What key economic concepts underlie the use of discount coupons by businesses? How critical is the underlying market structure in the choice of this strategy for business revenue growth?

Student                                                                                             

Course         ECO561                                                                          

Date                                                                                                         

Assignment:  Week3 Concept Assessment paper

Content

Points  - 1

Comments:

The goal of the exercise is to emphasize the importance all the key concepts we have covered so far in business decision analysis.  The key considerations for the analysis include –

·         Underlying market structure – monopoly, oligopoly etc.For instance a monopoly may ot need to use a coupon

·         Movement along the demand curve and changing elasticity along the demand curve

·         Impact of price elasticity of demand on quantity demanded and hence effectiveness of the coupon

·         Possibility of price discrimination by attracting more price conscious consumers

·         The importance of the underlying cost concepts MR, MC and their impact in limiting the value of the coupon

·         Opportunity cost

·         The importance of income and price effect

·         Substitution effect

·         Nonpricng effect - impact on brand building could also be critical

·         Uses graphs as needed to demonstrate impacts

1.        Discusses market structure

2.        Identifies difference between movement along and shift of demand curve

3.        Discusses demand elasticity and its impact on quantity demanded and effectiveness of the coupon

4.        Discusses possibility of price discrimination

5.        Discusses importance of the underlying cost concepts MR, MC and their impact in limiting the value of the coupon

6.        Opportunity cost

7.        Income and price effect

8.        Substitution effect

9.        Nonpricng effect 

10.     Uses appropriate concept  graphs

Organization

·         The paper is no more than 1 page in length.

·         Paragraph transitions are present, logical, and maintain the flow throughout the paper.

·         The tone is appropriate to the content and assignment.

·         Sentences are complete, clear, and concise.

·          

Mechanics

·         Formatting or layout and graphics pleasing to the eye, including font, colors, and spacing.

·         Rules of grammar, usage, and punctuation are followed, and spelling is correct.

·         The document uses proper business memo format and follows APA format for the reference page.

Overall Comments

Total Earned

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