My project is Walmart. The company I choose is Wal-Mart. As the Chief Executive Officer for Wal-Mart, a decision needs to be made on the addition of a new product in stores. The marginal benefit will be the turnover generated by the addition of the product whereas the marginal cost will be the cost of adding to product to the shelves. For example, marginal analysis shows that the additional product provides net marginal benefit. This does not necessarily make the addition the right decision, but giving more space to an existing product yields even larger net marginal benefit. In this case, adding a new product is the wrong decision because it is below an optimal standard. Therefore, as the CEO one would keep adding additional products till the point it generates maximum net gain. This point is called as the optimal point. After this point the marginal cost starts exceeding the marginal benefit. In marginal analysis we are weighing the benefits versus the cost.
This milestone ( 2-3 PAGE PAPER), which covers Section II of Final Project Part I, should be a paper structured as follows: a. Describe the price elasticity of supply or demand for your product or service. b. Explain how two non-price factors impact the demand of your chosen product or service. c. Explain how two non-price factors impact the supply of your chosen product or service. d. Define the industry and the market equilibrium associated with the product or service. e. Predict the effect of changes in supply and demand on the market equilibrium. f. Describe the decisions related to supply and demand for the product or service that you would make based on the predicted changes in supply and demand on the market equilibrium. For additional details, please refer to the Part I Milestone One Guidelines and Rubric document and the Final Project Part I Guidelines and Rubric document in the Assignment Guidelines and Rubrics section of the course