MBA 603 week 6 assignment GMU

MBA 603 week 6 assignment GMU

The articles attached provide material for a case study dealing with competition and competitive markets. Provide brief answers to the following questions, keeping your answers to a maximum of 4 pages. Make any assumptions you may need to answer the questions.

MBA 603 qn 1. a. What information would be required to determine whether the poultry processing market, which produces “disassembled bird parts,” is (perfectly) competitive? Briefly explain the significance of whether this market is competitive or not. b. Now, assume this market is competitive. Based on this assumption, describe the short-run equilibrium for both the market and a typical processing firm. Using a graphical or algebraic approach, interpret and explain the key features of the equilibrium.

MBA 603 Qn 2. a. The “Glut of Poultry” indicates a “glut of chickens … has built partly because of foreign fears of avian flu …. “. Assuming the glut refers to the market for processed chickens, describe the impact on demand levels for the market and for a typical processing firm. b. Using the model for a competitive firm, analyze the short-run impacts on a typical processing firm of the change in conditions. Specifically, identify the likely effects on price, quantity, and profits, compared with the levels anticipated prior to the change in conditions. Illustrate with a graph. c. Describe how the information about the effects you identified relates to the typical firm’s supply curve. d. According to the article, “livestock analysts think a corresponding drop in retail prices would increase consumer demand enough to help reduce the chicken glut.” Based on an economic analysis of the situation, explain the likely basis for the analysts’ view belief. e. If the change in market conditions turns out to be permanent, what adjustments would you expect to see in the long run? Briefly explain.

MBA 603 qn 3. a. Based on information in “McDonald’s Menu Upgrade,” does the market for fast-food meals appear to be competitive? If so, what type of competition? Briefly explain. b. Discuss why the retail prices for chicken, chicken parts, and menu items containing chicken have not changed in ways that parallel the developments in the market for processed chicken.