Problem
ST. JOHNS UNIVERSITY MACROECONOMICS FINAL PRESENTATION CASE STUDY. Develop a plan to manage a corporation during a Business Cycle. It is assumed the company will be a for profit pure competitive company. Stage One, as the Recession begins the demand for your product or services reduce substantially. You need to determine the Market Equilibrium, the Margin Cost= Marginal Revenue. Analyze the Total Revenue from a 5% reduction in demand and how you would drive your Revenue to cover the total Cost. Determine the price of your product and compare the peak price to the demand price as the economy slows. During the First Stage it has two back to back quarters of negative activity. Stage Two, as the economy hits the Bottom level, 10% reduction in revenue hits the company. Determine your cost, and Profit Margin to Price, Cost of Production and Profit. Determine how you will maintain your operation after the impact of an initial 5% reduction in demand, with an additional 10 %. Explore all possibilities of matching the Supply of the product or services with the Demand at a determined price. The goal at this level should be to not only keep operating but to improve your.