You may be aware that there are three types of profit: accounting profit, economic profit, and normal profit. The difference between the
total revenue and the sum of the explicit and implicit costs of an organization results in economic profit. It is commonly assumed that
every firm’s goal is to maximize its profit, and the economic theory of business is built on this underlying assumption.
Write a 500 – to 600 – word paper that addresses the following:
• Describe the economic principles that company executives should consider when developing a strategy or strategies that will
maximize profits while minimizing incentives for competitors to develop competing products.
• Explain why each of these economic principles is important to the company’s strategy.
• Recommend and justify a strategy that you believe will maximize profits while minimizing incentives for increased competition.
Addition information:
In addition to fully answering the assignment’s questions, each Assignment will be evaluated for clarity of writing, critical analysis of
the issues, proper use of references to support the positions taken, and adherence to APA standards.
Also see this assignment’s rubric provided.
Rubric for paper
Student Name Total Points Possible
50
Criterion Mastery Criteria (100%)
Element 1 – Economic Principles Related to Maximizing Profits and Minimizing Incentives For Competitors (11 points maximum) Student
provides a thorough and detailed description of the economic principles that company executives should consider when developing a strategy
or strategies that will maximize profits while minimizing incentives for competitors to develop competing products. Several resources and
examples support thinking.
Element 2 – Economic Principles & Importance to Company’s Strategy (11 points maximum) Student provides a thorough and detailed
explanation of why each of these economic principles is important to the company’s strategy. Several resources and examples support
thinking.
Element 3 – Recommendation (11 points maximum) Student provides a thorough and detailed recommendation and justifies a strategy that
he/she believes will maximize profits while minimizing incentives for increased competition. Several resources and examples support
thinking.
Element 4 – Critical Thinking (7 points maximum) Student exhibited excellent critical analysis and thinking throughout the paper,
consistently supporting their thinking with relevant resources and examples. Excellent logical progression of ideas with detailed
supporting rationales.
Element 5 – Writing Skills (5 points maximum) Student submitted a paper that was perfect and fully consistent with Academic Writing
Expectations and demonstrated an excellent understanding to audience and purpose of writing. Student used a scholarly voice that
skillfully communicated meaning to readers with clarity and fluency and used correct spelling and grammar.
Element 6 – APA Format and Style (5 points maximum) Student’s paper demonstrated excellent use of paraphrasing, summary, or quoting to
develop ideas appropriate for the assignment and communication praxis. Student’s paper demonstrated consistent adherence to APA formatting
and style, and the paper contained no errors in heading levels, margins, pagination, etc. All sources and references are cited per APA
format.