Microeconomics Term Paper

FI NAL PROJECT

1. Select two companies whose product(s) you use in your daily life. You may choose any firms you wish, as long as their information is publicly available (as to their products and financial information) and they are known to the average person.

2. Describe, in detail, each company's product line in terms of:

a. Product description and usage

b. Factors that determine the demand for the products

c. Factors that determine the supply of the products

d. Available substitutes for the product

e. Available complements for the product

f. Is demand for the product elastic or inelastic in the short run? In the long run?

g. Is the firm's production capital-intensive or labor-intensive? How important is technology in the producing the product? Why?

3. In which of the four market structures does each firm operate? Describe the attributes of the firm's market that show why that is the relevant market structure.

4. What do you think are the long term prospects for the product? Why?

The two companies I chose to discuss are is Procter & Gamble (http://www.pg.com/en_US/index.shtml ) and Organic Valley. The products I would like to focus on are “Crest Baking Soda & Peroxide Whitening with Tartar Protection Striped Toothpaste” from Procter & Gamble and milk from Organic Valley (http://www.organicvalley.coop/products/milk-and-cream/?gclid=CPeur5fVgaACFQtx5Qodjkyxmg) . Milk and toothpaste are products that I use every day and everyone is familiar with them.

Crest Baking Soda & Peroxide Whitening with Tartar Protection Striped Toothpaste:

The Wikipedia definition for toothpaste describes what toothpaste is and how should be used: “Toothpaste is a paste or gel dentifrice used with a toothbrush to clean and maintain the aesthetics and health of teeth. Toothpaste is used to promote oral hygiene: it can aid in the removal of dental plaque and food from the teeth, aid in the...