ECO 201 Milestone Three Guidelines and Rubric
The purpose of this milestone is for students to explore the various costs their firm faces and to describe their firm’s market. Using the concepts and tools
developed in Modules Four and Five, students will analyze the fixed and variable costs of their firm, how those costs have changed over time, and how those
changes have impacted their firm’s overall health and sustainability. In analyzing their firm’s market, students will detail the extent of their firm’s market power
and their firm’s ability to influence the market. Students will also describe major trends in the market, specifically concerning new products, technologies, and
new entrants. Students can further determine the future health of their firm to inform their final recommendations by examining their firm’s place within the
market.
Prompt: Submit a draft of the Costs of Production (Section IV), Overall Market (Section V), and Recommendation (Section VI) of your research paper, including
all critical elements listed below. You will review your firm’s financial reports and other relevant data sources to collect and analyze cost information for your firm
over the past five or so years. Using real data and the economic tools developed in Module Four, you will analyze your firm’s profitability and how costs impact its
growth. Additionally, you will find data on your firm’s competitors in order to detail your firm’s place within the market currently and over the past five or so
years. Lastly, you will develop a recommendation for how the firm can manage its future production.
Specifically the following critical elements must be addressed:
IV. Examine the costs of production for your firm.
a) Analyze the various costs a firm faces, their trends over time, and how they have impacted your firm’s profitability.
b) Apply the concepts of variable and fixed costs to your firm for informing its output decisions. For instance, analyze how different kinds of costs
(labor, research and development, raw materials) affect the firm’s level of output.
V. Explore the overall market for your firm.
a) Discuss the market share of the firm and its top competitors by providing details on current percentages for each firm and describing the trend
over time. You might consider presenting the data graphically.
b) Analyze the barriers to entry in this market to illustrate the potential for new competition and its impact on your firm’s future in the market.
c) Describe the market structure for this firm and analyze how this affects the firm’s ability to influence the market.
VI. Recommendation
a) Develop a recommendation for how the firm can manage its future production by synthesizing the data presented.
b) Suggest how the firm’s position within the market and among its competitors will allow it to take your recommended action.
c) Describe how the firm can sustain its success going forward by evaluating the findings from demand trends and price elasticity.
Rubric
Guidelines for Submission: Your paper must be submitted as a three- to six-page Microsoft Word document (each section should be one to two pages) with
double spacing, 12-point Times New Roman font, one-inch margins, and sources cited in APA format.
Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value
Costs of Production:
Profitability
Analyzes the various costs a firm
faces, their trends over time, and how
they have impacted the firm’s
profitability
Analyzes the various costs a firm
faces, and their trends over time, but
does not discuss how they have
impacted the firm’s profitability
Does not analyze the various costs a
firm faces, their trends over time, or
how they have impacted the firm’s
profitability
12
Costs of Production:
Output Decisions
Accurately applies the concepts of
variable and fixed costs to the firm for
informing its output decisions
Applies the concepts of variable and
fixed costs to the firm for informing
its output decisions, but applies
concepts inaccurately
Does not apply the concepts of
variable and fixed costs to the firm for
informing its output decisions
12
Overall Market: Market
Share
Discusses the market share of the
firm and its top competitors by
providing details on current
percentages for each firm and
describing the trend over time
Discusses the market share of the
firm and its top competitors, but does
not provide details on current
percentages for each firm or does not
describe the trend over time
Does not discuss the market share of
the firm and its top competitors
12
Overall Market: Barriers
to Entry
Analyzes the barriers to entry in this
market to illustrate the potential for
new competition and its impact on
the firm’s future in the market
Analyzes the barriers to entry in this
market, but does not illustrate the
potential for new competition or its
impact on the firm’s future in the
market
Does not analyze the barriers to entry
in this market
12
Overall Market: Market
Structure
Describes the market structure for
this firm and accurately analyzes how
this affects the firm’s ability to
influence the market
Describes the market structure for
this firm, but does not analyze how
this affects the firm’s ability to
influence the market or analysis is
inaccurate
Does not describe the market
structure for this firm
12
Recommendation: Future
Production
Effectively develops a
recommendation for how the firm
can manage its future production by
synthesizing the data presented
Develops a recommendation for how
the firm can manage its future
production, but recommendation is
not effective or is not based on a
synthesis of the data presented
Does not develop a recommendation 12
Recommendation:
Recommended Action
Suggests how the firm’s position
within the market and among its
competitors will allow it to take the
recommended action
Suggests how the firm’s position
within the market and among its
competitors will allow it to take the
recommended action, but
suggestions are not appropriate
Does not suggest how the firm’s
position within the market and
among its competitors will allow it to
take the recommended action
12
Recommendation:
Sustain its Success
Describes how the firm can sustain its
success going forward by evaluating
the findings from demand trends and
price elasticity
Describes how the firm can sustain its
success going forward, but does not
evaluate the findings from demand
trends and price elasticity in the
discussion
Does not describe how the firm can
sustain its success going forward
12
Articulation of Response Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors related
to citations, grammar, spelling,
syntax, or organization that negatively
impact readability and articulation of
main ideas
Submission has critical errors related
to citations, grammar, spelling,
syntax, or organization that prevent
understanding of ideas
4
Earned Total 100%
The purpose of this milestone is for students to explore the various costs their firm faces and to describe their firm’s market. Using the concepts and tools
developed in Modules Four and Five, students will analyze the fixed and variable costs of their firm, how those costs have changed over time, and how those
changes have impacted their firm’s overall health and sustainability. In analyzing their firm’s market, students will detail the extent of their firm’s market power
and their firm’s ability to influence the market. Students will also describe major trends in the market, specifically concerning new products, technologies, and
new entrants. Students can further determine the future health of their firm to inform their final recommendations by examining their firm’s place within the
market.
Prompt: Submit a draft of the Costs of Production (Section IV), Overall Market (Section V), and Recommendation (Section VI) of your research paper, including
all critical elements listed below. You will review your firm’s financial reports and other relevant data sources to collect and analyze cost information for your firm
over the past five or so years. Using real data and the economic tools developed in Module Four, you will analyze your firm’s profitability and how costs impact its
growth. Additionally, you will find data on your firm’s competitors in order to detail your firm’s place within the market currently and over the past five or so
years. Lastly, you will develop a recommendation for how the firm can manage its future production.
Specifically the following critical elements must be addressed:
IV. Examine the costs of production for your firm.
a) Analyze the various costs a firm faces, their trends over time, and how they have impacted your firm’s profitability.
b) Apply the concepts of variable and fixed costs to your firm for informing its output decisions. For instance, analyze how different kinds of costs
(labor, research and development, raw materials) affect the firm’s level of output.
V. Explore the overall market for your firm.
a) Discuss the market share of the firm and its top competitors by providing details on current percentages for each firm and describing the trend
over time. You might consider presenting the data graphically.
b) Analyze the barriers to entry in this market to illustrate the potential for new competition and its impact on your firm’s future in the market.
c) Describe the market structure for this firm and analyze how this affects the firm’s ability to influence the market.
VI. Recommendation
a) Develop a recommendation for how the firm can manage its future production by synthesizing the data presented.
b) Suggest how the firm’s position within the market and among its competitors will allow it to take your recommended action.
c) Describe how the firm can sustain its success going forward by evaluating the findings from demand trends and price elasticity.
Rubric
Guidelines for Submission: Your paper must be submitted as a three- to six-page Microsoft Word document (each section should be one to two pages) with
double spacing, 12-point Times New Roman font, one-inch margins, and sources cited in APA format.
Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value
Costs of Production:
Profitability
Analyzes the various costs a firm
faces, their trends over time, and how
they have impacted the firm’s
profitability
Analyzes the various costs a firm
faces, and their trends over time, but
does not discuss how they have
impacted the firm’s profitability
Does not analyze the various costs a
firm faces, their trends over time, or
how they have impacted the firm’s
profitability
12
Costs of Production:
Output Decisions
Accurately applies the concepts of
variable and fixed costs to the firm for
informing its output decisions
Applies the concepts of variable and
fixed costs to the firm for informing
its output decisions, but applies
concepts inaccurately
Does not apply the concepts of
variable and fixed costs to the firm for
informing its output decisions
12
Overall Market: Market
Share
Discusses the market share of the
firm and its top competitors by
providing details on current
percentages for each firm and
describing the trend over time
Discusses the market share of the
firm and its top competitors, but does
not provide details on current
percentages for each firm or does not
describe the trend over time
Does not discuss the market share of
the firm and its top competitors
12
Overall Market: Barriers
to Entry
Analyzes the barriers to entry in this
market to illustrate the potential for
new competition and its impact on
the firm’s future in the market
Analyzes the barriers to entry in this
market, but does not illustrate the
potential for new competition or its
impact on the firm’s future in the
market
Does not analyze the barriers to entry
in this market
12
Overall Market: Market
Structure
Describes the market structure for
this firm and accurately analyzes how
this affects the firm’s ability to
influence the market
Describes the market structure for
this firm, but does not analyze how
this affects the firm’s ability to
influence the market or analysis is
inaccurate
Does not describe the market
structure for this firm
12
Recommendation: Future
Production
Effectively develops a
recommendation for how the firm
can manage its future production by
synthesizing the data presented
Develops a recommendation for how
the firm can manage its future
production, but recommendation is
not effective or is not based on a
synthesis of the data presented
Does not develop a recommendation 12
Recommendation:
Recommended Action
Suggests how the firm’s position
within the market and among its
competitors will allow it to take the
recommended action
Suggests how the firm’s position
within the market and among its
competitors will allow it to take the
recommended action, but
suggestions are not appropriate
Does not suggest how the firm’s
position within the market and
among its competitors will allow it to
take the recommended action
12
Recommendation:
Sustain its Success
Describes how the firm can sustain its
success going forward by evaluating
the findings from demand trends and
price elasticity
Describes how the firm can sustain its
success going forward, but does not
evaluate the findings from demand
trends and price elasticity in the
discussion
Does not describe how the firm can
sustain its success going forward
12
Articulation of Response Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors related
to citations, grammar, spelling,
syntax, or organization that negatively
impact readability and articulation of
main ideas
Submission has critical errors related
to citations, grammar, spelling,
syntax, or organization that prevent
understanding of ideas
4
Earned Total 100%