# What are the supply determinants of the solar panel industry?

Supply Determinants:
a.
Each individual determinant analyzed for your situation, with examples applicable to
your situation (3 points each) and research (2 points each) showing current supply
data or most recent past data, except for the expectations determinant in which you
need to use data estimating future market conditions.
i. (20 points) You need to be very specific in the cost of production determinant
to identify fixed, variable, and marginal cost in order to derive your supply
curve for the graphing component. You will need to explain and show how
profit maximization or loss minimization output and price are determined.
You will need to do the math using actual figures [cited] or your own
estimated figures [identified as such] and explain why you expect short run
ECON545
Paper Project 1
Page 2 of 7
economic or normal profits, acceptable loss or temporary shutdown, and how
you will know which it is.
ii. The number of sellers determinant must contain your analysis of the kind of
market structure in which your firm or labor service will be sold.
b. (10 points) Price Elasticity of Supply you have based on the cost of production
changes as output changes, including actual calculation of it using the midpoint
formula. If you can?t find data, then determine the price elasticity from the
characteristics and make up numbers to use. Be sure to identify this if you use this
approach. This will help you in deciding the slope of your supply curve.
c.
(5 points) Graph your supply situation using the numbers from your earlier cost of
production analysis
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The Solar Industry. Should I start a solar panel business?
Supply Determinants:
Each individual determinant analyzed for your situation, with examples applicable to
your situation (3 points each) and research (2 points each) showing current supply
data or most recent past data, except for the expectations determinant in which you
need to use data estimating future market conditions.
a. (20 points) You need to be very specific in the cost of production determinant
to identify fixed, variable, and marginal cost in order to derive your supply
curve for the graphing component. You will need to explain and show how
profit maximization or loss minimization output and price are determined.
You will need to do the math using actual figures [cited] or your own
estimated figures [identified as such] and explain why you expect short run
economic or normal profits, acceptable loss or temporary shutdown, and how you
will know which it is. The number of sellers determinant must contain your analysis
of the kind of market structure in which solar panel services will be sold.
b. (10 points) Price Elasticity of Supply you have based on the cost of production
changes as output changes, including actual calculation of it using the midpoint
formula. If you can?t find data, then determine the price elasticity from the
characteristics and make up numbers to use. Be sure to identify this if you use this
approach. This will help you in deciding the slope of your supply curve.
c.(5 points) Graph your supply situation using the numbers from your earlier cost of
production analysis

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