Profit Maximizing Quantity and Price Presentation

Deliverable 6 - Profit Maximizing Quantity and Price Presentation Competency Understand economic terminology and economic definitions pertaining to decisions made by managers.

Course Scenario Oil Company X is a large oil refinery which has been expanding and taking on new investment projects. Recently, they have considered building a pipeline that stretches across the United States, from Canada to New Orleans. As an alternate investment, they are considering increasing production at existing facilities.

In order to compare these investment opportunities, the head of the Cost Analysis Department has tasked you with finding the profit maximizing quantity and price if production continues at existing facilities. You will then present this to the head of the department in a meeting, along with supporting documentation such as cost curves, data tables, and equations.

Instructions As a Cost Analyst at your firm, you are being asked to evaluate the profit maximizing quantity and price for your product to submit to your manager. Assume that your firm is a monopoly supplier of oil in your region, due to extensive trade restrictions.

Another team member in the Cost Analysis Department has compiled the necessary data in the linked spreadsheet. You will have to complete the missing columns for ATC, AVC, and MC. If the company is incurring a profit, include the amount of the profit earned when quantity and price are maximized. If your company is incurring a loss, prove whether it should shut down or continue operating at a loss. Use graphs and equations to support your argument.

You will create a short screen recording with narration arguing your case to your manager. Create a PowerPoint presentation to support your

recommendation which can serve as the visuals for your recorded screen capture.

There are many free screen recording software/Webware options available (such as Screencast-O-Matic) to use in presenting your PowerPoint. Make sure that both your voiced narration and the PowerPoint slides are captured during your screen recording.

Be sure to include a cohesive introduction and conclusion of your findings. Your body slides should include any relevant curves created in Excel from the data spreadsheet.

After recording, paste a link to the recording on the last slide of the PowerPoint presentation. Attach the PowerPoint presentation as well as the Excel spreadsheet showing how you created the curves and obtained the profit maximizing quantity and price, as well as the corresponding profit or loss.

Format your PowerPoint to include a title page, introduction, body slides, conclusion, and references. Remember to cite your sources using correct APA format, and also use correct grammar, spelling, and formatting.

Grading Rubric

F F C B A

0 1 2 3 4 Not

Submitted No Pass Competence Proficiency Mastery

Not Submitted

Introduction and/or conclusion did not summarize the profit-maximizing recommendation.

Introduction and conclusion summarized the profit-maximizing recommendation.

Introduction and conclusion summarized the profit-maximizing recommendation, using clear supporting evidence.

Introduction and conclusion summarized the profit-maximizing recommendation, using clear supporting evidence and a well- defined synopsis of the report goals.

Not Submitted

One or more of average cost, marginal revenue, and average total costs curves are not

Average cost, marginal revenue, and average total costs curves are all included, but with minor errors.

Average cost, marginal revenue, and average total costs curves are all included, with no errors.

Average cost, marginal revenue, and average total costs curves are all included, with no

included, or include major errors.

errors and justification for inclusion.

Not Submitted

Equilibrium price and quantity included, but one or both are incorrect.

Equilibrium price and equilibrium quantity are both correct.

Equilibrium price and equilibrium quantity are both correct, and a profit- maximizing equation included.

Equilibrium price and equilibrium quantity are both correct, and a profit-maximizing equation is included and clearly explained using corresponding graphs.

Not Submitted

Profit/loss included, but are incorrect.

Profit/loss are correct, but the shut-down decision is incorrect.

Profit/loss and shut- down decisions are correct and clearly presented.

Profit/loss and shut- down decisions are correct, clearly presented, and accurately depicted graphically.