Managerial Economics: Demand, Supply, and Perfect Competition

Managerial Economics

Executive summary
Managerial accounting includes several accounting aspects aimed at enhancing the
consistency of knowledge given to management about indicators of company activities.
Management accountant provide statistics related to the profitability and financial income
produced by the business for products and services. Standard costing is a wide subset of
management accounting which focuses primarily on measuring the overall manufacturing
business costs by evaluating the operating expenses within each production phase, and also fixed
costs. This helps corporations to recognise and decrease wasteful expenses and maximize
revenues. This report, summaries demand curve, the supply curve, the equilibrium price, and the
equilibrium quantity, Perfect Competition characteristic, and many more concept of economic
which are beneficial in making decision.

Contents
Executive summary..........................................................................................................................2
BODY OF PROJECT......................................................................................................................4
SECTION “A”.................................................................................................................................4
1) Effect on the demand curve, the supply curve, the equilibrium price, and the equilibrium
quantity...................................................................................................................................4
2) Features of Perfect Competition with examples................................................................8
3) Graph to show the point the firm should stop hiring worker in a perfect competitive market
form........................................................................................................................................9
4. Demand is elasticity..........................................................................................................10
5. Four tools available for government interventions to deal with the market failures........11
SECTION “B”...............................................................................................................................15
A. Supply schedule and the various factors affecting the supply in the market...................15
2. Telecommunications Regulatory Authority (TRA)..........................................................16
Major characteristics of the emerging market form in the telecom industry:......................17
b. Pricing policies that expected to find in this industry:.....................................................17
c. Profit maximization strategy of this market form with the help of a suitable graph:.......18
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

BODY OF PROJECT
SECTION “A”
1) Effect on the demand curve, the supply curve, the equilibrium price, and the equilibrium
quantity.
A) Market for newspapers
Case1 : The salaries of journalists go up
The reporters are really the key material for the output of the publications in the
illustration described as well as any increases in their wages influence the amount supplied. The
wages limits the supply of commodities at the same amount. The equilibrium price from Sa to Sb
would be moved leftward. This would lead to some other outcome that reduced the amount of
the balance and raises the cost of the optimum (Fernandez, 2018).
Case 2: There is a big news event in your town, which is reported in the newspapers.
Consumers can afford more newspapers at any provided price to learn about the major
news occurrence in community. This would switch to the right, impacting the consumer surplus

and triggering a transition towards Da to Db. There may be an improvement across both the
quantity and price of the balance, and it would also change from Ea to Eb.
B) Market for St. Louis Rams
Case 1: The Rams win the Super Bowl competition.
It can be stated that yes, of necessity, following their performance in winning a title,
individuals will purchase the St. Louis Rams T-shirt so that the market will rise at the given
price. This would swing to the right, impacting the demand graph and making the Da to Db
transition. The equilibrium point would also rise but it will also move towards Ea to Eb, as seen
below.
Case 2: The price of cotton increases.
The expense here is the fabric of the t-shirts, and therefore any increases in prices will contribute
to a difference in the amount supplied. In this situation, the rise in the cost of cotton would lead
to a decline in the production of t-shirts and a drop in the amount of fabric delivered. A back to
the left change of the quantity supplied towards Sa to Sb is seen in the illustration above
(CHULKOV and NIZOVTSEV, 2012). It would therefore result in a decrease in the sum of the

approximation as well as a rising price of the equilibrium. The adjustments from E a to Eb are
described above.
C) Market for bagels
Case 1: People realize how fattening bagels are.
From the above graph it can be clearly discussed that these day, individuals are getting
more safe and mindful of what could react to a decline in demand. The subsequent a shift on the
left hand side will modify the business cycle towards D1 to D2 as well as this will also impact
the price level to decrease forever and transition between E1 to E2.
Case 2: People have less time to make themselves a cooked breakfast
The above graph shows the well and systematic approach which further describe that
if customers have little time to plan for nutritious lunch and begin to select substitutes, bagles
would have been the most successful choice that will raise the market for that too. Mostly on