ECO 201 Final Project Essay

ECO 201 Final Project Guidelines and Rubric

Overview
The final project for this course is the creation of a research paper. Every day, millions of economic choices are made by people—from what brand of soap to buy
to how many employees to hire for a factory. Microeconomics provides us with the tools, models, and concepts to better understand individual choices in the
marketplace and how resource allocation is determined at the micro level. The decisions made by individuals and households impact the market and influence
decisions made by firms. Firms use these tools as a way to determine pricing, output, and profit maximization. As a student of economics, you can use the
microeconomic principles to gain an understanding of how firms and individuals make decisions and also to make your own conclusions about actions we can
take to improve those decisions.

Now, imagine that you are a consultant to the firm of your choice. The firm has hired you to advise it on how it can ensure its future success as a company in its
current market. To do this, you will write a 7–9-page research paper analyzing market and business data to explain how the core microeconomic principles
impact the sustainability of the firm and what actions it can take to ensure success.

The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Two, Four, and Five. The final submission will occur in Module Seven.

In this assignment, you will demonstrate your mastery of the following course outcomes:

 ECO-201-01: Apply microeconomic models to real-world situations for informing effective business decisions

 ECO-201-02: Analyze business and market data using microeconomic tools for their impact on business sustainability

 ECO-201-03: Evaluate the structure of various markets for informing effective decision-making strategies

 ECO-201-04: Assess the behavior and decisions of individuals and firms for their relation to the microeconomic framework

Prompt
You will work with your instructor to choose a firm for which you can find reliable data and information, both at the firm level and the industry level. The firm you
select must be a publicly traded company, must operate in the U.S. market, and must currently be in business. You will need instructor approval before continuing
on with your research paper in order to ensure you have met the necessary requirements. Publicly traded companies file reports with a great deal of data that
you will find useful for your analysis. Once you have selected a firm for your case study, you will gather information and data relevant to the firm and its industry
and use the core microeconomic principles you have learned in class to analyze the information and make a recommendation for your firm. You will compose a
7–9-page research paper in which you will analyze the market and business data to explain how the core microeconomic principles impact the sustainability of
the firm, and your recommendation will suggest the actions the firm can take to ensure success.

Specifically the following critical elements must be addressed:

I. Introduction
Work with your instructor to choose a firm that matches the following criteria: a publicly traded company operating in the U.S. market that is currently in
business.

a) Outline the purpose of this paper and how it will inform your conclusion.
b) Summarize the history of the firm, and provide an overview for what the firm does and what goods/services it sells.

II. Explore the supply and demand conditions for your firm’s product.
a) Evaluate trends in demand over time, and explain their impact on the industry and the firm. You should consider including annual sales figures

for the product your firm sells.
b) Analyze information and data related to the demand and supply for your firm’s product(s) to support your recommendation for the firm’s

actions. Remember to include a graphical representation of the data and information used in your analysis.
III. Examine the price elasticity of demand for the product(s) your firm sells.

a) Analyze the available data and information, such as pricing and the availability of substitutes, and justify how you determine the price elasticity
of demand for your firm’s product.

b) Explain the factors that affect consumer responsiveness to price changes for this product, using the concept of price elasticity of demand as your
guide.

c) Assess how the price elasticity of demand impacts the firm’s pricing decisions and revenue growth.
IV. Examine the costs of production for your firm.

a) Analyze the various costs a firm faces, their trends over time, and how they have impacted your firm’s profitability.
b) Apply the concepts of variable and fixed costs to your firm for informing its output decisions. For instance, analyze how different kinds of costs

(labor, research and development, raw materials) affect the firm’s level of output.
V. Explore the overall market for your firm.

a) Discuss the market share of the firm and its top competitors by providing details on current percentages for each firm and describing the trend
over time. You might consider presenting the data graphically.

b) Analyze the barriers to entry in this market to illustrate the potential for new competition and its impact on your firm’s future in the market.
c) Describe the market structure for this firm, and analyze how this affects the firm’s ability to influence the market.

VI. Recommendation
a) Develop a recommendation for how the firm can manage its future production by synthesizing the data presented.
b) Suggest how the firm’s position within the market and among its competitors will allow it to take your recommended action.
c) Describe how the firm can sustain its success going forward by evaluating the findings from demand trends and price elasticity.

Milestones
Milestone One: Introduction
In Module Two, you will submit a draft of the introduction (Section I) of your research paper, including all critical elements of Section I as listed above. In one to
two pages, you will detail the purpose of the paper, summarize the history of the firm, and provide an overview of the firm. This milestone is graded with the
Milestone One Rubric.

Milestone Two: Supply and Demand Conditions and Price Elasticity of Demand
In Module Four, you will submit a draft of the supply and demand conditions (Section II) and price elasticity of demand (Section III) of your research paper,
including all critical elements as listed above for each of those sections. Each of these sections should be one to two pages in length and should incorporate
relevant data and supporting evidence. This milestone is graded with the Milestone Two Rubric.

Milestone Three: Costs of Production, Overall Market, and Recommendation
In Module Five, you will submit a draft of the costs of production (Section IV), overall market (Section V), and recommendation (Section VI) of your research
paper, including all critical elements as listed above for each of those sections. Each of these sections should be one to two pages in length and should
incorporate relevant data and supporting evidence. This milestone is graded with the Milestone Three Rubric.

Final Submission: Research Paper
In Module Seven, you will submit your research paper. It should be a complete, polished artifact containing all of the critical elements of the final project. It
should reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Rubric.

Deliverables

Milestone Deliverables Module Due Grading

1 Introduction Two Graded separately; Milestone One Rubric

2 Supply and Demand Conditions and
Price Elasticity of Demand

Four Graded separately; Milestone Two Rubric

3 Costs of Production, Overall Market,
and Recommendation

Five Graded separately; Milestone Three Rubric

Final Submission: Research Paper Seven Graded separately; Final Project Rubric

Final Project Rubric
Guidelines for Submission: Your research paper must be 7 to 9 pages in length (plus a cover page and references) and must be written in APA format. Use double
spacing, 12-point Times New Roman font, and one-inch margins. Include at least five references cited in APA format.

Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value

Introduction:
Purpose

Meets “Proficient” criteria and
uses industry-specific language to
establish expertise

Outlines the purpose of the
paper and how it will inform the
conclusion

Outlines the purpose of the
paper, but does not explain how
it will inform the conclusion

Does not outline the purpose of
the paper

6.5

Introduction: History
and Overview

Meets “Proficient” criteria, and
choice of company is well suited
to the analysis

Comprehensively summarizes the
history of the firm and provides
an overview for what the firm
does and what goods/services it
sells

Summarizes the history of the
firm and provides an overview for
what the firm does and what
goods/services it sells, but
summary is not comprehensive
or overview lacks details

Does not summarize the history
of the firm or provide an
overview

6.5

Conditions: Impact

Meets “Proficient” criteria and
explains in detail reasons for the
trend

Effectively evaluates trends in
demand over time and explains
their impact on the industry and
the firm

Evaluates trends in demand over
time, but evaluation is ineffective
or does not explain their impact
on the industry and firm

Does not evaluate trends in
demand over time

6.5

Conditions: Firm’s
Actions

Meets “Proficient” criteria and is
well qualified with concrete
examples

Analyzes information and data
related to the demand and
supply for the firm’s product(s) to
support recommendation for the
firm’s actions and includes
graphical representation of data
and information

Analyzes information and data
related to the demand and
supply for the firm’s product(s),
but information and data do not
support recommendation for the
firm’s actions or do not include
graphical representation of data
and information

Does not analyze information and
data related to the demand and
supply for the firm’s product(s)

6.5

Price Elasticity of
Demand: Analyze

Meets “Proficient” criteria and
uses research to illustrate claims

Analyzes the available data and
information and justifies how the
price elasticity of demand for the
firm’s product was determined

Analyzes the available data and
information, but does not justify
how the price of elasticity of
demand for the firm’s product
was determined

Does not analyze the available
data and information to
determine the price elasticity of
demand

6.5

Price Elasticity of
Demand: Consumer

Responsiveness

Meets “Proficient” criteria and
reviews all factors of elasticity

Explains the factors that affect
consumer responsiveness to
price changes for the product
using the concept of price
elasticity of demand as a guide

Explains the factors that affect
consumer responsiveness to
price changes for the product,
but does not use the concept of
price elasticity of demand as a
guide

Does not explain the factors that
affect consumer responsiveness
to price changes for the product

6.5

Price Elasticity of
Demand: Pricing

Decisions

Meets “Proficient” criteria and
uses research to illustrate claims

Accurately assesses how the
price elasticity of demand
impacts the firm’s pricing
decisions and revenue growth

Assesses how the price elasticity
of demand impacts the firm’s
pricing decisions and revenue
growth, but assessment is
inaccurate

Does not assess how the price
elasticity of demand impacts the
firm’s pricing decisions and
revenue growth

6.5

Costs of Production:
Profitability

Meets “Proficient” criteria and
provides concrete examples to
substantiate claims

Analyzes the various costs a firm
faces, their trends over time, and
how they have impacted the
firm’s profitability

Analyzes the various costs a firm
faces and their trends over time,
but does not discuss how they
have impacted the firm’s
profitability

Does not analyze the various
costs a firm faces, their trends
over time, or how they have
impacted the firm’s profitability

6.5

Costs of Production:
Output Decisions

Meets “Proficient” criteria and
provides insight into how the
firm can manage those costs

Accurately applies the concepts
of variable and fixed costs to the
firm for informing its output
decisions

Applies the concepts of variable
and fixed costs to the firm for
informing its output decisions,
but applies concepts inaccurately

Does not apply the concepts of
variable and fixed costs to the
firm for informing its output
decisions

6.5

Overall Market:
Market Share

Meets “Proficient” criteria and
presents the data graphically and
over time

Discusses the market share of the
firm and its top competitors by
providing details on current
percentages for each firm and
describing the trend over time

Discusses the market share of the
firm and its top competitors, but
does not provide details on
current percentages for each firm
or does not describe the trend
over time

Does not discuss the market
share of the firm and its top
competitors

6.5

Overall Market:
Barriers to Entry

Meets “Proficient” criteria and
provides specific examples of
successful and/or failed entrants
into the market

Analyzes the barriers to entry in
this market to illustrate the
potential for new competition
and its impact on the firm’s
future in the market

Analyzes the barriers to entry in
this market, but does not
illustrate the potential for new
competition or its impact on the
firm’s future in the market

Does not analyze the barriers to
entry in this market

6.5

Overall Market:
Market Structure

Meets “Proficient” criteria and
provides specific examples to
demonstrate the market
structure and firm’s influence

Describes the market structure
for this firm and accurately
analyzes how this affects the
firm’s ability to influence the
market

Describes the market structure
for this firm, but does not analyze
how this affects the firm’s ability
to influence the market or
analysis is inaccurate

Does not describe the market
structure for this firm

6.5

Recommendation:
Future Production

Meets “Proficient” criteria and
relates recommendation to the
economic principles presented in
the paper

Effectively develops a
recommendation for how the
firm can manage its future
production by synthesizing the
data presented

Develops a recommendation for
how the firm can manage its
future production, but
recommendation is not effective
or is not based on a synthesis of
the data presented

Does not develop a
recommendation

6.5

Recommendation:
Recommended

Action

Meets “Proficient” criteria and
provides advice for how to
strengthen its position in the
market

Suggests how the firm’s position
within the market and among its
competitors will allow it to take
the recommended action

Suggests how the firm’s position
within the market and among its
competitors will allow it to take
the recommended action, but
suggestions are not appropriate

Does not suggest how the firm’s
position within the market and
among its competitors will allow
it to take the recommended
action

6.5

Recommendation:
Sustain its Success

Meets “Proficient” criteria and
provides specific ideas for how
the firm can sustain its success

Describes how the firm can
sustain its success going forward
by evaluating the findings from
demand trends and price
elasticity

Describes how the firm can
sustain its success going forward,
but does not evaluate the
findings from demand trends and
price elasticity in the discussion

Does not describe how the firm
can sustain its success going
forward

6.5

Articulation of
Response

Submission is free of errors
related to citations, grammar,
spelling, syntax, and organization
and is presented in a professional
and easy-to-read format

Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization

Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact readability
and articulation of main ideas

Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas

2.5

Earned Total 100%