To complete the Article Research Paper due in Week 4, please select a topic from the list
provided below or from the chapter readings.
The benefits of a free enterprise system.
Capitalism and free trade are crucial foundations for freedom from poverty.
Voluntary transactions create wealth by moving assets from lower- to higher-valued uses.
Anything that impedes the movement of assets to higher-valued uses, like taxes,
subsidies, or price controls, destroys wealth.
Each inefficiency implies a money-making opportunity.
The art of business consists of finding an asset in lower-valued use and devising ways to
profitably move it to higher-valued one.
A company can be thought of as a series of transactions.
Costs are associated with decisions.
These are the relevant costs and relevant benefits of a decision.
Accounting profit does not necessarily correspond to economic profit.
A good incentive compensation scheme links pay to performance measures that reflect
All investment decisions involve a trade-off between current sacrifice and future gain.
Companies, like individuals, have different discount rates, determined by their cost of
Net Present Value (NPV)
Price elasticity of demand
Law of diminishing marginal returns
Increasing returns to scale
Economies of scale
Diseconomies of scale.
Compensating wage differentials
The industrial organization economics (IO) perspective assumes that the industry
structure is the most important determinant of long-run profitability.
The Five Forces model is a framework for analyzing the attractiveness of an industry.
According to the resource-based view (RBV), individual firms may exhibit sustained
performance advantages because of their superior resources.
To stay one step ahead of the forces of competition, a firm can adopt one of three basic
strategies: cost reduction, product differentiation, or reduction in the intensity of
Foreign exchange market
Devaluations help domestic producers and foreign consumers, but hurt domestic
consumers and foreign producers.
Psychological biases suggest being aware of price expectations and “framing” price
changes as gains rather than as losses.
If a seller can identify two groups of consumers with different demand elasticities and
can prevent arbitrage between the groups, it can increase profit by charging a higher price
to the low-elasticity group.
Research Paper: This is a graduate course and students will be expected to research and write
papers summarizing in their own words what they have found on current topics from the weekly
readings. Research is a theoretical review of relevant literature and application of findings in the
literature to a topic related to a specific industry, field, or business problem.
The research must be conducted using peer-reviewed trade or academic journals. While
Blogs, Wikipedia, encyclopedias, course textbooks, popular magazines, newspaper articles,
online websites, etc. are helpful for providing background information, these resources
are NOT suitable resources for this research assignment.
Please Note: The UC Library staff are very helpful with assisting students in using the UC
Online Library journal database. Please contact them if you have issues. In addition, the
instructor has provided additional resources, including a research tutorial, in the “Course
Resources” folder in the “Content” area of the course.
Assignment status: Solved by our experts