario You work for Orizont Consulting, a small but growing economic consulting firm.  Recently, the local city government hired Orizont to help create part of its 10-year economic development plan. The city wants to grow business and increase its tax base. Andreas Schmidt, your manager, has asked you to conduct a market structure analysis report that will inform the city’s plan. Directions Part 1: Restaurants In recent years, the city has had an increase in tourism. The city sees this as an opportunity to grow its restaurant market. Currently, there are about 25 restaurants in the city making high economic profit. These restaurants offer different types of cuisine and customer experiences, and sell at a wide variety of price points. The city has a long-term goal of increasing the number of restaurants to 35. First, read the List of Existing Restaurants and the Short-Run Equilibrium Graph documents, which are also linked in the Supporting Materials Section. Use the information from those materials to address the following questions and complete part one of your market structure analysis report: · In the short run: · What is the quantity, price, and profit for an average restaurant? · What is the equilibrium quantity and price for an average restaurant based on the Short-Run Equilibrium Graph? · How much economic profit is made? · In the long run: · How would more restaurants in the city impact the restaurant market? · Will there be entry or exit of restaurants in the market? Why? · How will the economic profit change for restaurants? · How will product choice and prices be impacted? · Strategies · What two strategies could new and existing restaurants use to be successful in this larger market? Think about strategies related to product differentiation, price, and service. · What could existing restaurants do to defend their market share against new restaurants? · What could new restaurants do to be successful in the market? Part 2: Internet Providers Your company has identified the need for better high-speed internet services and internet plans for businesses and households of varying sizes. Currently, the city government allows only one internet service provider, but businesses and households have been complaining about high prices, low quality, and poor customer service. For this reason, the city is considering allowing another internet service provider. It is important to note that the current provider is profitable. For part two of your market analysis, analyze how different market structures affect internet customers in the area. First, read the Internet Providers Overview document, also linked in the Supporting Materials section. Then, address the following: In this part of your market structure analysis report (600–800 words), make sure that you address the following: · Current Market Structure · What is the current market structure of the city’s internet market? How does this market structure affect price, quantity, and quality of services? · What is the most applicable market structure? Select one of the four market structures (perfect competition, monopolistic competition, oligopoly, or monopoly). Then, address the following based on your choice: · What are the characteristics of this market structure? · What is the economic outcome of this market structure? Think about the loss to consumers and society. · What are the barriers to entry in the internet market within your selected market structure in this city? · Implications · What are the implications of introducing another internet service provider in this market? · What is the new market structure if another provider is allowed to enter the market? What are the characteristics of the new market structure? · How would you facilitate the entry of another provider in the market? How would this impact price, quantity, quality, and choice? · Using the concept of game theory, what strategic choices could the two providers make? · Government Intervention · Would you recommend allowing another internet service provider into the market? Why or why not? · What kind of government intervention is needed? What specific actions should the government take to achieve its goal? What to Submit Every project has a deliverable or deliverables, which are the files that must be submitted before your project can be assessed. For this project, you must submit the following: 1. Market Structure Analysis Report You have been asked to conduct a market structure analysis report about the city’s restaurant industry and internet market. Make sure that you have answered all of the questions in part one and part two. Use authoritative sources to support your answers and cite your sources appropriately. Your final report should be 1,000-1,500 words in length, or about 4 to 6 pages. Supporting Materials The following resources will support your work on the project: List of Existing Restaurants Use this list to inform your strategies related to product differentiation, price, and service for current and new restaurants. Short-Run Equilibrium Graph Use this graph to determine the quantity, price, and profit for an average restaurant in the short run. (A text version of this graph is also available.) Internet Service Providers Overview Review this document before completing part two of your market structure analysis report. Writing Guide Use the tutorials and resources in the Writing Guide document if you need help with the writing aspects of this project. Citation Help Need help citing your sources? Use the CfA Citation Guide and Citation Maker. List of Existing Restaurants For part of the market structure analysis report you have been working on, you will analyze the restaurant industry of the city, which is interested in growing local business to increase its tax base and has a long-term goal of increasing the number of restaurants to 35. Currently, there are about 25 restaurants in the city making high economic profit. Below is a list of current restaurants with the types of cuisine they offer and their price points. Price points are represented with $ symbols, where $ is a less expensive restaurant and $$$$ is a more expensive one. Restaurant Type of Cuisine Price Point 1 Italian $ 2 Middle Eastern $ 3 Thai $ 4 Greek $ 5 Chinese $ 6 American Fast Food $ 7 Mexican $ 8 Italian $ 9 Chinese $ 10 Italian $$ 11 Mexican $$ 12 Asian Mix $$ 13 Lebanese $$ 14 Middle Eastern $$ 15 Caribbean $$ 16 Indian $$ 17 Mediterranean $$ 18 African $$ Restaurant Type of Cuisine Price Point 19 American $$$ 20 Fusion $$$ 21 Japanese $$$ 22 Mediterranean $$$ 23 Brazilian $$$ 24 French $$$$ 25 Eclectic $$$$ Internet Service Providers Overview The internet service provider in the city is a large telecommunications carrier that offers bundled packages of cable television, telephone, and internet for a discounted price. Internet alone is more expensive than the bundled package, forcing consumers to buy other services even if they are not needed. Although the bundled services are offered at a discounted price, consumers and businesses in the area have complained about high prices, poor service, and low quality (limited access and low speed). At the national level, the industry is expanding due to an increase in demand for internet services and government regulations that subsidize network expansion. Revenue Economic changes are not likely to affect the industry. More businesses and consumers are demanding faster and reliable internet services, regardless of economic conditions, as internet services become fundamental to conducting business and performing daily tasks. As a result, the industry keeps steadily growing, and internet service providers have experienced constantly rising revenue over the years. Industry Concentration Currently, industry concentration is high, with only a few large providers and a number of small operators at the national level. The government has prevented mergers and acquisitions of some of these providers. However, in most regions, consumers only have one or two providers available to choose from. Costs Building the network infrastructure necessary to provide internet services requires a significant amount of capital investment. Maintenance costs are also high due to the rapid technological advancements that increase equipment obsolescence rates. To provide faster connectivity to satisfy government and customer demands, internet service providers must constantly update their networks and equipment and invest in next-generation networks. Customer service centers that serve a large number of residential customers add to the maintenance costs. Finally, the need for high-skilled workers raises labor costs. Government Regulation The national government is pushing for the expansion of broadband services, so more telecommunication operators are seeking to invest money in expanding their networks. There is government assistance to help small internet service providers expand networks into niche markets that have been traditionally underserved by larger providers. The government has increased the minimum bandwidth rate to 25 Mbps for downloading and 3 Mbps for uploading, and it requires providers to comply with cybersecurity and surveillance requirements. Overall, the government has reduced regulation affecting the industry in recent years. Adapted from: IBISWorld (2018). Internet service providers in the US. (Report 51711d.) Retrieved from https://clients1.ibisworld.com/reports/us/industry/default.aspx?entid=1901 Short-Run Equilibrium Graph: Text Version Use the tables below to determine the quantity, price, and profit for an average restaurant in the short run. These tables represent the data in the short-run equilibrium graph. Marginal Revenue Demand Average Total Cost Marginal Cost Marginal Revenue Quantity Price 0 $12.00 50 $11.00 100 $10.00 150 $9.00 200 $8.00 250 $7.00 300 $6.00 350 $5.00 400 $4.00 450 $3.00 500 $2.00 550 $1.00 600 $-- Demand Quantity Price 0 $12.00 50 $11.60 100 $11.20 150 $10.80 200 $10.40 250 $10.00 300 $9.60 350 $9.20 400 $8.80 450 $8.40 500 $8.00 550 $7.60 600 $7.20 650 $6.80 700 $6
Answered 2 days AfterJun 12, 2021

Answer To: In this project, you will complete a market structure analysis report for a local city government....

Sugandh answered on Jun 14 2021
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Running head: PREMIUM BRANDS HOLDING CORPORATION     
Report Analysis    
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The report has been drafted by the Orizont Consulting, a small but growing economic consulting firm for the manager Andre
as Schmidt. It is evident that the city has an opportunity to grow its restaurant market which will eventually lead to the increase of tourism and will lead to a position which will reach a way towards a profit and high revenue from this influx. The report is identified under two major perspectives one being the market analysis and the other being the internet providers
Part 1 – Market Analysis
The report will be defined in a manner which provides the report under the three pointers which can be explained as below;-
In connection with the short run analysis after the review and analysis:
- Quantity average = 650
- Price average = $ 700
- Profit for an average restaurant PRICE = $ 4, 55,000
In terms with the equilibrium quantity as defined under the graph it is evident that = 500 per week
In terms with the Price for a restaurant which is a based on the Short-Run Equilibrium Graph = $ 8.00 Average Price Value.
The Equilibrium Average Profits will be defined as follows: - $ 4000
In terms with the economic profit which is calculated as follows: - (the demand price is subtracted by the average total cost) Multiplied into the equilibrium quantity value = $ 8 * $ 650 * 500 = $ 3, 21,000.
(99dollarsocial.com, 2016)
In terms with the Long Run process the following aspects is expressed:
Impact of more competition in the restaurant markets will definitely lead to a condition which is actually spreading the environment as well as spending the resources widely between the cities.
Understanding of the entry or exit of restaurants it is evident that the exit will be an obvious option especially in terms with the competition driving out especially in connection with the spending at other businesses in the market.
Analyzing the Economic Profits for the restaurants will actually reduced primarily because the competition has increased and the spending is actually divided on more and more restaurants.
Reviewing the Product and Price Value will actually be impacted on a larger scale and in every aspect mainly because the factor being on the Local restaurants which being in relation to the compromise products and at the same time it begin running the promotions or being the compete with the given the other local and...
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