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Psy406 Assignment 2 Operations

MARKETING MANAGEMENT (MKT501)                       spring 2013

Important announcement

for Extension in the due date of Assignment # 2

Dear Students

This is to inform that due date for Assignment No. 2 has been extended to 19th June 2013 due to problems being faced in LMS. This assignment was opened at 13th June, 2013.

A 24 hours extra/grace period after the due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies; and above mentioned due date should always be treated as final to avoid any inconvenience.


To open the assignment file, you must have Adobe Acrobat Reader/ PDF Reader installed on your computer.

For acquiring the relevant knowledge, do not rely only on handouts but watch the course video lectures and read additional material available online or in any other mode.


Assignment 2& Operations DecisionEco 550T'e purpose o( t'is paper is to present t'e )o*+ca)orie micro*a!ea")e (oo,s- in support o( t'e company-s )ong run operations ,ecision p)ans. n t'e paper$  *i)) e/amining t'e resu)ts o( t'e ne* supp)y cur!e as it re()ects to t'e current market structure an, t'en take into account t'e e/pecte, c'anges to t'e se))ing en!ironment an, (actors t'at may 'a!e cause, t'e c'ange.  *i)) a)so e/amine c'ie( s'ort+run an, )ong+run pro,uction an, cost (unctions as app)ie, to t'is ne* cost ,ata to ,etermine i( t'ere are con,itions un,er *'ic' operations cou), "e ,iscontinue,. Gi!en t'e c'ange in t'e market structure t'ey *e "e a nee, to re!ie* t'e pricing structure so as to ma/imie pro(its. 1ina))y$  *i)) proposes t*o 23 course o( actions t'at t'e company s'ou), take to increase pro(ita"i)ity an, ma/imie s'are'o),er-s !a)ue.#. T'e e((ecti!eness o( t'e market structure t'e company is operating.E!ery company in a pure competiti!e market is a price taker4 t'e eui)i"rium price an, in,ustry output are is a ,irect resu)t o( ,eman, an, supp)y. T'e market (or )o*+ca)orie micro*a!a")e (oo,7 s'o*s 'o* ,eman, an, supp)y in t'e market (or )o* ca)orie (oo,s$ pro,uce, un,er con,itions o( per(ect competition$ ,etermine t'e tota) output an, price consumers are *i))ing to  pay. T'e eui)i"rium price is %08.65 cents4 t'e eui)i"rium uantity is 2%$995.:D ; 65$#00 +#00<:s ; +8=0=.>= ?8=.0=>=<.1irm operating in a pure competiti!e se))ing en!ironment 'as no ,irect say on *'at t'e (irm c'arges on its pro,uct$ 'o*e!er$ t'e (irm can contro) t'e uantity supp)y to t'e market. Accor,ing to S)ack @ Le*is$ success or (ai)ure ,epen,s in a pure competiti!e market )ies in 'o*a company contro)s pro,uction cost an, portrays its "ran, 200>3. n pick out t'e capacity o(

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