ECON 545(DEVRY) help A Clearer path to student success/uophelp.com ECON 545(DEVRY) help A Clearer path to student suc | Page 30

analysis of the kind of market structure in which your
firm or labor service will be sold.
b.
(20 points) Price Elasticity of Supply you have based
on the Cost of Production changes as output changes,
including actual calculation of it using the midpoint
formula. If you can’t find data, then determine the Price
Elasticity from the Characteristics and make up numbers to
use. Be sure to identify this if you use this approach. This
will help you in deciding the slope of your Supply curve.
c.
(10 points) Graph your Supply situation using the
numbers from your earlier Cost of Production analysis.
3.
Recommendations—(40 points) what are your
recommendations explained by your analysis?
4.
Paper presentation—(10 points) good format, citations,
lack of spelling errors, etc.
Situation A
Jenny, your niece, is a smart high-school student who wants to make
intelligent choices for her future. Hearing of your course in business
economics, she has e-mailed you asking for advice on whether to
become a doctor and on the best location to practice it. She recognizes
the high costs of tuition and the years of study involved in becoming a
doctor. She wants to evaluate if that career choice is an optimal decision
for her, so she has asked you for advice.
Having read the piece “Fewer Physicians Move, a Sign of Career
Caution” on page 20 of the textbook, you recognize the significance of
such a career decision for Jenny. You decide to educate yourself about
the market for physicians in terms of supply and demand, elasticity,
costs of production, pricing, and economic or normal profit or loss. You
want to provide Jenny with the most informed advice possible.