ECO 520 Final Project: Investment Opportunity Analysis Guidelines and Grading Guide Overview This investment opportunity analysis project is designed to guide you through the process of applying key components of advanced microeconomics theories to typical business decisions. You will assume the role of an entrepreneur, and you will conduct an analysis focusing on an investment opportunity of your choice. In your analysis you will carefully evaluate key factors influencing the demand for the product, cost and supply issues, the role of market structure, and competitive analysis on firm strategy. You will also analyze the effects of government regulations and market intervention on potential profitability, and you will use price and non-price strategies to support product introduction. Using the above analyses, the last step in your final project requires you to model the potential financial viability of the proposed new product using approximate figures. You will determine whether or not to recommend investing in the development and commercialization of the investment opportunity to your business partners. This assignment will assess your mastery of the following course outcomes: • Analyze product demand, company revenues, and the effects of external market influences through the use of microeconomic principles • Analyze organizational costs and identify technical and economically efficient methods of production and acquisition of resources through the use of microeconomic principles and tools • Evaluate the effect of market structure and consumer behavior on firm strategies and profitability • Recommend pricing strategies based on marketing conditions, which improve firm profitability and can be effectively implemented • Evaluate government regulations and interventions for their effects on business and market performance Prompt Develop an analytical document informed by key advanced microeconomic theories and principles. The purpose of your analysis is to assist with the decision to implement a product or service for a start-up company (submit your product or service for approval to the instructor). Specifically, the following critical elements must be addressed in your analysis: 1. Opportunity Background and Demand: In this section you will identify an appropriate investment opportunity specific to introducing a new product or service. You will analyze product demand and company revenues specific to this opportunity applying key economic principles to support your reasoning. a. Background: Provide a brief background on the company, product line, and proposed product. This is where you would lay the foundation for the analysis that follows. What is the significance of this opportunity? 1 b. Demand: Evaluate key non-price variables that are expected to support existing or potential demand specific to this opportunity and support your evaluation with sources. For example, this is where you want to include rationale f ...

1. ECO 520 Final Project: Investment Opportunity Analysis
Guidelines and Grading Guide
Overview
This investment opportunity analysis project is designed to
guide you through the process of applying key components of
advanced microeconomics theories to typical
business decisions. You will assume the role of an entrepreneur,
and you will conduct an analysis focusing on an investment
opportunity of your choice. In your analysis you
will carefully evaluate key factors influencing the demand for
the product, cost and supply issues, the role of market structure,
and competitive analysis on firm strategy.
You will also analyze the effects of government regulations and
market intervention on potential profitability, and you will use
price and non-price strategies to support
product introduction. Using the above analyses, the last step in
your final project requires you to model the potential financial
viability of the proposed new product using
approximate figures. You will determine whether or not to
recommend investing in the development and commercialization
of the investment opportunity to your business
partners.
This assignment will assess your mastery of the following
course outcomes:
• Analyze product demand, company revenues, and the
effects of external market influences through the use of
microeconomic principles
• Analyze organizational costs and identify technical and
economically efficient methods of production and acquisition of
resources through the use of microeconomic
principles and tools
• Evaluate the effect of market structure and consumer
behavior on firm strategies and profitability
• Recommend pricing strategies based on marketing

2. conditions, which improve firm profitability and can be
effectively implemented
• Evaluate government regulations and interventions for
their effects on business and market performance
Prompt
Develop an analytical document informed by key advanced
microeconomic theories and principles. The purpose of your
analysis is to assist with the decision to implement
a product or service for a start-up company (submit your
product or service for approval to the instructor).
Specifically, the following critical elements must be addressed
in your analysis:
1. Opportunity Background and Demand: In this section you
will identify an appropriate investment opportunity specific to
introducing a new product or service. You
will analyze product demand and company revenues specific to
this opportunity applying key economic principles to support
your reasoning.
a. Background: Provide a brief background on the company,
product line, and proposed product. This is where you would lay
the foundation for the analysis
that follows. What is the significance of this opportunity?
1
b. Demand: Evaluate key non-price variables that are
expected to support existing or potential demand specific to this
opportunity and support your
evaluation with sources. For example, this is where you want to
include rationale for your selection, such as empirical data for
this type of product/service.
2. Production and Resources: In this section you will evaluate
variables specific to production and resource costs for the
improvement of organizational costs.
a. Costs: Assess what key non-price variables could be
expected to affect production costs of the new product. How can
these aspects be leveraged to effect
efficient methods of production and acquisition of resources to

3. improve upon organizational costs?
b. Constraints: Assess constraints that could affect future
production and costs. How can these aspects be leveraged to
effect efficient methods of production
and acquisition of resources to improve upon organizational
costs?
c. Effects: Assess the effect of potential technology changes
on production, costs, or competition. How can these aspects be
leveraged to effect efficient
methods of production and acquisition of resources to improve
upon organizational costs?
3. Market Structure: In this section you will evaluate the market
structure and influences on firm strategies and profitability.
a. Market Competition: What is the existing and potential
market competition? How do these companies affect the firm's
strategies and profitability? This is
where you would discuss the type of competitors, number of
competitors and barriers to entry.
b. Firm Strategies: What are potential price and non-price
strategies that the firm might use and what is their relationship
to the market structure? For
example, discuss a strategy that would support the success of
your product. Depending on how the industry is structured you
might discuss how it is
consistent with the market structure. Perhaps you would address
how it is different. Once you address this, you would discuss
how your choice provides an
advantage in the market.
4. Effects of Regulation and Intervention: In this section you
will evaluate the effects of government regulation and
interventions that may impact your business. For
example, you could discuss how well the market operates and
include examples of aspects of market performance specific to
your selection. Is it efficient? Does it
produce good outcomes? Why or why not?
a. Policies: Identify policies or regulations at the local, state,

4. or national level that could potentially affect your business.
What are the potential effects on the
firm's goals and performance?
b. Effects: How do these policies or regulations affect your
ability to compete and profitably operate in your business?
Include examples specific to aspects of
market performance to support your conclusions. For example,
some forms of regulation, such as patent protection, may afford
more profit opportunities
while others, such as environmental regulations, may add to
your costs.
s. Outlook Recommendations: In this section you will
evaluate the outlook for success for this investment
opportunity? Is it likely to be profitable? Not profitable?
What factors support this outlook? Apply appropriate principles
that support your statements. Remember, your conclusions
should be logical and based on your
analysis of A-D.
a. Risk: What level of risk is present? This is where you
would discuss what uncertainties are present that would
negatively impact the firm's outlook based on
your analysis. For example, you might discuss the effects of
rational and irrational consumer decision making on demand for
this product and how it
impacts this outlook.
b. Opportunities: What opportunities exist that would appeal
to potential investors based on your analysis? What factors
support these opportunities?
c. Strategies: What pricing strategies would you recommend
to improve firm profitability? For example, should you match
what your competitors do? Is the
product or service specialized? Would you bundle the product
or services? Would you use price discrimination? Explain why
you chose this strategy.
d. Implementation: How can these strategies be effectively
implemented based on market conditions? This is where you

5. would describe examples of effective
implementation specific to different market conditions.
e. Capitalizing on Government Policy: How can the new
venture take advantage of government policies to maximize
profitability?
Milestones
Milestone One:Topic and Background In/ormation
In task 2-2, you will submit a 2-3-page paper on the background
and demand of the investment opportunity you identified for
your final project. This milestone is graded
with the Milestone One: Topic and Background Information
Rubric.
Milestone Two:Production and Resources
In task 4-4, you will submit a 2-3-page paper that analyzes your
investment opportunity production and resources factors by
costs, constraints, and effects of technology.
This milestone is graded with the Milestone Two: Production
and Resources Rubric.
Milestone Three:Market Competition and Firm Strategies
In task 7-2, you will submit a 3-5-page paper on market
competition and firm strategies. This milestone is graded with
the Milestone Three: Market Competition and Firm
Strategies Rubric.
Final Submission: Investment Opportunity Analysis
In task 9-2, you will submit your final project, a ID-12-page
analytical document informed by key advanced microeconomic
theories and principles, which will assist with
the decision to implement a product or service for a start-up
company. This paper will be graded using the Final Product
Rubric (below).
Deliverable Milestones
Milestone
Deliverables
Module Due
Grading

6. 1
Topic and Background Information
Two
Graded separately; Milestone One Rubric
2
Production and Resources
Four
Graded separately; Milestone Two Rubric
3
Market Competition and Firm Strategies
Seven
Graded separately; Milestone Three Rubric
Final Submission
Nine
Graded separately; Final Product Rubric
Final Product Rubric
Requirements of Submission: 12 Point Times New Roman font,
double spaced, adhering to all appropriate writing conventions,
including APA style citation format and a
scholarly tone. Page-length requirements: 10-12 pages not
including title and references pages
This activity uses an integrated rubric in Blackboard. Students
can view instructor feedback in the Grade Center. For more
information, review
Instructor Feedback: Students can find their feedback in the
Grade Center.
Critical Elements
Exemplary
Proficient
Needs Improvement
Not Evident
Value
Background
Meets "Proficient" criteria and

7. Provides a summary of an
Provides summary of an
Does not provide a summary of
7
includes economic concepts that
investment opportunity
investment opportunity but with
an investment opportunity
enrich and extend the summary
including company, product line,
gaps in addressing critical
and proposed product specific to
aspects of company, product
this opportunity that informs
line, and proposed product
audience
specific to this opportunity that

8. informs audience
(7)
(6.3)
(4.9)
(0)
Demand
Meets "Proficient" criteria and
Evaluates key non-price
Evaluates key non-price
Does not evaluate key non-price
7
qualifies evaluation with
variables that are expected to
variables that are expected to
variables that are expected to
economic concepts that enrich
support existing or potential
support existing or potential
support existing or potential
and extend the evaluation
demand specific to this
demand specific to this
demand specific to this

9. opportunity using appropriate
opportunity but with gaps in
opportunity
resources to support the
appropriate resources that
evaluation
support the claims made in the
evaluation
(7)
(6.3)
(4.9)
(0)
Costs
Meets "Proficient" criteria and
Analysis of key non-price
Analyzes key non-price variables
Does not analyze of key non-
7
qualifies with economic

10. variables addresses how these
but with gaps in how these
price variables
concepts that enrich and extend
aspects can be leveraged to
aspects can be leveraged to
the claims
improve upon organizational
improve upon organizational
costs
costs
(7)
(6.3)
(4.9)
(0)
Constraints
Meets "Proficient" criteria and
Analysis of constraints addresses
Analyzes constraints but with
Does not analyze constraints
7
qualifies with economic

11. how these aspects can be
gaps in how these aspects can
concepts that enrich and extend
leveraged to improve upon
be leveraged to improve upon
the claims
organizational costs
organizational costs
(7)
(6.3)
(4.9)
(0)
Effects of Technology
Meets "Proficient" criteria and
Assesses effects of potential
Assesses effects of potential
Does not assess effects of
7

12. qualifies with economic
technology for how these
technology but with gaps for
potential technology
concepts that enrich and extend
aspects can be leveraged to
how these aspects can be
the claims
improve upon organizational
leveraged to improve upon
costs
organizational costs
(7)
(6.3)
(4.9)
(0)

13. Market Competition
Meets "Proficient" criteria and
Assesses market competition for
Assesses market competition but
Does not assess market
7
qualifies with economic
impact on firm strategies and
with gaps on their associated
competition
concepts that enrich and extend
profitability
impact on firm strategies and
the claims
profitability
(7)
(6.3)
(4.9)

14. (0)
Firm Strategies
Meets "Proficient" criteria and
Assesses potential firm price and
Assesses potential firm price and
Does not assess potential firm
7
qualifies with economic
non-price strategies for their
non-price strategies but aspects
price and non-price strategies
concepts that enrich and extend
relationship to the market
of their relationship to the
the claims
structure
market structure are unclear
(7)
(6.3)
(4.9)

15. (0)
Policies
Meets "Proficient" criteria and
Identifies policies or regulations
Identifies policies or regulations
Does not identify policies or
7
qualifies with economic
at the local, state, or national
at the local, state, or national
regulations at the local, state, or
concepts that enrich and extend
levels that may affect business
levels that may affect business
national levels that may affect
the claims
explaining the reasoning for
but with gaps in explaining
business
these policies
reasoning for these policies

16. (7)
(6.3)
(4.9)
(0)
Effects of
Meets "Proficient" criteria and
Describes the potential effects of
Describes the potential effects of
Does not describe the potential
7
Interventions
qualifies with economic
the identified government
the identified government
effects of the identified
concepts that enrich and extend
policies or regulations on the
policies or regulations but with
government policies or
the claims
firm's goals and performance
gaps on how aspects impact
regulations on the firm's goals

17. firm's goals and performance
and performance
-
(7)
(6.3)
(4.9)
(0)
--- ------
_.
Outlook:
Meets "Proficient" criteria and
Evaluates risks that would
Explains risks but with gaps in
Does not evaluate risks
7
Risk
qualifies with economic
negatively impact the firm based
evaluating how they would
concepts that enrich and extend
on analysis
negatively impact the firm
the claims

18. (7)
(6.3)
(4.9)
(0)
Outlook:
Meets "Proficient" criteria and
Explains opportunities that
Explains opportunities that
Does not explain opportunities
7
Opportunities
qualifies with scholarly examples
appeal to potential investors
appeal to potential investors but
supported by factors that
with gaps in addressing factors
support these opportunities
that support these opportunities

19. (7)
(6.3)
(4.9)
(0)
Outlook: Pricing
Meets "Proficient" criteria and
Explains and analyzes pricing
Explains pricing strategy but with
Does not explain pricing
7
Strategies
qualifies with economic
strategies that would improve
gaps in how aspects would
strategies
concepts that enrich and extend
firm profitability
improve firm profitability
the claims

20. (7)
(6.3)
(4.9)
(0)
Outlook:
Meets "Proficient" criteria and
Explains how the recommended
Explains how the recommended
Does not explain recommended
7
Implementation
qualifies with economic
pricing strategies can be
pricing strategies but with gaps
pricing strategies
concepts that enrich and extend
effectively implemented based
in how they can be effectively
the claims
on market conditions
implemented based on market

21. conditions
(7)
(6.3)
(4.9)
(0)
Outlook:
Meets "Proficient" criteria and
Explains how the new venture
Explains how the new venture
Does not explain how the new
7
Government
qualifies with economic
can leverage government policy
can leverage government policy
venture can leverage
I
Interventions
concepts that enrich and extend
to maximize profitability
but it is unclear how aspects
government policy

22. the claims
would maximize profitability
(7)
(6.3)
(4.9)
(0)
Articulation of
Submission is free of errors
Submission has no major errors
Submission has major errors
Submission has critical errors
2
Response
related to citations, grammar,
related to citations, grammar,
related to citations, grammar,
related to citations, grammar,
spelling, syntax, and
spelling, syntax, or organization
spelling, syntax, or organization
spelling, syntax, or organization

23. organization and is presented in
that negatively impact
that prevent understanding of
a professional and easy to read
readability and articulation of
ideas
format
main ideas
(2)
(1.8)
(1.4)
(0)
Earned Total
100