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Essay Instructions: Topic: Profit Maximization; An Actual or Theoretical Objective?

You are required to prepare a mini-term paper on one of the following topics. It is absolutely imperative that you properly document this essay. That means footnotes and a formal bibliography will be included in this assignment.

Ideally, you will utilize no less than 4 sources in researching your paper and at least half of these resources will not be attained from the Internet. (i.e. use actual books, published articles in journals etc.)

Please provide photocopies of the cover pages or index of at least 2 of the journals, scholarly papers, or text books that you may have used in preparing this term paper (staple this to the back of your paper).

Essay Instructions: Two pages per question: Total of three sources

1. Antitrust authorities at the Federal Trade Commission are reviewing your company?s recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for your company to present arguments that your firm has not increased its market power through this merger. Can you do this? How? What evidence might you bring to the hearing?

2. Assume that the demand for plastic surgery is price inelastic. Are the following statements true or false? Explain your answer?
o When the price of plastic surgery increases, the number of operations decreases.
o The percentage change in the price of plastic surgery is less than the percentage change in quantity demanded.
o Changes in the price of plastic surgery do not affect the number of operations.
o Quantity demanded is quite responsive to changes in price.
o The marginal revenue of another operation is negative.

3. The Theory of the Firm document, the Friedman article, and the information in chapter 4 argue that the main goal of a firm in a market economy is to maximize profit (shareholder wealth) over the long term. However, SEC regulations require U.S. corporations to publish operating results on a quarterly basis. How does this short term time frame impact long term profit maximization? Should the SEC change their regulations of public corporations to require only annual reporting of operations? How might this impact stock price in the short term? How do you believe that management deals with these two sometimes competing goals?

4. During the energy crisis of the 1970s, and again in the last 5 years, Congress bemoaned the ?price gouging? and ?windfall? profits of the major oil companies. In the 1970s Congress imposed an ?excess profits tax? on these companies. It did not do so this time? What does this change show about how our understanding of the way the price system works to allocate resources has evolved? If ?excess profits? are taxed away, where will oil companies get the money to fund new exploration and development of oil properties? Does it matter if these price increases are demand or supply induced?

Essay Instructions: Introductory Microeconomics

The recently announced merger between American Airlines and US Airways is the latest in a series of mergers in the airline industry.
http://www.bbc.co.uk/news/business-21454925


You have to answer following things to evaluate `the potential consequences of mergers in air travel both for firms (in terms of their costs) and for consumers? through the your essay;
? How will market structure change because of this merger in air travel (aviation)?
? Compare the price (profit maximization) under before merger and after merger from past merger event in airline industry through the Diagrammatic representation

And then discuss How an American-US Airways Merger Could Impact Travelers and firm

**You require using following website as references;**

The American Antitrust Institute
http://www.antitrustinstitute.org/~antitrust/sites/default/files/AAI_BTC_USAir-AA_White%20Paper_8-7.pdf

At least one from The Economist http://www.economist.com/

At least three from The Jstor http://www.jstor.org/

Economic reasoning is developed through:
1) Diagrammatic representation;
2) Narrative intuition;
3) Empirical evidence (if applicable).

Please make sure to use academically sound references (e.g. scholarly journal articles, or
books)

Essay Instructions: Introduction:

Business owners,managers,and aspiring entrepreneurs need to know the best form of business organization to selec t based on various considerations,including taxes,liability,capital contributions,sharing of profits and losses,management and control,and survivorship.

Task:

Write an essay (suggested length of 1 -3 pages ) that explains the relationship be tween marginal revenue and marginal cos t,and the importance of these concepts for profit maximization in which you do the following:

A. Define marginal revenue .
1. Explain its relationship with to tal revenue.

B. Define marginal cost.
1. Explain its relationship with to tal cost.

C. Define profit.
1. Explain the concept of profit maximization.

D. Explain how a profit-maximizing firm de termines its optimal level of output,using marginal revenue and marginal cost as criteria.

E. Explain what ac tion a profit-maximizing firm takes if marginal revenue is greater than marginal cost.

F. Explain what ac tion a profit-maximizing firm takes if marginal revenue is less than marginal cost. G. Include all in- text citations and references in APA format.