Using your understanding of economics present a detail report, in the current environment, on ONE (1) industry (an industry is a collection of firms producing similar products) in Trinidad & Tobago, namely the: *Petrochemical industry (analysis of two major companies) OR * Retail gas industry (analysis of two major distributors) SUB-TOPICS: 1. Introduction/Overview of the industry chosen: Give a brief background as it relates to the history and performance (available online) of each major firm that makes up the industry. 2. The Basic Economic Problem Under this heading students should apply the concepts of scarcity and choice faced by firms in the industry. This approach can be done by applying scarcity and choice as far as possible to how each firm utilises factors of production: • Labour:- estimated size of labour force, general types of jobs such as: un-skilled, semi-skilled and unskilled; • Land:- various locations, reasons for location, value of land – prime or sub-prime, use of raw materials and other substances from ‘below the land,’ current and other ways land is used; • Capital:- a) Money/loan needed for expansion and/or cash flow and b) amount (small, moderate, medium, large) of machinery and equipment employed and for what purposes? • Enterprise/Entrepreneurship:- Level s of profit over time, major shareholders, role of founder/entrepreneur/s 3. The Market (Demand & Supply together) Here students should explain and illustrate the nature of the market – current market price and quantity (estimate if data unavailable) and markets in movement i.e. applications of determinants of demand and supply to the industry. E.g. explain what will cause demand to shift to the left (decrease) with supply constant and the effects this will have on market price and quantity (demanded and supplied) and so on. 4. Elasticity Students should apply and explain how market demand changes from elastic to inelastic based on application of determinants of elasticity of demand such as time and ease of substitution. Price elasticity of supply and its relationship to its determinant should also be explained. 5. Business Economics Students should explain and apply to the industry concepts of production and productivity theory; short run cost and revenue decisions; long run cost (economies and diseconomies of scale); and profit maximizing decisions.