Principles of Microeconomics

ECO204  principles of Microeconomics Final paper
In an eight-to ten-page paper, describe each market structure discussed in the course (perfect competition, monopolistic competition, oligopoly, monopoly), provide a real-life example of each market, and respond to the following for each market structure:
Indicate how high entry barriers into a market will influence :Long-run profitability of the firmsCost efficiency of the firms in the industryLikelihood that some inefficient firms will surviveIncentive of entrepreneurs to develop substitutes for the product supplied by the firmsAre competitive pressures present in markets with high barriers to entry? Explain.Describe which market structure you would prefer for selling products. Explain why and support your answer with the characteristics of that market.Describe which market structure you would prefer for buying products. Explain why and support your answer with the characteristics of that market.How does each market structure respond to price changes of the products that they sell? Explain whether each market structure will be selling elastic or inelastic products,  and how this will affect the market price charged.How does the role of the government affect each market structure’s  ability to price their products?How does international trade affect each market structure?
Your paper will need to include a title page, reference page, and in-text citations that are formatted in accordance with APA style  as outlined in the Ashford Writing Center . Also, your content should be eight to ten  pages, which does not include your reference or title page. You will need to include five  academic sources from the Ashford University  Library  to include in your paper as part of your research to support your work and analysis.Writing the Final Paper
The Final Paper:
Must be eight to ten double-spaced pages in length and formatted according to APA style as outlined in the approved APA style guide.Must include a cover page that includes:Title of paperStudent’s nameCourse name and numberInstructor’s nameDate submittedMust include an introductory paragraph with a succinct thesis statement.Must aIDress the topic of the paper with critical thought.Must conclude with a restatement of the thesis and a conclusion paragraph.Must use at least five scholarly resources from the Ashford University Library.Must use APA style as outlined in the approved APA style guide to document all sources.Must include, on the final page, a Reference Page that is completed according to APA style as outlined in the approved APA style guide.
Data and Calculations in word file
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash.
Since you are well trained in budgeting, you have decided to prepare comprehensive budgets for the upcoming second quarter in order to show management the benefits that can be gained from an integrated budgeting program. To this end, you have worked with accounting and other areas to gather the information assembled below.
The company sells many styles of earrings, but all are sold for the same price—$10 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings):
The concentration of sales before and during May is due to Mother’s Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month.
Suppliers are paid $4 for a pair of earrings. One-half of a month’s purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 20% of a month’s sales are collected in the month of sale. An aIDitional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible.
Monthly operating expenses for the company are given below:
Insurance is paid on an annual basis, in November of each year.
The company plans to purchase $16,000 in new equipment during May and $40,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $15,000 each quarter, payable in the first month of the following quarter.
A listing of the company’s ledger accounts as of March 31 is given below:
The company maintains a minimum cash balance of $50,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.
The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $50,000 in cash.
Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets:
·       1.
o   a. A sales budget, by month and in total.
o   b. A schedule of expected cash collections from sales, by month and in total.
o   c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.
o   d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.
·       2. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000.
·       3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach.
·       4. A budgeted balance sheet as of June 30.