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magine you are acting as a consultant for a new bottled juice drink start-up company in the UK. Based on economic principles expla

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  • Post Date 2018-11-09T08:41:19+00:00
  • Post Category Assignment

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magine you are acting as a consultant for a new bottled juice drink start-up company in the UK. Based on economic principles explain how you would decide the best output (number of bottles) for the company based on costs and price (you may specify additio

BUSINESS ECONOMICS AND ACCOUNTING

Questions:

1.Imagine you are acting as a consultant for a new bottled juice drink start-upcompany in the UK. Based on economic principles explain how you would decide the best output (number of bottles) for the company based on costs and price (you may specify additional details as you wish). If cost of equipment renting for this start-up company increases, how would this impact your analysis? Critically discuss possible entry barriers for this start-up and how incumbent juice drink producers could engage in entry-deterring strategies to protect their market shares from game-theoretical perspectives. Which entry- deterring strategy would you choose and why?

(100 marks)

2.Critically discuss the market structure of internet providers in the UK. Which factors can impact the market structure in this industry? Can you find any specific evidence and examples to support your arguments? Explain the consequences of this market structure for business and national welfare from economics and game-theoretical perspectives. If the UK government decides to give £10,000 to each internet provider as a subsidy, would this improve market structure or national welfare?

(100 marks)

3.Imagine you are a senior manager of a company in the poultry industry in a country of your choice (you may specify additional details as you wish). Explain how import tariffs and quotas would affect your firm’s competitive advantage in international trade. Which factors could affect international trade of poultry and which main aspects are regulated by the WTO? How would these and other barriers to international trade affect your consumers, government revenue, and national welfare?


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