Microeconomics capstone

Please read the instructions below and answer the question

– Project – Our team selected Scania as the company and their Transportation vehicles as the product. Our proposal is to explore countries in the EMEA for potential investment. Our countries chosen are Georgia and Bulgaria. The target of this study is to prepare a Microeconomics analysis of Bulgaria and Georgia that will be inserted into our group’s feasible plan for the setup of a manufacturing plant for the alternative fuels vehicles (full instructions below)

(Please see excel spreadsheet attached; Georgia is ranked 1 and Bulgaria is ranked 2)

Instruction/Question – Your objective in this milestone is to conduct a brief microeconomics analysis of the two target countries (Georgia – 420 words & Bulgeria- 420 words).

Your objective in this milestone is to categorize the market for your product in the two selected countries.
1) Please use the traditional model for classifying industrial organization on the continuum from perfect competition to monopoly. However, remember that most markets and products do not fit the definitions neatly, and will likely be somewhere in between the various classifications.
2) Make sure you clearly define and explain what you consider to be the market for a given product, since the definition of the market matters greatly.
3) Once categorized, the implications for both short-term and long-term profit potential of your product should be discussed, as well as any impact that the regulatory and tax environment have on these potential profit opportunities.
4) You should consider the following questions: Are there opportunities for price discrimination that can be utilized to increase this profit? Any other pricing opportunities that may maximize profits, such as bundling?

The Board of Directors will need to feel confident that the microeconimic risks do not put the company’s resources unnecessarily at risk. You should assume that your audience is intelligent, well-educated individuals, who may not have a great deal of knowledge of the country in question.

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