ECO 201 Project Template (1) (1)

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School

Southern New Hampshire University *

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Course

201

Subject

Economics

Date

May 17, 2024

Type

pdf

Pages

6

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ECO 201 Project Template Memo To: My Business Partner From: Samantha Ortiz Date: April 4, 2024 Re: Microeconomics Simulations Introduction This memorandum report identifies and explains key microeconomics principles using a set of simulation games. The outcome of these games illustrate how microeconomics principles can be applied within real-life situations to help us make better business decisions. This report is a summary of the simulations I played and their results, which include the key takeaways and their significance, for your review and reference. It is divided into the following sections: 1. Comparative Advantage 2. Competitive Markets and Externalities 3. Production, Entry, and Exit 4. Market Structures (including the Price Discrimination and Cournot simulations) 5. Conclusions 6. References
Comparative Advantage Figure 1.1 Figure 1.2 Opportunity cost is what we give up to get that item. In the simulation, I sold more combos when I traded. Production possibilities frontier (PPF) shows the various mixes of output that an economy can produce. If there are two producers forming the same product, each producer will have an opportunity cost in order to form each of their products. If these businesses focused more on what they are each good at, it would allow them both to produce more products to sell. In the “No Trade” simulation, 80 combos were made and sold. But in the “Trade” simulation, where PPF comes into play, I focused on producing one product
and traded with another producer who was producing another product. I was able to sell 91 combos. When making a business related decision, it’s important to evaluate the cost of each product and the time it takes to produce it. Competitive Markets and Externalities Figure 2.1 Figure 2.2
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