Fluent Essays

Instructions Your assignment is to provide a final report for Ruby Red Movie Theater in which you address the concerns that have been outlined in the previous six units of this class, indicating any outsourcing or vertical integration options Ruby Red Movie Theater may be able to implement. Be specific regarding the analysis you performed in each area of study. Your recommendations for improvements for the theater should be based on economic theory and your analysis. Your complete analysis of the theater, the industry, and opportunities that may exist are crucial for the future profitability of the theater. Revise the information from previous assignments as needed and pull everything together to create a cohesive, comprehensive report. What this means is that this final report should be original updated work, though it is based on your previous assignments. Do not just copy and paste your previous assignments into one paper. Also, be sure to incorporate any suggestions your instructor made in your previous assignments. New information will be added for Unit VII, which will focus on the information provided in this unit. The topics for this section will include why firms exist, the factors that create a situation where vertical integration is desirable, and why firms would use outsourcing, as well as how this information can be applied to the Ruby Red Movie Theatre. The following is a list of items and sections you should include in your final report. Replace the unit numbers with appropriate titles for the information in each section. · Title page · Table of contents · Introduction · Unit I - · Results write-up from Unit I, including recommendations · Unit II · Results write-up from Unit II, including recommendations · Unit II Tables · Unit II Graphs · Unit III · Results write-up from Unit III, including recommendations · Unit IV · Results write-up from Unit IV, including recommendations · Unit IV Tables · Unit V · Results write-up from Unit V, including recommendations · Unit V Tables · Unit VI · Results write-up from Unit VI, including recommendations · Unit VII · Results write-up from Unit VII, including recommendations · Conclusions and final recommendations · Reference page · Insert labeled tables after the reference page Adhere to APA Style (APA 7th edition) when constructing this assignment, including in-text citations and references for all sources that are used. Please note that no abstract is needed. For help when citing and referencing using APA 7th edition, consult the 2020 Success Center Citation Guide . It also provides guidance that will help you with APA Style formatting. Instructions You are continuing to serve as a private economic consultant for Ruby Red Movie Theater in town. The theater would like to have your input concerning what prices they should charge for movie tickets and the average prices for concession stand items. Access the Unit II Assignment Worksheet in Blackboard. Assignment Instructions: Complete the Unit II Assignment Worksheet. This worksheet contains a series of questions concerning your reviews of the movie ticket and concession items; be sure to answer them all and put your answers in the worksheet. Once you have completed your worksheet, use the information you gathered there to write an essay describing your calculations, what you suggest is the equilibrium price and quantity of movie tickets and concession items for Ruby Red Movie Theater, and factors that could cause the supply and demand curves to shift. Specifically, address the information from your worksheet when writing your essay, as well as the following: · The movie theater manager has seen a dramatic decrease in the quantity of movie tickets and concession items purchased over the last year. Indicate the following: · two factors that might have caused the demand curve to shift to the left (decrease) for movie tickets, and · two factors that might have changed and caused the demand for concession items to shift to the left (decrease). Your essay must be at least two written pages, not counting the references page. Be sure to include an introduction and a title page. You are required to use at least two peer-reviewed scholarly sources. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA Style. Copy and paste your essay into the Word document on the page indicated at the end of the worksheet. This means that everything for this assignment—the completed worksheet, all graphs, and the completed essay—should be provided in one Word document that you will upload via SafeAssign. Unit III Assignment Worksheet PLEASE NOTE: The numbers here may differ from prior versions of this assignment. Background Information The Ruby Red Movie Theater in town is in jeopardy of having to close its doors because it is unable to generate enough total revenue. In an effort to generate more total revenue, the movie theater manager decided to change the prices this month for drinks, popcorn, candy, hot dogs, and movie tickets. The manager would like for you to analyze the data that has been collected to help decide if the decisions to change the prices were correct and, if not, what should be done to prices to generate more total revenue. Be sure to answer all of the questions in this worksheet. Question 1 Information regarding the community’s average income and movie ticket sales at the Ruby Red Movie Theater for both last year and this year are presented below. Use this information when answering questions A–C, below. Last Year This Year Community’s Average Income $31,000 $25,000 Movie Ticket Sales 3,900 5,000 A. Calculate the Income Elasticity of Demand for movie tickets. (Show your work. You can type it in the box below, or write it out by hand, take a picture, and insert the picture in the box. Make sure it fits in the box. NOTE: These options apply to all “Show your work” responses.) Income elasticity of demand=Percentage change in QD/Percentage change in income = (5000-3900)/ (25000-31000) *100\% =-0.183*100\% =-0.183 B. Are movie tickets considered to be inferior goods, normal goods, or unit (unitary) goods in this town? Explain why. Inferior goods are those whose demand falls when the income of individuals rises. Low incomes or a contraction in the economy make individuals increase affordability of inferior goods as a substitute for normal goods whose demand tends to rise with a rise in income. Normal goods on the other hand are commodities whose demand rises with a rise in income. C. A new firm is relocating to the city and adding a large number of above average salaries. Will the number of movie ticket sales for the theater increase, decrease, or remain constant? Base your answer on information you answered in part B above. Movie tickets are normal goods since with an increased income, interest in watching movies rises. Therefore, location of a new form and addition of salaries indicates more disposable incomes thus more purchase of movie tickets. Continue on next page Question 2 The manager at Ruby Red Movie Theater decided to change the prices of concession stand items as well as tickets this month in an effort to increase revenues. Below, you are provided with prices for last month and this month as well as the quantities demanded for both months. Use this information when answering questions A–H below. Price Quantity Demanded Item Last Month This Month Last Month This Month Large Drink $7.00 $5.00 150 161 Large Popcorn $8.50 $7.00 125 101 Small Drink $3.50 $2.50 75 80 Small Popcorn $6.00 $5.70 45 39 Candy $5.00 $3.00 57 68 Hot Dog $6.00 $5.85 35 36 Movie Ticket $9.00 $9.00 428 300 A. Calculate the total revenues earned by the theater last month and this month (Show your work.)     Price   Quantity Demanded Item Last Month   This Month Last Month   This Month Large Drink $7.00 $5.00 150 161 Large Popcorn $8.50 $7.00 125 101 Small Drink $3.50 $2.50 75 80 Small Popcorn $6.00 $5.70 45 39 Candy $5.00 $3.00 57 68 Hot Dog $6.00 $5.85 35 36 Movie Ticket $9.00   $9.00   428   300 Total revenues $45.00 $38.05 915 785 Total revenues last month = $45.00 Total revenues this month = $38.05 B. Calculate the price elasticity of demand for large drinks. (Show your work.) = (161-150)/ (5-7) =-5.5 Is the price elasticity of demand for large drinks price elastic, inelastic, or unit (unitary)? Briefly explain why in the box below. Answer = Large drinks have a negative income elasticity of demand. This therefore classifies it as an inferior good thus an indication that a rise in income will lead to a drop in the demand hence the consumer may opt for luxury goods. Large soda is therefore a normal good that is associated with income elasticities of demand that is greater or less than one. Consumers therefore purchase proportionately more in comparison with a percentage change in income hence highly sensitive. Since the value is negative, the price is deemed as inelastic hence an indication that with every 1\% rise in income individuals demand -0.18181 less the amount of large soda. Continue on next page C. Calculate the price elasticity of demand for large popcorn. (Show your work.) (7-8.5)/ (101-125) =0.0625 Is the price elasticity of demand for large popcorn price elastic, inelastic, or unit (unitary)? Briefly explain why in the box below. Answer = The greater the PED coefficient indicates consumers are responsive to changes in price. Price elasticity of large popcorn is 0. 0625.Since the PED approximately 1, there is thus the conclusion that consumers exhibit a response to a change in price and quantity demanded. In this case, not many goods and services are existent in the real world but the substances are highly addictive. Continue on next page D. Calculate the price elasticity of demand for small drinks. (Show your work.) = (80-75)/ (2.50-3.50) =5/-1 =-5 Is the price elasticity of demand for small drinks price elastic, inelastic, or unit (unitary)? Briefly explain why in the box below. Answer = The PED of small drinks is less than zero hence an indication that it is perfectly inelastic. Therefore, in this case consumers are not at all responsive to any changes in price. This therefore implies that even though there is a price change, the quantity of small soda will remain the same. As much as there are many goods which lie in this case, others such as small drinks cause strong addictions hence having a PED of less than 0 Continue on next page E. Calculate the price elasticity of demand for small popcorn. (Show your work.) (39-45)/ (5.7-6) =-6/-0.3 =20 Is the price elasticity of demand for small popcorn price elastic, inelastic, or unit (unitary)? Briefly explain why in the box below. Answer = The PED of small drinks is more than one hence an indication that it is perfectly elastic. Therefore, in this case consumers are highly responsive to any changes in price. This therefore implies that in the occurrence of a price change, the quantity of small popcorn will either rise or fall in accordance with price change. Continue on next page F. Calculate the price elasticity of demand for candy. (Show your work.) (68-57)/ (3-5) 11/-2 =-5.5 Is the price elasticity of demand for candy price elastic, inelastic, or unit (unitary)? Briefly explain why in the box below. Answer = The PED of candy is less than zero hence an indication that it is perfectly inelastic. Therefore, in this case consumers are not at all responsive to any changes in price. This therefore implies that even though there is a price change, the quantity of candy will remain the same. As much as there are many goods which lie in this case, others such as small drinks cause strong addictions hence having a PED of less than 0(Weygandt et al.,2019) Continue on next page G. Calculate the price elasticity of demand for hot dogs. (Show your work.) (5.85-6)/ (36-35) =-0.15 Is the price elasticity of demand for hot dogs price elastic, inelastic, or unit (unitary)? Briefly explain why in the box below. Answer = The PED of hot dogs is less than zero hence an indication that it is perfectly inelastic. Therefore, in this case consumers are not at all responsive to any changes in price. This therefore implies that even though there is a price change, the quantity of hot dog will remain the same. As much as there are many goods which lie in this case, others such as small drinks cause strong addictions hence having a PED of less than 0 Continue on next page H. Calculate the price elasticity of demand for movie tickets. (Show your work.) (300-428)/ (9-9) =0 Is the price elasticity of demand for movie tickets price elastic, inelastic, or unit (unitary)? Briefly explain why in the box below. Answer = The PED of movie tickets is zero hence an indication that it is perfectly inelastic. Therefore, in this case consumers are not at all responsive to any changes in price. This therefore implies that even though there is a price change, the quantity of movie tickets will remain the same. As much as there are many goods which lie in this case, others such as small drinks cause strong addictions hence having a PED of less than 0 Continue on next page Question 3 Based on the relationship between price elasticity of demand and total revenues, evaluate whether the individual price changes the manager made were correct or not. Remember, Ruby Red Movie Theater wants to increase total revenue. A. Was the decision to decrease the price of large drinks appropriate to increase total revenues? Why, or why not? Briefly explain in the box below. Answer = The decision to decrease the price of large drinks was inappropriate. This is because the PED is less than zero hence an indication that it is perfectly inelastic. Therefore, in this case consumers are not at all responsive to any changes in price. This therefore implies that even though there is a price change, the quantity of large drinks will remain the same. B. Was the decision to increase the price of large popcorn appropriate to increase total revenues? Why, or why not? Briefly explain in the box below. Answer = The decision to decrease the price of large popcorn was inappropriate. This is because the PED is less than zero hence an indication that it is perfectly inelastic. Therefore, in this case consumers are not at all responsive to any changes in price. This therefore implies that even though there is a price change, the quantity of large popcorn will remain the same. C. Was the decision to decrease the price of small drinks appropriate to increase total revenues? Why, or why not? Briefly explain in the box below. Answer = The decision to decrease the price of small drinks was inappropriate. This is because the PED is less than zero hence an indication that it is perfectly inelastic. Therefore, in this case consumers are not at all responsive to any changes in price. This therefore implies that even though there is a price change, the quantity of small drinks will remain the same. D. Was the decision to increase the price of small popcorn appropriate to increase total revenues? Why, or why not? Briefly explain in the box below. Answer = The decision to decrease the price of small popcorn was appropriate. This is because the PED is more than zero hence an indication that it is perfectly elastic. Therefore, in this case consumers are responsive to changes in price. This therefore implies that even though there is a price change, the quantity of small popcorn will change (Weygandt et al.,2019). E. Was the decision to decrease the price of candy appropriate to increase total revenues? Why, or why not? Briefly explain in the box below. Answer = The PED of candy is less than zero hence an indication that it is perfectly inelastic. Therefore, in this case consumers are not at all responsive to any changes in price. This therefore implies that even though there is a price change, the quantity of candy will remain the same. As much as there are many goods which lie in this case, others such as candy cause strong addictions hence having a PED of less than 0. The move to increase prices is not effective in revenue generation F. Was the decision to increase the price of hot dogs appropriate to increase total revenues? Why, or why not? Briefly explain in the box below. Answer = The PED of hot dogs is less than zero hence an indication that it is perfectly inelastic. Therefore, in this case consumers are not at all responsive to any changes in price. This therefore implies that even though there is a price change, the quantity of hot dogs will remain the same. The decision to increase prices is not appropriate in increasing revenues. G. Was the decision to increase the price of movie tickets appropriate to increase total revenues? Why, or why not? Briefly explain in the box below. Answer = The decision was inappropriate. The PED of movie tickets is zero hence an indication that it is perfectly inelastic. Therefore, in this case consumers are not at all responsive to any changes in price. This therefore implies that even though there is a price change, the quantity of movie tickets will remain the same. As much as there are many goods which lie in this case, others such as small drinks cause strong addictions hence having a PED of less than 0(Weygandt et al.,2019). Instructions Tracy, the manager at Ruby Red Movie Theater, is extremely worried about concession stand sales. Tracy has indicated that she is at a loss regarding how many employees should be working in the concession stand area and how many concession stand items should be sold per day. Tracy is even considering closing the concession stand area. Output, labor, and price information for items sold in the concession stand area have been provided in the Unit V Assignment Worksheet. Your assignment is to help Tracy figure out the optimal number of workers and the number of items that should be sold daily. Let’s keep the concession stand open! Access the Unit V Assignment Worksheet in Blackboard. Complete the following in the Unit V Assignment Worksheet. Part 1 Complete the table, calculating the total variable cost of labor, total cost per day, total revenue, profit, average variable cost, average fixed cost, average total cost, marginal cost, and marginal revenue. Part 2 Answer the questions after the table as a guide to use when writing your essay. Part 3 Write an essay of at least 750 words. · Briefly describe the calculations you made when filling in the table data. · Indicate the profit-maximizing level of output and employees along with the two ways you found this optimal level. This profit-maximizing level of output and employees will tell you how to keep the concession stand open. · Describe the average price level for concession stand items that would be required to force the theater to shut down the concession stand in the short run, and include how you determined this level. Include a copy of the completed table and your answers to the questions in the worksheet after your essay (e.g., on the page following your reference page, if you have one). The word count will not include the information in the table. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA Style. Unit V Assignment Worksheet This worksheet is intended to help you develop the information you will use to complete your Unit V Essay. You are expected to include the completed table in your Unit V Essay. The additional questions after the tables are intended to help you formulate your ideas concerning what you will write in your essay. Just completing this worksheet does not constitute completing the Unit V Assignment. The information from the worksheet must be incorporated into your essay submission. Follow the instructions below. Instructions: 1. Complete all parts of the Unit V Assignment Worksheet. 2. Answer the questions after the table; these will help you formulate your ideas for writing the essay part of your Unit V Assignment. You are expected to expand on these questions in your writing. 3. Include the tables and your question responses from the Unit V Assignment Worksheet as an appendix following the essay part of your Unit V Assignment. On the next page, you are provided with a table showing the different levels of output for concession stand items that are possible as the number of workers used changes. Also included are the price of labor, the total fixed cost per day, and the average price of concession stand items. Using the information you learned from the textbook for this class as well as the information in the Unit V Lesson: 1. Complete the table below concerning concession stand topics. 2. Answer all of the questions listed below the table. As mentioned, doing this will help you when formulating your thoughts for the essay part of your Unit V assignment. Round These Answers to the Nearest Whole Number Round These Answers to the Nearest Penny Output (Concession Stand Items) Number of Workers Employed Per Day Price of Labor Per Worker Per Day Total Variable Cost of Labor Total Fixed Costs Per Day Total Cost Per Day Average Price of Concession Stand Items Total Revenue Profit Average Variable Cost Average Fixed Cost Average Total Cost Marginal Cost Marginal Revenue 0 0 $120 0 $2,000 0 $8.00 2000 2000 0 0 0 1 0 100 2 $120 12000 $2,000 60 $8.00 14000 2000 120 20 1 0 120 400 4 $120 48000 $2,000 30 $8.00 50000 2000 120 5 0 0 120 750 6 $120 90000 $2,000 20 $8.00 92000 2000 120 3 0 0 120 900 8 $120 108000 $2,000 15 $8.00 110000 2000 120 2 0 0 120 1,025 10 $120 123000 $2,000 12 $8.00 125000 2000 120 2 0 0 120 1,125 12 $120 135000 $2,000 10 $8.00 137000 2000 120 2 0 0 120 1,200 14 $120 144000 $2,000 9 $8.00 146000 2000 120 2 0 0 120 1,250 16 $120 150000 $2,000 8 $8.00 152000 2000 120 2 0 0 120 1,280 18 $120 153600 $2,000 7 $8.00 155600 2000 120 2 0 0 120 1,290 20 $120 154800 $2,000 6 $8.00 156800 2000 120 2 0 0 120 1,289 22 $120 154680 $2,000 5 $8.00 156680 2000 120 2 0 1 120 1,280 24 $120 153600 $2,000 5 $8.00 155600 2000 120 2 0 0 120 Questions: Use your responses to these questions to help you formulate ideas for writing your Unit V Essay. Question 1: What is the level of profit that is made by Ruby Red Movie Theater if 2 workers are employed at the concession stand and only 100 items of output are produced (sold) at the concession stand? Answer: 2000 Question 1a: Should Ruby Red Movie Theater continue to operate the concession stand if only 100 concession stand items are being produced (sold) by 2 workers? Why, or why not? Answer: Ruby red Movie theatre should continue to operate the concession stand even if only 100 concession stand items are being produced by 2 workers. This is because of the law of diminishing returns which states that with all factors held constant, the output yields an increment in returns then starts to fall regardless of inputs. Thus, if only 100 concession stand items are produced by 2 workers, it is highly appropriate. Question 2: If Ruby Red Movie Theater wanted to produce (sell) 1,290 items from the concession stand, would profit be maximized? Why, or why not? Answer: Marginal Revenue is not equal to marginal cost at the production rate of 1290.Maximization of profits tends to occur both in the long run and in the short run. The profit maximizing quantity is where the revenue function and the cost function have the same slope and where the distance between them is maximized. The condition that the two functions have the same slope is the same as saying that marginal revenue equals marginal cost. Question 3: At what level of output and labor input are concession stand profits maximized for Ruby Red Movie Theater? What are two ways you could tell if this was correct from the table data? Answer: When 10 numbers of workers are employed in the production of 1025 concessions there is maximization of profits for Ruby Red Movie Theatre.This is because the immediate rate after it records a constant level of output. This will therefore indicate that at this rate marginal revenue equals the marginal cost Question 4: How are average total cost and marginal cost related to marginal product and average product? Answer: The main differences between average cost and marginal cost are that the average cost represents the sum of the total cost of goods divided by the total number of goods while the marginal cost increases in the cost of producing an additional unit of a good or service Question 5: What do you notice about marginal revenue and the price of output (average price of concession stand items in this case)? Answer: There is the indication that marginal revenue and price of output are the same. A marginal revenue of a competitive firm always equals its price and average revenue. In a monopoly however, as a result of change in price as the quantities sold changes, marginal revenue falls with an additional unit and tends to be equal to or less than the average revenue. Question 6: What is the maximum level of profit that can be generated from concession stand items? Answer: Maximum level of profits that can be generated from the concession stand items is 2000 Next Step: Once you have completed the table and answered questions 1–6 above, your next step will be to write your essay. The information from these questions should be used when writing the essay. See Unit V Assignment instructions. Discussion Review In economics, profit maximization can be described as the short run or long run process in which an organization determines the price, output, input levels that generate the highest profit rates. The current mainstream approach to microeconomics commonly commonly referred to as neoclassical economics tends to model the organization as a maximizer of profits (Zajac et al.,2017). Profit is thus referred to as the amount of money that is retained after all expenses are extracted from the sales of concessions, in this instance. Marginal revenue, also referred to as the marginal benefit can be referred to as the additional total revenue that is gotten as a result of a raise in the sales of products by one additional unit. In the process of production, marginal revenue is essential because it helps organizations in the process of decision making to ensure the maximization of revenues through analyzing additional costs and revenue. In the establishment of the marginal revenue there is a need for examining the differences that exist between the aggregate benefits received by an organization from the quantity of a commodity generated in the last period and current period with an additional raise in production rate. In the process of decision making in Ruby Red movie theatre, marginal revenue and marginal cost are highly essential. Ruby Red movie theatre is considered to fall in the category of perfectly competitive organizations thus an increase in revenue generated through the sale of additional units of concessions ends up being equal to the price the organization charges the buyers of concession tickets (Zajac et al.,2017). This is the case since competitive markets always generate the same prices for each and every unit of commodities sold regardless of the number of units sold. It is necessary to note that the sales of an organization never have an impact on the price of a commodity hence in this case of a perfectly competitive market, price levels are set by the organizations to be equal to the marginal revenue in that MR=P.This can be demonstrated by the graph below: Higher sales are not always an indication that an organization will make higher profit margins. It is thus necessary to note that profit maximization takes place marginal costs ought to be equal to the marginal revenue in the state MC=MR. This is to state that profit maximization takes place when highest profits are recorded at a specified sales level (Mei et al.,2018). It is necessary to note that maximization of profits occurs both in the long run and in the short run. In the discussion questions above, the marginal cost figures and the marginal revenue figures do not yield the same results at the production rate of 1290 hence an indication that there is no instance of profit maximization in Ruby Red movie theatre. This is also demonstrated by the fact that throughout the course of operations, profits generated on each day have been the same with the highest possible points achieved to be 2000 hence the maximum level of profits generated from the concession stands. The difference in the rates of marginal revenue and marginal costs can be demonstrated by the graph below: During the process of production, there are also marginal costs which refer to additional costs generated by Ruby Red movie theatre as a result of production of an additional unit of concession stands. Average cost which can also be referred to as the average total cost on the other hand can be demonstrated by the average fixed cost and average variable cost. (Mei et al.,2018). When the marginal cost value is less than the average cost value, then there is an indication that the average cost is low. The marginal cost tends to be high if the value of the marginal cost is higher than that of the average cost. A state of stability where MC=AC This is clear from the above table where when production is 2 units, Marginal cost is less than the average cost. At the production of the 4th unit, Marginal cost and average cost are equal (Zajac et al.,2017). Later on, Marginal cost and average costs are seen to be the same until the 20th production unit. As the level of production increases, Marginal cost and average cost fall completely and begins to rise at a later time. Conclusion It is thus necessary to note that the profit maximization function is applicable in all organizations regardless of the state as a perfect competition, monopoly, oligopoly or even monopolistic competition. Since monopolies do not encounter any forms of competition, it is necessary to note that its situation of decision making highly contrasts from that of the perfect competition where organizations play the roles of piece takers and are at liberty of selling higher or lower quantities at the actual market price. References Mei, J., Li, K., Tong, Z., Li, Q., & Li, K. (2018). Profit maximization for cloud brokers in cloud computing. IEEE Transactions on Parallel and Distributed Systems, 30(1), 190-203. Zajac, E. J., & Westphal, J. D. (2017). Intraorganizational economics. The Blackwell companion to organizations, 233-255 Instructions This assignment will give you an opportunity to apply the concepts taught in this unit. You will complete this assignment in two parts. · Part 1 requires a short written response. · Part 2 involves working problems based on provided background information. Examples of how to complete these problems can be found in the Unit I Introduction and associated videos presented in the unit. Both parts of the assignment will be completed using a worksheet on which you will show your work and provide your answers to the questions listed. A link to the worksheet is provided below the instructions. Part 1 Tyson and Ella work at the Ruby Red Movie Theater in town. After work, they decide to watch a movie. After purchasing their tickets, they stop by the concession stand and purchase popcorn, drinks, and candy. Use the circular flow diagram to describe the purchases that Tyson and Ella made and the services and goods that were provided to them. Your response must be at least 75 words in length. Part 2 Background information: As mentioned in Part 1 of this assignment, Tyson and Ella work at the Ruby Red Movie Theater. Tyson can produce 100 bags of popcorn or 50 hot dogs in one hour. His coworker, Ella, can produce 100 bags of popcorn or 30 hot dogs in an hour. Answer the following questions based on this information. Use the worksheet to show your work and provide your answers. Part A: If Tyson and Ella attempted to produce both popcorn and hot dogs, how many bags of popcorn and hot dogs could each produce individually per hour? What would be the total number of bags of popcorn and hot dogs produced by the two workers combined? (Show your work.) Part B: Calculate the opportunity cost of producing bags of popcorn for each worker. (Show your work.) Part C: Calculate the opportunity cost of producing hot dogs for each person. (Show your work.) Part D: Determine how many bags of popcorn should be produced by each worker per hour. (Show your work). If each worker should specialize in producing popcorn or hot dogs, explain why; use economic terminology that you have learned in this unit in your explanation. Finally, how many total bags of popcorn and hot dogs will be produced per hour by the two workers combined after specialization? Part E: What potential ethical issues could arise from making the decision to have both employees specialize in producing popcorn or hot dogs? Name and explain at least two issues. Unit I Assignment Worksheet You will complete this assignment in two parts. · Part 1 requires a short written response. · Part 2 involves completing a worksheet on which you will show your work and provide your answers to the questions listed below. Examples of how to complete these questions can be found in the Unit I Introduction and associated videos. All components of Parts 1 and 2 of the assignment will be completed using this worksheet, on which you will show your work and provide your answers to the questions listed. Once you have completed all components of the assignment, save and upload this worksheet into Blackboard. Name your file “Unit I Assignment Worksheet--YourName” (replace “YourName” with your own name). Make sure you include your name and class section at the top of this worksheet. Part 1 Tyson and Ella work at the Ruby Red Movie Theater in town. After work, they decide to watch a movie. After purchasing their tickets, they stop by the concession stand and purchase popcorn, drinks, and candy. Use the circular flow diagram to describe the purchases that Tyson and Ella made and the services and goods that were provided to them. Your response must be at least 75 words, which you can provide in the space below. Once you have completed Part 1, please complete Parts 2A–2E, which begin on the next page. Answer: According to Mao et al., (2018), circular-flow diagrams are a representation of the flow of commodities and money over two distinctions in an economy. Generally, it involves the exchange of revenues from households and goods and services produced by firms. Both Tyson and Ella work in the Theatre. Therefore, they provide services in the Theatre through working as laborers. In return, the theatre management pays for their services in form of wages. Tyson and Ella use their wages to purchase theatre supplies such as popcorn, drinks and movie tickets. The theatre receives the payments in form of revenues from the services provided by the theatre. Tyson and Ella pays for the theatre supplies hence this can be referred to as consumer expenditure. Part 2 Note: An example of how to make these calculations is provided in the Unit I videos Opportunity Cost and Law of Comparative Advantage. Background Information As mentioned in Part 1 of this assignment, Tyson and Ella work at Ruby Red Movie Theater. Tyson can produce 100 bags of popcorn or 50 hot dogs in one hour. His coworker, Ella, can produce 100 bags of popcorn or 30 hot dogs in an hour. Answer the following five questions based on this information. Remember to show your work. Production By Hourly Production Tyson Ella Bags of Popcorn Or 100 100 Hot Dogs 50 30 Part 2A If Tyson and Ella attempted to produce both popcorn and hot dogs, how many bags of popcorn and hot dogs could each produce individually per hour? What would be the total number of bags of popcorn and hot dogs produced per hour by the two workers combined? (Show your work below.)     Each Trying to Produce Both     Production of Popcorn   Production of Hot Dogs Tyson   50   25 Ella + 50 + 15 Total   100   40 Part 2B Calculate the opportunity cost of producing bags of popcorn for each worker. (Show your work.) Opportunity Cost of Popcorn Tyson:                 Hot Dogs Made   25       ÷ Bags of Popcorn Made 50       =       0.5                         For every 1 bag of popcorn Tyson makes, he sacrifices 0.5 hot dogs. Ella:                 Hot Dogs Made   15       ÷ Bags of Popcorn Made 50       =       0.3                         For every 1 bag of popcorn Ella makes, she sacrifices 0.3 hot dogs.     Opportunity Cost of Producing Popcorn Tyson   0.5 Ella   0.3 Question Answer (Tyson or Ella) Who has the lowest opportunity cost of producing popcorn?   Ella Part 2C Calculate the opportunity cost of producing hot dogs for each worker. (Show your work.) Opportunity Cost of Hot Dogs Tyson:                 Bags of Popcorn Made   50       ÷ Hot Dogs Made 25       =       2                         For every 1 hot dog Tyson makes, he sacrifices 2 bags of popcorn. Ella:                 Bags of Popcorn Made   50       ÷ Hot Dogs Made 15       =       3.3                         For every 1 hot dog Ella makes, she sacrifices 3.3 bags of popcorn.     Opportunity Cost of Producing Hot Dogs Tyson   2 Ella   3.3 Question Answer (Ella or Tyson) Who has the lowest opportunity cost of producing hot dogs?   Tyson Part 2D Determine how many bags of popcorn should be produced per hour by each worker. (Show your work). Who should specialize in producing popcorn? Ella Who should specialize in producing hot dogs? Tyson       Specialization       Production of Bags of Popcorn   Production of Hot Dogs Tyson     0   50 Ella     100   0 Total Production With Specialization 100 50 Total Without Specialization 100   40 Difference   0   +10 Part 2E What potential ethical issues could arise from making the decision to have both employees specialize in producing popcorn or hot dogs? Name and explain at least two issues. Answer: Issue 1: Over dependency Employers would end up depending on both the workers if they were to produce the same type of good or service (Ozak et al., 2018). There would be a lack of specialization since either of the workers could be involved in production of the good. For example, if two workers were producing the same type of a commodity, the employer would not be bothered if one worker failed to show up at work. However, specialization of different goods would ensure all workers show up at their respective work fields. Issue 2: Lack of creativity Since the employees would work together towards the production of either hotdog or popcorn, none could be accredited the success of the final product. The creativity instincts of the employees would be unsatisfied (Ozak et al., 2018). The workers would not be proud or pleasant of the final product since none could claim that it is her or his work/efforts. References Depetris-Chauvin, E., & Özak, Ö. (2018). The origins of the division of labor in pre-modern times. Mao, J., Li, C., Pei, Y., & Xu, L. (2018). Value Flow of a Circular Economy. In Circular Economy and Sustainable Development Enterprises (pp. 127-149). Springer, Singapore. Instructions Ruby Red Movie Theater has experimented with using different numbers of workers in the concession area of the theater as well as at the ticket counter. In these experiments, Tracy, the manager of the theater, collected data on the total number of buckets of popcorn as well as movie ticket sales produced per day. Tracy would like for you to analyze the data and tell her how many workers she should use each day in the concession stand area for producing popcorn and in the ticket area for producing movie ticket sales. She would also like to know how many buckets of popcorn and movie tickets will be produced/sold by those workers per day. Access the Unit IV Assignment Worksheet in Blackboard. You will complete the following in this worksheet: Part 1 Complete the tables calculating the average product, marginal product, total value product, average value product, and marginal value product. Part 2 Answer the five questions after each table as a guide to use when writing your essay. Part 3 Write an essay of at least 750 words in which you address the following: · Describe your calculations in the table. · Indicate the number of workers used per day where the law of diminishing marginal returns begins for producing buckets of popcorn. · Indicate the number of workers used per day where the law of diminishing marginal returns begins for movie ticket sales production. · Describe the shapes of both the average product and marginal product curves, and include how they compare to the average value product and marginal value product curves for both buckets of popcorn and movie tickets. · Indicate the optimal number of workers per day to use and the corresponding total number of buckets of popcorn to produce. Make sure you indicate how you found this optimal number of workers and total number of buckets of popcorn. · Indicate the optimal number of workers per day to use and the corresponding total number of movie tickets to sell (produce). Make sure you indicate how you determined this optimal number of workers and total number of movie tickets. Include a copy of the completed tables and your question answers from the worksheet after your essay (e.g., on the page following your reference page, if you have one). The minimum word count will not include the information from the worksheet (tables and answers). Any sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA Style. Unit IV Assignment Worksheet This worksheet is intended to help you develop the information you will use to complete your Unit IV Essay. You are expected to include the completed tables in your Unit IV Essay. The additional questions after the tables are intended to help you formulate your ideas concerning what you will write in your essay. NOTE: Just completing this worksheet does not constitute completing the Unit IV Assignment. The information from the worksheet must be incorporated into your essay submission. Follow the instructions below. Instructions: 1. Complete all parts of this Unit IV Assignment Worksheet. 2. Answer the questions listed after the tables; these will help you formulate your ideas for writing the essay part of this unit’s assignment. You are expected to expand on these questions in your writing. 3. Include the tables and your question responses from this worksheet as an appendix at the end of your essay. On the following pages, you will be provided with tables showing the different levels of output that are possible as the number of workers used per day changes. Using the information, you learned from this unit’s textbook readings for this class as well as the information in the Unit IV Lesson, include the following: 1. Complete the two tables below; one is for production of concession stand item sales while the other is for production of movie ticket sales. 2. Answer all of the questions listed below each table; as mentioned, these answers will help you when formulating your thoughts for the essay part of your Unit IV Assignment. Number of Workers per Day Concession Items Produced per Day Average Product Marginal Product Average Price of Concession Items Total Value Product Average Value Product Marginal Value Product Price of Worker per Day 0 0 0 - $8.00 0 - $120.00 2 100 50 100 $8.00 800 400 800 $120.00 4 400 100 150 $8.00 3200 800 1200 $120.00 6 750 125 175 $8.00 6000 1000 1400 $120.00 8 900 112.5 75 $8.00 7200 900 600 $120.00 10 1,025 102.5 62.5 $8.00 8200 820 500 $120.00 12 1,125 93.75 50 $8.00 9000 750 400 $120.00 14 1,200 85.7 37.5 $8.00 9600 685.6 300 $120.00 16 1,250 78.1 25 $8.00 10000 624.8 200 $120.00 18 1,280 71.1 15 $8.00 10240 568.8 120 $120.00 20 1,290 64.5 5 $8.00 10320 516 40 $120.00 22 1,290 58.6 0 $8.00 10320 468.8 0 $120.00 24 1,280 53.3 -5 $8.00 10240 426.4 -40 $120.00 Questions: Use these questions to help you formulate your ideas for writing the Unit IV Essay. Using the information from the table you completed, answer the following questions: 1. At what number of workers used per day does the law of diminishing marginal returns begin? How did you determine this number? The law of diminishing returns begins at number 8 of workers used per day. I determined this number through the understanding that the law of diminishing marginal returns means that although there is the adding of an additional factor of production, smaller increases in output are generated. 2. At what number of workers used per day does negative marginal returns begin? How did you determine this number? Where there is an increment of two workers on the already existing workers daily, the concession is seen to be increasing with the increase in the number of workers. However, a sharp rise in production is recorded once fourteen workers are achieved then it starts to fall drastically. Where fourteen workers are recorded is when the law of diminishing returns kicks off. Here, no matter how many workers are increased, production will decrease. Negative marginal returns begin at number 24 of workers used per day. This is demonstrated by the presence of the negative mark which states that the additional unit yields a decrease in total production. 3. What similarities do you see between the shape of the Average Product curve and the Average Value Product Curve? Both the average product and the average value product originate from zero and rise slightly until they reach the midpoint. However, the average product falls whereas the average value product rises further. Both the curves end at a constant term. 4. What similarities do you see between the Marginal Product Curve and the Marginal Value Product curve? Marginal product and marginal value product curve are highly similar in that as production factors increase both of them decrease. They pick up at reduction factor 1 with higher points and end at extremely low points. 5. What is the optimal number of workers per day to use at the theater’s concession stand to produce concession stand item sales? How did you determine this optimal number? The Optimum number of workers to be used per day is two. The optimal number is determined by the presence of clustered together subgroups in a dotted graph. Determination of the optimal number is always a complex task. Optimal numbers can be determined through the determination of sample size which involves selecting the number of observations or replicates to be included in a statistical sample. Number of Workers per Day Movie Tickets Produced per Day Average Product Marginal Product Average Price of Movie Tickets Total Value Product Average Value Product Marginal Value Product Price of Worker per Day 0 0 0 - $10.00 - - - $120.00 1 227 227 227 $10.00 2270 2270 2270 $120.00 2 615 307.5 388 $10.00 6150 3075 3880 $120.00 3 935 311.7 320 $10.00 9350 3117 3200 $120.00 4 1,185 296.3 250 $10.00 11850 2963 2500 $120.00 5 1,427 285.4 242 $10.00 14270 2854 2420 $120.00 6 1,631 271.8 204 $10.00 16310 2718 2040 $120.00 7 1,788 255.4 157 $10.00 17880 2554 1570 $120.00 8 1,800 225 12 $10.00 18000 2250 120 $120.00 9 1,800 200 0 $10.00 18000 2000 0 $120.00 10 1,789 178.9 -11 $10.00 17890 1789 -110 $120.00 11 1,757 159.7 -32 $10.00 17570 1597 -320 $120.00 12 1,679 139.9 -78 $10.00 16790 1399 -780 $120.00 Questions: Use these questions to help you formulate your ideas for writing the Unit IV Essay. Using the information from the table you completed, answer the following questions: 1. At what number of workers used per day does the law of diminishing marginal returns begin? How did you determine this number? Where there is an increment of one worker on the already existing workers daily, the number of sales in movie tickets per day is seen to be increasing with the increase in the number of workers. However, a sharp rise in production is recorded once four workers are achieved then it starts to fall drastically. Where four workers are recorded is when the law of diminishing returns kicks off. 2. At what number of workers used per day do negative marginal returns begin? How did you determine this number? Here, no matter how many workers are increased, production will decrease. This tends to continue until despite the increase there is zero production taking place as demonstrated when nine workers are present. Negative marginal returns begin at number 10 of workers used per day. This is demonstrated by the presence of the negative mark which states that the additional unit yields a decrease in total production. 3. What is the optimal number of workers per day to produce movie ticket sales? How did you determine this optimal level? Optimal number of workers used per day is one. The optimal number is determined by the presence of clustered together subgroups in a dotted graph. Determination of the optimal number is always a complex task. Optimal numbers can be determined through the determination of sample size which involves selecting the number of observations or replicates to be included in a statistical sample. Assignment Review The Law of diminishing returns is considered a fundamental or rather essential principle when it comes to micro and macroeconomics since it plays a substantial role, especially in the theory of production. Economics defines diminishing returns as a reduction in marginal output of a production process as the amount of a single production factor incrementally rises considering the fact that all aspects of production are held constant, a state commonly referred to as ceteris paribus. The Law of diminishing returns can also be referred to as the Law of diminishing marginal productivity. It states that in the production process, an increase in a production factor by one unit while ensuring that all other aspects of production are held at a constant state will at some point yield lower output unit per raise in input level (Machlup,2020) Since the production process can produce co-products, the modern viewpoint of the law of diminishing returns prefers that all production factors remain equal. In this case, the concept of diminishing returns is explained by the number of workers used per day to produce concession items. In an experiment where there is an increment of two workers on the already existing workers daily, the concession is seen to be increasing with the increase in the number of workers (Machlup,2020). However, a sharp rise in production is recorded once fourteen workers are achieved then it starts to fall drastically. Where fourteen workers are recorded is when the law of diminishing returns kicks off. Here, no matter how many workers are increased, production will decrease. This can be demonstrated in the graph below: In another experiment where there is an increment of one worker on the already existing workers daily, the number of sales in movie tickets per day is seen to be increasing with the increase in the number of workers. However, a sharp rise in production is recorded once four workers are achieved then it starts to fall drastically. Where four workers are recorded is when the law of diminishing returns kicks off. Here, no matter how many workers are increased, production will decrease (Silverman,2020). This tends to continue until despite the increase there is zero production taking place as demonstrated when nine workers are present. Further addition of workers to ten generates negative returns. This can be demonstrated in the graph below: The average product is the total units of output yielded per unit of a production input while ensuring that all production factors are held at a constant. A higher average product indicates that an aspect of production is highly effective. On the other hand, the average value product can be described as the value generated per production factor while ensuring constant elements (Silverman,2020). A rise or fall in the number of workers or the number of hours caused by each worker raises the average product factor per contingency or sales. In question 1, the Average Product and Average Value Product curves are similar in that at first, they rise then records slight falls as the number of workers are increased as seen: In question 2, it is evident that the Marginal Product curve and the Marginal Value Product curve are similar in that at some point they experience a rise and fall. However, the marginal product curve kicks off with a high whereas the marginal value product kicks off at an average rate then rises at around fifteen production factors. The marginal value product ends up recording diminishing marginal returns as demonstrated below: Determination of the optimal number is always a complex task. Optimal numbers can be determined by determining sample size, which involves selecting the number of observations or replicates in a statistical sample. This is because the sample size is significant, with a substantial objective of making inferences from populations (Silverman,2020). Here, the sample size to be utilized is determined following the costs and the need for offering statistical power. In question 1, the optimal number of workers to be used per day is two. The optimal number is determined by the presence of clustered together subgroups in a dotted graphs shown In question 2, the optimal number of workers used per day is one. The optimal number is determined by the presence of clustered together subgroups in a dotted graph as demonstrated below Conclusion It is thus necessary to note that the Law of diminishing returns does not trigger a fall in all production factors but acts as a point of definition on the production curve where if a producer continues to produce output by an additional unit, there will be the incurrence of loss thus yielding negative returns. Where returns are considered diminishing, the output is seen to maintain a state of positivity while the efficiency rate decreases with the decrease in productivity. References Silverman, B. S. (2017). Organizational economics. The Blackwell companion to organizations, 467-493. Machlup, F. (2020). On the meaning of the marginal product (pp. 191-206). Routledge. Instructions You are continuing to serve as a private economic consultant for Ruby Red Movie Theater in town. The theater would like to have your input concerning what prices they should charge for movie tickets and the average prices for concession stand items. Access the Unit II Assignment Worksheet in Blackboard. Assignment Instructions: Complete the Unit II Assignment Worksheet. This worksheet contains a series of questions concerning your reviews of the movie ticket and concession items; be sure to answer them all and put your answers in the worksheet. Once you have completed your worksheet, use the information you gathered there to write an essay describing your calculations, what you suggest is the equilibrium price and quantity of movie tickets and concession items for Ruby Red Movie Theater, and factors that could cause the supply and demand curves to shift. Specifically, address the information from your worksheet when writing your essay, as well as the following: · The movie theater manager has seen a dramatic decrease in the quantity of movie tickets and concession items purchased over the last year. Indicate the following: · two factors that might have caused the demand curve to shift to the left (decrease) for movie tickets, and · two factors that might have changed and caused the demand for concession items to shift to the left (decrease). Your essay must be at least two written pages, not counting the references page. Be sure to include an introduction and a title page. You are required to use at least two peer-reviewed scholarly sources. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA Style. Copy and paste your essay into the Word document on the page indicated at the end of the worksheet. This means that everything for this assignment—the completed worksheet, all graphs, and the completed essay—should be provided in one Word document that you will upload via SafeAssign. Unit II Assignment Worksheet This worksheet is intended to help you develop the information you will use to complete your Unit II Assignment. Completing only this worksheet does not constitute completion of the Unit II Assignment. You need to complete all parts of the assignment, which also include writing an essay about the information you obtain in this worksheet. You will copy and paste your essay at the end of this document where indicated, and then upload your assignment via SafeAssign. Instructions: 1. Complete the Unit II Worksheet. 2. Use your Unit II Worksheet responses to help you formulate your ideas for writing your essay; you are expected to expand on these questions when writing your essay. 3. Include your graphs in the areas indicated in this worksheet. 4. Copy and paste your essay into this worksheet, then upload the entire assignment via SafeAssign. Part 1 Given the quantity of total movie tickets and total concession stand items consumed in a month and the total utility derived at Ruby Red Movie Theater for each, calculate the marginal utility and the marginal utility per dollar for movie tickets and average concession stand items. Step 1: Calculate marginal utility and marginal utility per dollar for movie tickets. Quantity of Tickets Consumed Total Utility Marginal Utility Movie Ticket Price Marginal Utility Per Dollar for Movie Tickets 0 0 --- --- --- 200 150 0.75 $10.00 0.075 400 275 0.025 $10.00 0.0025 600 375 0.50 $10.00 0.05 800 450 0.375 $10.00 0.0375 1,000 500 0.25 $10.00 0.025 1,200 525 0.125 $10.00 0.0125 1,400 525 0 $10.00 0 Step 2: Calculate marginal utility and marginal utility per dollar for concession stand items. Quantity of Concession Stand Items Consumed Total Utility Marginal Utility Average Item Price Marginal Utility Per Dollar for Concession Items 0 0 --- --- --- 400 200 0.50 $15.00 0.0333 800 375 0.4375 $15.00 0.1292 1,200 525 0.375 $15.00 0.025 1,600 650 0.3125 $15.00 0.0208 2,000 750 0.25 $15.00 0.0167 2,400 825 0.1875 $15.00 0.0125 2,800 875 0.125 $15.00 0.0083 Part 1 Question 1: What quantity combination of movie tickets and concession stand items would maximize utility? Your Answers: 375 Quantity of Movie Tickets 600 Quantity of Concession Stand Items Part 1 Question 2: What is the price of movie tickets and average price of concession stand items? Your Answers: 10 Movie Ticket Price 800 Concession Stand Items Average Price Part 2 Given the quantity of total movie tickets and total concession stand items consumed in a month and the total utility derived at Ruby Red Movie Theater for the change in movie ticket prices, calculate the marginal utility and the marginal utility per dollar for movie tickets and concession stand items. Step 1: Calculate marginal utility and marginal utility per dollar for movie tickets. Quantity of Tickets Consumed Total Utility Marginal Utility Movie Ticket Price Marginal Utility Per Dollar for Movie Tickets 0 0 --- --- --- 200 150 0.75 $12.00 0.0625 400 275 0.625 $12.00 0.0521 600 375 0.5 $12.00 0.0417 800 450 0.375 $12.00 0.03125 1,000 500 0.25 $12.00 0.0208 1,200 525 0.125 $12.00 0.0104 1,400 525 0 $12.00 0 (Continue on next page) Step 2: Calculate marginal utility and marginal utility per dollar for concession stand items. (Note: The information here has not changed from Part 1, Step 2.) Quantity of Concession Stand Items Consumed Total Utility Marginal Utility Average Item Price Marginal Utility Per Dollar for Concession Items 0 0 --- --- --- 400 200 0.5 $15.00 0.0333 800 375 0.4375 $15.00 0.0292 1,200 525 0.375 $15.00 0.025 1,600 650 0.3125 $15.00 0.0208 2,000 750 0.25 $15.00 0.0167 2,400 825 0.375 $15.00 0.025 2,800 875 0 $15.00 0 Part 2 Question 1: What quantity combination of movie tickets and concession stand items would maximize utility now that the price of movie tickets has changed? Your Answers: 375 Quantity of Movie Tickets 200 Quantity of Concession Stand Items Part 2 Question 2: What is the price of movie tickets? Your Answer: 15 Movie Ticket Price Part 3 Given the total quantity of movie tickets and total concession stand items consumed in a month and the total utility derived at Ruby Red Movie Theater for the change in concession stand prices, calculate the marginal utility and the marginal utility per dollar for movie tickets and concession stand items. Step 1: Calculate marginal utility and marginal utility per dollar for movie tickets. (Note: The information here is the same as in Part 1, Step 1.) Quantity of Tickets Consumed Total Utility Marginal Utility Movie Ticket Price Marginal Utility Per Dollar for Movie Tickets 0 0 --- --- --- 200 150 0.75 $10.00 0.075 400 275 0.625 $10.00 0.0625 600 375 0.5 $10.00 0.05 800 450 0.375 $10.00 0.0375 1,000 500 0.25 $10.00 0.025 1,200 525 0.125 $10.00 0.0125 1,400 525 0 $10.00 0 (Continue on next page) Step 2: Calculate marginal utility and marginal utility per dollar for concession stand items. Quantity of Concession Stand Items Consumed Total Utility Marginal Utility Average Item Price Marginal Utility Per Dollar for Concession Items 0 0 --- --- --- 400 200 0.5 $20.00 0.025 800 375 0.4375 $20.00 0.021875 1,200 525 0.375 $20.00 0.01875 1,600 650 0.3125 $20.00 0.015625 2,000 750 0.25 $20.00 0.0125 2,400 825 0.1875 $20.00 0.009375 2,800 875 0.125 $20.00 0.00625 Part 3 Question 1: What quantity combination of movie tickets and concession stand items would maximize utility now that the average price of concession items has changed? Your Answers: 600 Quantity of Movie Tickets 375 Quantity of Concession Stand Items Part 3 Question 2: What is the average price concession stand items? Your Answer: 20 Concession Stand Items Average Price Part 4 Answer the following from the calculations you made above: Step 1: In regard to movie tickets, report the price and quantity you calculated in Questions 1 and 2 from Parts 1 and 2. Movie Tickets Price Quantity Part 1: Question 1 and Question 2 10 600 Part 2: Question 1 and Question 2 15 800 Task: Graph the demand curve for movie tickets from the information above. Provide a copy of your graph in the box below. You can use a computer program such as Microsoft Excel or even draw the demand curve for movie tickets by hand, then take a clear, easy-to-read photo of it and insert it. Be sure to resize your graph or photo so that it completely fits in the box. Step 2: In regard to concession stand items, report the price and quantity you calculated in Questions 1 and 2 from Parts 1 and 2. Concession Stand Items Average Price Quantity Part 1: Question 1 and Question 2 10 200 Part 2: Question 1 and Question 2 15 375 Task: Graph the demand curve for concession stand items from the information above. Provide a copy of your graph in the area below. You can use a computer program such as Microsoft Excel or even draw the demand curve for concession stand items by hand, then take a clear, easy-to-read photo of it and insert it. Be sure to resize your graph or photo so that it completely fits in the box. Part 5 Given the price and quantity information below, graph the supply curve for movie tickets and concession stand items on separate graphs. Step 1: Graph the supply of movie tickets given the prices and quantities supplied below. Movie Ticket Prices and Quantity Supplied Movie Ticket Price Quantity Supplied of Movie Tickets $2 1,800 $3 1,800 $4 1,800 $5 1,800 $6 1,800 $7 1,800 $8 1,800 $9 1,800 $10 1,800 $11 1,800 $12 1,800 $13 1,800 $14 1,800 $15 1,800 Insert graph here: To create your graph, you can use a computer program such as Microsoft Excel or even draw the demand curve for movie tickets by hand, then take a clear, easy-to-read photo of it and insert it. Be sure to resize your graph or photo so that it completely fits in the box. Part 5 Question 1: Why is the quantity supplied of movie tickets the same regardless of the price of movie tickets? Enter your response in the box below. There is an inverse relationship between the supply and prices of goods and services when demand is unchanged. If there is an increase in supply for goods and services while demand remains the same, prices tend to fall to a lower equilibrium price and a higher equilibrium quantity of goods and services. If there is a decrease in supply of goods and services while demand remains the same, prices tend to rise to a higher equilibrium price and a lower quantity of goods and services. The same inverse relationship holds for the demand for goods and services. However, when demand increases and supply remains the same, the higher demand leads to a higher equilibrium price and vice versa. Step 2: Graph the supply of concession stand items given the prices and quantities supplied below. Concession Stand Item Prices and Quantity Supplied Average Concession Stand Price Quantity Supplied of Concession Stand Items $1 500 $2 700 $3 900 $4 1,100 $5 1,300 $6 1,500 $7 1,700 $8 1,900 $9 2,100 $10 2,300 $11 2,500 $12 2,700 $13 2,900 Draw or insert graph here: (Make sure your graph fits entirely in the box.) Part 6 Graph the supply and demand for movie tickets and concession stand items. Step 1: Graph the supply and demand for movie tickets on one graph. Draw or insert graph here: (Make sure your graph fits entirely in the box.) Step 2: Estimate the equilibrium price and quantity for movie tickets: Equilibrium Price: 7.5 Equilibrium Quantity: 1800 Step 3: Graph the supply and demand for concession stand items on one graph. Draw or insert graph here: (Make sure your graph fits entirely in the box.) Step 4: Estimate the equilibrium price and quantity for concession stand items: Equilibrium Price: 7.5 Equilibrium Quantity: 1800 1 Lesson Learned from Unit II Assignment Worksheet 2 Lesson Learned from Unit II Assignment Worksheet Utility in economics has been utilized in the process of modelling value or worth. It has been widely used in microeconomics, and as a utility function, it is very prominent in modern economic theory as a representative of a single consumers ordering preference over an option set, although it is incomparable among customers. It is necessary to note that utility concept is usually personal and highly reliant on choice rather than generated pleasure and is rigorously highlighted than the concept deemed as original hence making it highly useful and controversial for ethical decisions (Ethayarajh, et al 2020). The capability to satisfy wants is thus defined as utility. The more one seeks to have goods the more utility is generated. This therefore prompts the view that utility is distinctive. Utility obtained from the goods to be consumed differ in accordance with time and place. Measures of utility consist of total utility which is the total satisfaction generated from consuming a particular set of goods and the marginal utility which is the difference in total utility as a result of the utilization of an extra unit of good. Demand In economics, demand can be viewed as the quantity of a commodity that a consumer is willing and able to purchase at a particular price over a specified period. To illustrate the demanded quantities by a consumer at different price levels, a demand curve is drawn. When there is a change in the price of a good, there is a movement in demand. It is necessary to note that a shift in demand also triggers a consecutive shift in the equilibrium. The demand curve may exhibit a rightward or leftward shift. A rightward shift demonstrates increased demand levels due to favorable changes in non-price variables but at the same price. A leftward shift demonstrates a decrease in demand when the price maintains a constant state and unfavorable transformations in other determinants apart from price (Gölgeci et al.,2019). 3 Movie tickets and consensus are considered an inferior good; hence a change in income of an individual may have a huge impact on it. As income continues to grow, the level of demand decreases, thus triggering the demand to decrease as income increases. Therefore, an increase in income makes the demand curve shift to the left. This is because income growth may lead to replacing movie tickets with a television set. There is also the presence of complements where the fall in the price of one commodity may trigger a rise in the demand for another commodity. When two goods are utilized together, a shift in demand to the left tends to occur. If, however, there is the speculation that there will be a fall in the prices of consensus and movie tickets in the future, consumers will stop buying as they wait for the fall in prices, thus making the demand curve shift to the left (Gölgeci et al.,2019). It is necessary to note that demand for goods and services is not always constant. Therefore, the demand curve constantly shifts either right or left. However, when one or more demand factors other than price transform, then there is a shift in demand. Thus, a shift in demand exhibits the transformations in demand at each stipulated price due to transformations in non-price determinants such as income, price of goods related, consumer taste and preferences, and customer expectations. 4 References Gölgeci, I., Karakas, F., & Tatoglu, E. (2019). Understanding demand and supply paradoxes and their role in business-to-business firms. Industrial Marketing Management, 76, 169-180. Ethayarajh, K., & Jurafsky, D. (2020). Utility is in the eye of the user: A critique of NLP leaderboards. arXiv preprint arXiv:2009.13888. Instructions You are continuing to serve as a private economic consultant for Ruby Red Movie Theater in town. The theater is starting to work on its marketing plan to draw more customers into the theater. Manager Tracy has provided you with the necessary information concerning various characteristics of the theater’s market. Complete the Unit VI Assignment Worksheet. This worksheet contains information and a series of questions concerning the market structure for the theater. Each of your answers must be at least 300 words in length. APA Style will not be required for this assignment. Once you have completed the worksheet, upload your completed Unit VI Assignment for review. Unit VI Assignment Background Information Ruby Red Theater is now starting to work on its marketing plan to draw more customers into the theater. Manager Tracy has provided you with the following information and asked for your help: · There are four movie theaters in the town (Ruby Red, Graysons Guild, Rynes Reel 2 Reel, and Garretts Dollar Movies). · The city has passed a law banning any other movie theaters from building within the city limits. · All movie theaters offer similar types of concession stand items at similar prices. · The average ticket prices per movie at each theater are: Movie Theater Average Ticket Price Ruby Red Movie Theater $10.00 Grayson’s Guild Movie Theater $8.00 Ryne’s Reel 2 Reel Movie Theater $8.00 Garrett’s Dollar Movies $1.00 · The first movie and last movie start times for the four theaters are: Movie Theater First Start Time Last Start Time Ruby Red Movie Theater 12:00 noon 11:00 p.m. Grayson’s Guild Movie Theater 10:00 a.m. 11:00 p.m. Ryne’s Reel 2 Reel Movie Theater 10:00 a.m. 11:00 p.m. Garrett’s Dollar Movies 12:00 noon 11:00 p.m. · The average number of people who purchase tickets at each movie theater in town per month is: Movie Theater Average Monthly Movie Ticket Sales Ruby Red Movie Theater 15,000 Grayson’s Guild Movie Theater 23,000 Ryne’s Reel 2 Reel Movie Theater 25,750 Garrett’s Dollar Movies 25,200 · Graysons Guild and Rynes Reel 2 Reel offer a special Two-for-One Tuesday where you can purchase two tickets for the price of one. · Graysons Guild and Rynes Reel 2 Reel just purchased the latest Goldby Surround Sound for their movie theaters. · You recall that your economics instructor at Columbia Southern University had presented you with a table that outlined the four market structure types and their characteristics. After searching through your old notes from Columbia Southern University, you found the table, which is presented below: Characteristic Perfect Competition Monopolistic Competition Oligopoly Monopoly Number of Firms Vast Many Few Dominant Firms One Type of Product Homogeneous Differentiated Differentiated Unique, Limited, No Close Substitute Size of Firm Relatively Small Relatively Small Average to Large Large Market Share Small Small Average/High Absolute Barriers to Entry and Exit None Low High Extreme Price-Setting Power None, Price Taker Low, Price Maker High, Price Maker High, Price Maker Long-Run Economic Profits None None Possible Possible Answer the questions on the next page. Your answers must be a minimum of 300 words in length for each question. Unit VI Assignment Part 1: Using the provided table that outlined the various characteristics of each market structure type and the information provided by Manager Tracy from Ruby Red Movie Theater, define the market structure (perfectly competitive, monopolistically competitive, oligopoly, or monopoly) for the movie theater market of this town. Discuss each market structure characteristic as it either relates or does not relate to the movie theater market for this town. Make sure you address all four market structures and each market structure characteristic in your discussion. If you need additional space, please feel free to insert an additional page. Answer: The market structure of the movie theater in this town is an oligopolistic market. This is because of the various reasons; first, it has few dominant firms. The market has only four movie theaters; Ruby Red, Graysons Guild, Rynes Reel 2 Reel, and Garretts Dollar Movies. Secondly, the market is characterized by homogeneity. The four movie theatres provide similar types of concession stand items. They both sell movies to the target audience. Besides, these firms find ways to differentiate their products despite being in the same movie business. They differentiate their products by differentiating the first and last start times, ticket prices, and special offers. The market is also considered an oligopolistic market because of the strong barriers to entry (Thong, 2018). There is no room for entry in this market as the city has introduced laws banning the entry of other firms into the city. The market is also characterized by interdependence due to large few firms and limited competition. Actions of one firm influence the actions of other firms in the market. The movie theatre market of this town is not a perfect competition market because perfect competition is characterized by a vast number of firms, lack of barrier to entry, lack of price-setting power, and lack of differentiation. This towns market consists of few firms, has barriers of entry, has price-setting power, and considers differentiation. The towns market is also not a monopolistic competition market. This is because the market consists of many firms with low barriers to entry and low-price setting power, while the towns market has few firms, high barriers to entry, and high setting power. The towns theatre market is also not a monopoly market. This is because a monopoly market has only one firm while the towns market has four firms and has unique products while the town’s market has similar products. Part 2: Given the market structure you have identified for the movie theater industry in this town, what marketing ideas would you recommend for Ruby Red Movie Theater? If you need additional space, please feel free to insert an additional page. Answer: The market structure identified for the movie theater industry of this town is an oligopolistic market structure. Ruby Red Movie Theater can adopt various marketing ideas and strategies to gain a competitive advantage and stabilize its position in the market. The first recommendation is that Ruby Red Theatre can consider extensive advertisement of its services. It can consider boosting its advertising intensity to inform the target audience about its products. Extensive advertising would strengthen the brand recognition of the company and attract many audiences, increasing its competitive advantage. Secondly, Ruby Red Theatre can consider bundling its services or products. Bundle pricing is a technique where several services or products are grouped together and sold as a single unit at a reduced price (Qian, Bingjing, & Chuanhai, 2021). This technique encourages consumers to purchase more products. Through bundle pricing, Ruby Red Theatre can increase and boost its movie sales, as it’s the company with the lowest monthly movie ticket sales. The third recommendation is based on customer service and product quality. Due to the high market share and few firms in the market, Ruby Red Theatre can focus on offering high customer service to reduce the extent of its customers switching to other competitors. High customer service increases customer loyalty and retention. Besides, it can also increase the quality of its products such that customers see the value of their money through the purchase. Finally, since an oligopolistic market entails differentiation of products, Ruby Red Theatre can extensively invest in innovation, research, and development to find a unique and distinctive way to differentiate its services. Although the four firms sell movie products to customers, finding unique ways to differentiate products is essential (Goodwin et al., 2019). Innovation, research, and development assist a company in determining customers preferences and coming up with new ideas to differentiate products. Customers highly prefer purchasing unique products that make them different from other customers. Unique differentiation would attract customers, increase customer loyalty, eventually boosting sales and competitive advantage. Part 3 Grayson’s Guild Movie Theater has made an offer to purchase Ryne’s Reel 2 Reel Movie Theater. The merger would result in both theaters operating under the same business ownership. What problems would this merger cause for Ruby Red Movie Theater? Could the government have issues with this merger? If you need additional space, please feel free to insert an additional page. Answer: A merger takes place when two or more firms that are separately owned consolidate under one ownership. Independent decision-making and intense competition are some factors that encourage mergers in an oligopoly market. These mergers can significantly affect other firms within the same market. A merger between Graysons Guild Theatre and Rynes Reel 2 Reel Theatre would mean that the resulting company is larger with many resources and a high ability to influence other competitors. The merger would cause various problems to Ruby Red Theatre. First, it would increase interdependence. An oligopolistic market is characterized with independence as any actions taken by one firm affect the actions of other firms in the industry (Thong, 2018). The merger between these two firms would highly increase interdependence as the resulting or new firm would have a lot of power. For example, the new firm can decide to lower its prices, influencing Ruby Red Theatre to lower its prices. This would affect Ruby Red more than the combined company as it has fewer resources and would end up not benefiting enough. The merger would also make the market more competitive for Ruby Red Theatre. Due to the few numbers of firms in an oligopolistic market, when one firm makes changes, the others respond in the same fashion to remain competitive (Mankiw, 2020). Due to the merger, the resulting firm would have many resources and capabilities to make various changes in the market, therefore, making the market more competitive to Ruby Red. Ruby Red Theatre would have to make some changes and move in the same fashion to remain competitive in the market. Besides, the merger would reduce the competitive ability of Ruby Red. This is because the new firm would have many resources like finance, human resource, expertise, and a larger market share and size than Ruby Red Theatre. The government couldnt have issues with the merger, and they cannot prevent these two firms from merging. This is because they are already existing and therefore not affected by the new regulation. References Goodwin, N., Harris, J. M., Nelson, J. A., Rajkarnikar, P. J., Roach, B., & Torras, M. (2019). Principles of economics in context. Routledge. https://doi.org/10.4324/9780429438752 . Mankiw, N. G. (2020). Principles of economics. Cengage Learning. Qian, Z., Bingjing, L., & Chuanhai, J. (2021). Competitive Analysis of Contracts with Mixed Bundling in Oligopoly Markets. Journal of Finance and Economics, 47(07), 63-77. https://doi.org/10.16538/j.cnki.jfe.20210517.301 . Thong, B. G. H. (2018). Economics for Gce a Level. World Scientific Publishing Company Pte Limited.