Accounting Firm
1. Is an accounting firm operating in a perfectly
competitive market? Why or why not?
2. If the owner of the company ( accounting firm) asked you
to assess whether or not they were using the optimal amount of an input (given
a set price for that input), what economic criterion would you use in your
analysis?
3. If you were asked to assess the economic profitability of
the accounting firm, what economic tools would you use in your analysis?
4. What is the elasticity of demand for the product (or one
of the products) that is produced by the company? Given this elasticity of
demand, how should the company price their product in this market? Give
justification for your answer.
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