ECO 201 Project Milestone 1.docx - ECO 201 Project Template Memo To My Business Partner From Zykeya Ford Date[Insert date Re Microeconomics Simulations

ECO 201 Project Milestone 1.docx - ECO 201 Project Template...

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ECO 201 Project Template Memo To: My Business Partner From: Zykeya Ford Date: [Insert date] Re: Microeconomics Simulations Introduction This memorandum report identifies and explains key microeconomic principles using a set of simulation games. The outcome of these games illustrate how microeconomic principles can be applied within real-life situations to help us make better business decisions. This report is a summary of the simulations I played and their results, which include the key takeaways and their significance, for your review and reference. It is divided into the following sections: 1. Comparative Advantage 2. Competitive Markets and Externalities 3. Production, Entry, and Exit 4. Market Structures (including the Price Discrimination and Cournot simulations) 5. Conclusions 6. References
Comparative Advantage Figure 1.1
Figure 1.2 This simulation demonstrates how individuals evaluate opportunity costs to make business decisions by presenting a simulation in which someone must find a balance between the production of hamburgers and french fries. This simulation demonstrates how time spent producing hamburgers takes away from time available for producing french fries or vice versa. The stimulation demonstrates the theory of comparative advantage “ introduces opportunity cost as a factor for analysis in choosing between different options for production,”(Hayes, 2020). The role of production-possibility frontier (PPF) in the decision-making process is useful in determining what production outcomes are efficient and inefficient for a business. A comparative advantage impacts a firm’s decision to engage in trade because “ comparative advantage is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners,” said Hayes (2020). The theory suggests that

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