ECON assignment 3

JWI 515: Managerial Economics Academic Submissions and Evaluation

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Assignment 3: Price Discrimination Memo (Weight: 15%) Due by Sunday, midnight of Week 7

Your Assignment

Your boss has just given you an important, high priority assignment. The company’s core business product has shown steadily shrinking profitability and you’ve been asked to address the problem by coming up with at least one new pricing technique. Prior to the meeting, your boss would like to see a brief Memo that outlines your proposal and explains the impact it will have on units sold and profits.

Instructions

Develop a Memo of 2 to 3 pages for your boss. As a Memo is a succinct business communication, it is helpful to work through your ideas before writing the document. When you are ready, use the Sample Outline provided at the end of the Instructions to structure your assignment document.

1. Describe the company’s product or service, using relevant economic terminology. Questions to address include, but are not limited to:

• What is the product or service? What Utility or benefit does it provide to the consumer?

• What is your company’s history with this product or service?

• What does the competition in the market look like for this product or service?

• What actions has your company taken to remain competitive?

2. Provide at least two specific proposals for price discrimination:

• Which Price Discrimination technique(s) will you use?

• What is the current price? What will be the new price?

3. Explain how implementing your proposal is expected to impact consumer demand:

• How will your proposal impact sales in the first three months?

• How will your proposal impact sales within eighteen months?

• What would increased sales enable the company to do differently?

JWI 515: Managerial Economics Academic Submissions and Evaluation

© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. JWI 515 – Assignment 3 (1198) Page 2 of 5

Professional Formatting Requirements

Your assignment should follow these formatting requirements:

• Typed, double-spaced, professional font (size 10-12), include headings and subheadings, with one-inch margins on all sides

• In place of a Cover Page, provide the following heading at the top of Page One of your Memo: Ø TO: Insert Professor’s Name Ø FROM: Insert Your Name Ø DATE: Insert Date Submitted Ø RE: Managerial Economics 515 - Assignment 3 –Price Discrimination Memo

• Include a References page that enables the reader to locate original sources. Application and analysis of

course materials and resources are expected, and additional research is welcome

• The References page is not included in the required length

JWI 515: Managerial Economics Academic Submissions and Evaluation

© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. JWI 515 – Assignment 3 (1198) Page 3 of 5

Price Discrimination Memo - Sample Outline

Use the following Outline of sections to organize the body of your Memo. Use the underlined headings as section headings in your memo. Use the prompts in each section to make sure you include the required content.

TO: Your Instructor FROM: Your Name DATE: Submittal Date RE: Managerial Economics 515 – Assignment 3 – Price Discrimination Memo

Introduction

Describe the contents of the memo

Product or Service

Briefly describe your product or service. (Address the following)

What utility or benefit does it provide to consumers?

Has your company offered this product or service in the past?

Which competitors offer the same or similar products or services in the market?

How has you company tried to stay competitive in the past?

Price Discrimination Proposals

Briefly describe one price discrimination technique that you will use. (Address the following)

What is the current price? What will the new price be?

How will this technique generate more profits?

Briefly describe a second price discrimination technique that you will use. (Address the following)

Answer the same questions as above for this technique

Impacts on Consumer Demand

Explain and quantify how your proposal will impact sales within the first three months

Explain and quantify how your proposal will impact sales within eighteen months

What could the company do differently, as a result of the increased sales?

Conclusion

References

JWI 515: Managerial Economics Academic Submissions and Evaluation

© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. JWI 515 – Assignment 3 (1198) Page 4 of 5

RUBRIC: Assignment 3: Price Discrimination Memo

CRITERIA

Unsatisfactory

Low Pass

Pass

High Pass

Honors

1. Describe the product or service and its history, using appropriate economic terminology.

Weight: 25%

Product or service is not described using appropriate economic terminology, and/or the product or service history and the competition are not described.

Product or service is partially described using appropriate economic terminology. The product or service history and the competition are also partially described.

Product or service is sufficiently described using appropriate economic terminology. The product or service history and the competition are also sufficiently described.

Product or service is thoroughly described using appropriate economic terminology. The product or service history and the competition are also thoroughly described.

Product or service is exemplarily described using appropriate economic terminology. The product or service history and the competition are also exemplarily described.

2. Provide at least two specific proposals for price discrimination and explain how the technique will generate more profits.

Weight: 30%

Specific proposals for price discrimination are not provided, and/or the student has not described how the proposal will generate more profits.

One specific proposal for price discrimination is provided with partial detail, and/or the student has partially described how the proposal will generate more profits.

One specific proposal for price discrimination is provided with sufficient detail and the student has sufficiently described how the proposal will generate more profits. .

Two or more specific proposals for price discrimination are provided with thorough detail and the student has thoroughly described how the proposal will generate more profits. .

Two or more specific proposals for price discrimination are provided with exemplary detail and the student has exemplarily described how the proposal will generate more profits. .

3. Explain how implementing your proposal is expected to impact consumer demand.

Weight: 25%

Proposal’s impact on consumer demand is not explained, including sales for the first three months and within twelve months. The student has not explained what increased sales would enable the company to do differently.

Proposal’s impact on consumer demand is partially explained, including sales for the first three months and within twelve months. The student has partially explained what increased sales would enable the company to do differently.

Proposal’s impact on consumer demand is sufficiently explained, including sales for the first three months and within twelve months. The student has sufficiently explained what increased sales would enable the company to do differently.

Proposal’s impact on consumer demand is thoroughly explained, including sales for the first three months and within twelve months. The student has thoroughly explained what increased sales would enable the company to do differently.

Proposal’s impact on consumer demand is exemplarily explained, including sales for the first three months and within twelve months. The student has exemplarily explained what increased sales would enable the company to do differently.

JWI 515: Managerial Economics Academic Submissions and Evaluation

© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. JWI 515 – Assignment 3 (1198) Page 5 of 5

CRITERIA

Unsatisfactory

Low Pass

Pass

High Pass

Honors

4. Student writes a good Conclusion; makes good use of Sources (References)

Weight: 10%

Poorly written or no Conclusion; minimal or no Sources are used.

The Conclusion is partially adequate; some appropriate Sources are used in a few parts of the paper.

The Conclusion is satisfactorily well written; multiple Sources are used in the paper.

The Conclusion is very well written; Sources are numerous and used effectively in the paper.

The Conclusion is excellently written; Sources are numerous and used in an exemplary fashion throughout the paper.

5. Clarity, logic, writing mechanics, and formatting.

Weight: 10%

Multiple mechanical errors; much of the text is difficult to understand or the text does not flow; fails to follow formatting instructions.

Several mechanical errors make parts of the text difficult for the reader to understand; the text does not flow; the discussion fails to justify conclusions and assertions.

More than a few mechanical errors; text flows but lacks conciseness or clarity; assertions and conclusions are generally justified and explained.

Few mechanical errors; text flows and concisely and clearly expresses the student’s position in a manner that rationally and logically develops the topics.

Few to no mechanical errors; text flows and concisely, clearly, and exemplarily expresses the student’s position in a manner that rationally and logically develops the topics.