Alfaisal University Product Analysis Worksheet

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Product Analysis:

You shall cover the followings for the company analysis:

  • Explain past, present, and future price of the product through the use of demand and supply analysis
    • Pricing policy and profit margin
    • Factors affecting its pricing and profitability
    • Demand analysis (use actual data along demand curves)
    • Supply analysis (use actual along supply curves)
    • Calculate Elasticity (calculate price elasticity of demand, cross price elasticity, and income elasticity) and link to the pricing policy
  • Consumer theory and preferences for the product using indifference curve and income
  • Cost analysis (ATC, AVC, AFC, MC, sunk cost and optimum uses of capital and labor)
  • Revenue analysis (AR, P, MR, TR)
  • Profit/loss analysis in the short-run and long-run
  • Economic vs accounting cost/profit
  • Efficiency analysis (for consumers, producers, and society)

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