Long-Term Investment Decisions

Assignment 3: Long-Term Investment Decisions
Due Week 9 and worth 300 points

Assume that the low-calorie frozen, microwavable food company from Assignments 1 and 2 wants to expand and has to make some long-term capital budgeting decisions. The company is currently facing increases in the costs of major ingredients.

Use the Internet and Strayer databases to research government policies and regulation.

Write a six to eight (6-8) page paper in which you:

  1. Outline a plan that managers in the low-calorie, frozen microwaveable food company could follow in anticipation of raising prices when selecting pricing strategies for making their products response to a change in price less elastic. Provide a rationale for your response.
  2. Examine the major effects that government policies have on production and employment. Predict the potential effects that government policies could have on your company.
  3. Determine whether or not government regulation to ensure fairness in the low-calorie, frozen microwavable food industry is needed. Cite the major reasons for government involvement in a market economy. Provide two (2) examples of government involvement in a similar market economy to support your response.
  4. Examine the major complexities that would arise under expansion via capital projects. Propose key actions that the company could take in order to prevent or address these complexities.
  5. Suggest the substantive manner in which the company could create a convergence between the interests of stockholders and managers. Indicate the most likely impact to profitability of such a convergence. Provide two (2) examples of instances that support your response.
  6. Use at least five (5) quality academic resources in this assignment.Note:Wikipedia does not qualify as an academic resource.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Propose how differences in demand and elasticity lead managers to develop various pricing strategies.
  • Analyze the economic impact of contracting, governance and organizational form within organizations.
  • Use technology and information resources to research issues in managerial economics and globalization.
  • Write clearly and concisely about managerial economics and globalization using proper writing mechanics.

Identify an economic issue that is important in your community

This activity has three parts. Make sure you read on for details to complete them all!

Part One: Choose
Identify an economic issue that is important in your community. You may choose to talk to your instructors and members of your family. View a list of economic policy topics you may choose to consider.

Part Two: Research
Learn more about how this issue affects your community. You may choose to contact a local leader such as a member of your city or county council or representative from an a related citizen interest group. Consult an online phone book or community website for contact information. Use the Research Chart to document your data, take notes, and track your sources of information.

Part Three: Construct
Construct a circular-flow diagram for a business or industry in your community. Diagram the flow of goods, services, and money from your chosen industry to the various sectors of the local and world economy. For example, a factory in your community creates jobs and products. The income to the households creates spending in the economy as people consume products, invest, and pay taxes to the government.

Use the Research Chart to document how this business or industry’s activities affect the various sectors of the local and world economy.

Submit both the diagram and the chart in assessment 6.01.