Economic Principles and Their Applications in The Real World Discussion
ANSWER
Economic Snapshot: Electric Vehicle Sector
Sector Overview:
The transportation sector’s rapidly expanding electric vehicle (EV) industry makes electric-powered cars an alternative to conventional internal combustion engine (ICE) vehicles. Unlike traditional vehicles, EVs have lower carbon emissions and higher energy efficiency because rechargeable batteries and electric motors power them. Various EVs, including battery electric cars (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs), are included in the industry.
Market Structure and Features: The electric car sector demonstrates oligopoly market structure features. In an oligopoly, a few dominant big businesses control the market, as in the EV sector, with corporations like Tesla, Nissan, Chevrolet, and BMW. These businesses control prices and the range of available products and have a substantial market share. Due to the high expenses associated with research and development, the need for advanced battery technology, and well-established brand awareness, the industry has significant entry barriers.
In the EV sector, two market traits favour the oligopoly structure:
Interdependence: The decisions of other competitors can be significantly influenced by the activities of one prominent player in the market, such as introducing a new model with cutting-edge features or lowering pricing. Because of this dependency, businesses strategically collaborate to obtain a competitive advantage.
Non-Price Competition: Companies in the EV business frequently differentiate their products through technology improvements, battery range, charging infrastructure, and other features rather than only competing on price. This non-price rivalry maintains loyalty to a brand and profit margins.
Microeconomic Links and Market Developments
The EV market has seen several noteworthy trends and microeconomic linkages, including:
Demand Growing: Consumer demand for electric vehicles has increased due to improvements in battery technology and mounting environmental sustainability concerns. This demand has sparked advancements in battery efficiency, the extension of the charging infrastructure, and cost-cutting.
Scale economies: As production quantities rise, these economies of scale start to operate, which lowers manufacturing costs per unit. This pattern has helped EVs become more reasonably priced and competitive with ICE cars.
Government incentives include tax credits, rebates, and access to carpool lanes. Many governments across the world provide incentives for EV adoption. These rewards are meant to encourage greener modes of transport and lower carbon emissions.
Government Influence: The development of the electric car market is significantly influenced by government action:
Subsidies and incentives: To promote the adoption of EVs and investment in R&D, governments may offer subsidies and incentives to customers and manufacturers. The market prices, demand, and production output can all be affected by these incentives.
Regulations: To encourage environmental standards and emission reductions, governments implement regulations. Manufacturers may concentrate on making electric vehicles in order to comply with stricter emission norms and laws.
Investment in Charging Infrastructure: Governments frequently spend money on constructing and expanding charging infrastructure to boost consumer confidence in EV adoption. This investment changes the market structure by lowering the entry barriers for new businesses joining the industry.
In conclusion, consumer demand, technology developments, and government incentives drive significant expansion in the oligopoly market-structured electric vehicle sector. Government interventions will continue to influence market prices, output, and the overall structure of the business as long as environmental sustainability and carbon reduction remain top priorities.
QUESTION
Description
Explain economic principles and their applications in the real world.
Summarize the different types of market structures and the role of government in economics.
In the workplace, we are often asked to create “briefs.” A brief provides a snapshot, or short, written summary, of a situation or event that has occurred. It is generally just a few pages long and may include additional visuals like a graph, chart, or table. In this assignment, write a brief about economic concepts in an industry that interests you.
An example economic brief, template, and resources are provided below.
Example Economic Brief, Assignment 1 Template, Strayer Writing Standards (SWS)
3.Review an example brief.
4.Use the optional template to help you get started.
5.Get familiar with the Strayer Writing Standards (SWS). (See Instructions below.)
Industry Selection
Use this resource to select an industry and learn about the products and services it provides:
oNAICS (North American Industry Classification System)
Select the number next to the industry to see its subsectors, e.g., select 52 to see Finance and Insurance.
Select that same number again to read about the industry as a whole or select a sub-category. For example, Mining is 21, and Oil and Gas Extraction, a sub-category, is 211.
Instructions
Review your previous chapter readings and use the resource above to develop an economic brief that is two to three (2-3) pages long in which you:
7.Select an industry and describe the goods and/or services this industry produces. Use the NAICS resource above to help you select an industry (and/or subsector) for your brief.
8.Identify this industry’s market structure and at least two or more market characteristics that support this market structure. (Market structures are covered in Weeks 3 and 4.)
9.Describe any notable microeconomic relationships, market outcomes, and/or trends in this industry. Include a graph, chart, or table containing related data. (Microeconomic relationships and market outcomes are covered in Weeks 2 through 4.)
10.How might government impact this industry’s market prices, output, and/or market structure? (Government intervention through price controls, industry regulations, and antitrust enforcement is covered in Weeks 2 and 4.)
11.This course requires use of Strayer Writing Standards (SWS). The format is different compared to other Strayer University courses. Please take a moment to review the SWS documentation for details. (Note: You’ll be prompted to enter your Blackboard login credentials to view these standards.)
Your brief should include a cover page.
Your brief should be two to three (2-3) pages in length (not including the cover page), double-spaced, 12-point font.
Your brief should include a minimum of one (1) reference/citation in the text.
Fill in the order form and submit all your files, including instructions, rubrics, and other information given to you by your instructor.
Once you complete filling the forms, complete your payment. We will get the order and assign it to a writer.
When your order is completed, it’s assigned to an editor for approval. The editor approves the order.
Once approved, we will upload the order to your account for you to download. You can rate your writer or give your customer review.
