March 18th, 2019 
adminType:Discussion Board
Unit: Elasticities & Market Structure
Due Date: Tue 4/18/17
Grading Type:Numeric
Points Possible: 75
Points Earned: 0
Deliverable Length: Primary Task: 600800 words; Secondary Task: 150200 words
Assignment Objectives
Compare and contrast how production analysis is carried out and be able to evaluate production situations using economy of scale elasticity and other analytic tools.
Demonstrate the ability to assess market structures ranging from pure competition to monopoly/monopsony.
Primary Task Response: Within the Discussion Board area write 600800 words that respond to the following questions with your thoughts ideas and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear and use examples to reinforce your ideas.
Additional Information: The board of directors at AutoEdge is actively discussing several options to address flagging revenue. One option continues to surface during each board meeting; that is relocating the manufacturing operation back to the United States. Longtime Chief Financial Officer Ingrid Adams leads the group that is in favor of this option.
Ingrid Adams approaches you in the company break room.
Hello she says. I’m glad I saw you.
Hi you say. What can I do for you?
I have a question about economics she says. I think you can help me explain something to some shareholders on the board.
Economics! My favorite subject you say. What’s your question?
If AutoEdge decided to increase its prices and return to the United States she says how would this action affect consumer demand? I want to know your opinion about elasticity.
Sure you say. So you want to know if the elasticity for auto parts is considered to be relatively inelastic relatively elastic unitary elastic perfectly elastic or perfectly inelastic. Right?
Exactly she says.
I have an opinion you say. Do you want to talk about it now or do you want something in writing?
Something in writing would be best she says. Would you explain your opinion so that I can respond to questions from other members of the board too?
I’d be glad to you say. I’ll put something together this afternoon and get it to you before I leave today. Is that soon enough?
Perfect she says. Thanks for your help.
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