Your Perfect Assignment is Just a Click Away

We Write Custom Academic Papers

100% Original, Plagiarism Free, Customized to your instructions!

glass
pen
clip
papers
heaphones

ECON5315 TAMU Alcoa Details Plans To Split Into Two Companies

ECON5315 TAMU Alcoa Details Plans To Split Into Two Companies

ECON5315 TAMU Alcoa Details Plans To Split Into Two Companies
Question Description
Part 1. Based on the article “Alcoa Details Plans to Split Into Two Companies – WSJ” – i attacked in files below.. answer 3 questions below: (each atleast 150words)
i. Which market is Alcoa exiting? Why? [That is: What issues are leading to this decision?]
ii. Describe any barriers to exit you would expect Alcoa to face.
iii. Will this exit be likely to hurt company profits in the short run? In the long run?
Part2: Make 2 replies for 2 discussions below (each one atleast 150words).. please provide charts, pictures, sources if necessary
Jay:
Question 1: What is happening to the demand for US-produced cheese? Why?
The demand for US produced cheese is on the rise. According to the latest Livestock, Dairy, and Poultry Outlook, US cheese demand appears to be solid, up 1.4% from June 2017 to 2018 and up 6.2% since May (Mielke, 2018). According to Gee’s article, American’s eat an average of 36 pounds of cheese a year apiece (Gee, 2016). This is spurred by recent declines in the prices of US produced cheeses. As the prices for cheese continue to fall, cheesemakers are trying to soften the blow of declining prices by attempting to sell more. For example, retail prices for cheese were down 4.3% in April 2016. As the demand for milk declines the supply of cheese continues to rise creating a surplus. According to the Department of Agriculture, the US currently has 1.39 billion pounds of cheese in storage (Akhtar, 2018). Extra cheese means lower prices. This increase in supply and unchanging or rising demand will likely result in a lower equilibrium price and a higher equilibrium quantity.
Resources
Akhtar, A. (2018). America has a cheese problem that’s only going to get worse. Retrieved from http://money.com/money/5325694/cheese-excess-trump”¦
Gee, K. (2016). A cheese glut is overtaking America. Retrieved from https://portal.tamucc.edu/articles/1743833.5429/1″¦.
Mielke, L. (2018). U.S. cheese demand appears to be solid. Retrieved from https://www.farmersadvance.com/story/money/2018/08″¦
Nikko:
2. How would you argue that the producers of cheese (and meat and poultry) are perfectly competitive?
A perfect competitive environment is an industry with numerous firms producing similar or identical goods. These environments allow consumers to choose among different companies based primarily on price (Besanko, 2015). Besanko (2015) explains that the perfectly competitive demand curve is a horizontal line (elastic demand function) at the market price since all businesses charge the same price. A perfectly competitive market’s characteristics include many sellers, knowledgeable buyers, costless entry and exit in the market, and perfectly elastic demand curves. The markets of cheese, meats, and poultry are prime examples of perfectly competitive industries since customers can buy these foods at countless local grocery stores in their neighborhoods.
Additionally, shoppers are generally knowledgeable about the varieties of cheese, poultry, and meats for a given dinner cuisine. Considering newer farmers are entering these markets daily in a relatively straightforward manner, this is another feature that helps characterize these industries (cheese, poultry, and meat) as relatively perfectly competitive. In perfectly elastic markets, any change in price would utterly eradicate the demand for that product (Besanko, 2015). If the cost of poultry of one company in any one market soared while others remained constant that the firm will see a plummet of demand for its product leading to ultimate exiting of the market, this would be mirrored for cheese and meats. With so many brands, distributors, and farmers available, the average shopper will buy a generic, substitutes, or more affordable alternative proteins or cheeses. If the price of poultry skyrockets then shoppers can substitute their palate with other protein dishes (pork, beef, bison, fish, soy, etc.) and vice versa for meat. If one type of cheese’s price rises higher than customers can afford, people may buy other cheese.
Besanko, et al., Economics of Strategy, Wiley, 7th Edition, 2015, ISBN 978-1- 119-17477-6

“Place your order now for a similar assignment and have exceptional work written by our team of experts, guaranteeing you A results.”
Attachments
20190330145527alcoa_details_plans_to_split_into_two_companies___wsj (610 kB)

Order Solution Now

Our Service Charter

1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers is known for timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer to all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.

Phoenix Papers Inc.

Your one stop solution for all your online studies solutions. Hire some of the world's highly rated writers to handle your writing assignments. And guess what, you don't have to break the bank.

© 2021 Phoenix Papers Inc.