*Please show all work, use excel and identify the value and units measured. (Notes for my own Use: Ch10:2) Location Problem with Two Sites. Oliveira Office Supply has a large retail system consisting of 12 stores spread around the country, often in direct competition with Kilroy. However, managers at Oliveira have decided
Which level indicates the point of maximum economic efficiency? Lowest point on AC curve Lowest point on AVC curve Lowest point on MC curve None of the above A monopoly will usually produce where its demand curve is inelastic where its demand curve is elastic
Suppose the demand for Levi jeans increases by 9%. If the supply elasticity is 0.7 and the demand elasticity is 0.8 what will be the percentage change in the equilibrium price?
1. Suppose that macroeconomic forecasters predict that the economy will be expanding in the near future. How might managers use this information 2. Governments impose excise taxes on goods that have inelastic demand, such as cigarettes, more often than in other cases. Explain why
You have the following data for the last 12 months' sales for the PRQ Corporation (in thousands of dollars): January 500 July 610 February 520 August 620 March 520 Sep
Suppose a firm has the following demand equation: Q = 1,000 - 3,000P + 10A, where Q = quantity demanded P = product price (in dollars) A = advertising expenditures (in dollars) Assume for the questions below that P = $3 and A = $2,000 a. Suppose the firm dropped the price to $2.50.
Which of the following will cause the demand curve for gasoline to shift leftward? a. a decrease in the price of gasoline b. an increase in the price of gasoline c. a leftward shift of the supply of gasoline d. a rightward shift of the supply of cars e. a decrease in the price of bicycles Markets reduce transactions co
Since the September 11th attack there has been an increase in the demand for security personnel: police, air marshals, airport security, etc. How has the higher demand affected the equilibrium wage? In which direction do you think the labor supply and demand shifted? I personally see a shift in both directions. Security
List the names of the some companies that are in monopoly business. Explain whether a monopoly could increase its revenue and its profits by charging different prices to different groups of customers. Give a numerical example to illustrate your point OTHER THAN SENIOR DISCOUNTS.
Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops from 30 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic? Be sure t
1.) We make choices as consumers every day. Opportunity cost is defined as a person's "next best alternative" or "the cost of what you give up when you make a choice." Think of a recent decision you made regarding your career. What was your opportunity cost for making that choice? What was your "next best alternative"? 2.)
Congress is considering increasing the sales tax on gasoline by $.03 per gallon. Last year motorists purchased 10 million gallons of gas/month. The demand curve is such that every $.01 increase in price, producers are willing to provide 50000 more gallons of gasoline to the market. The legislature has stated that the $.03 tax
Hourly Hours per Week Wage Q1 Q2 Q3 QT $5 20 0 0 6 25 0 0 7 35
1. The government is known to utilize product's elasticity measures to set taxes and subsidies. Do you feel they should use this information to set policy on tobacco products? 2. Can you cite an example of why knowing the elasticity of a product would be useful for government officials? How would it be useful to businesses?
12. The following payoff matrix represents the long-run payoffs for two duopolists faced with the option of buying or leasing buildings to use for production. Determine whether any dominant strategies exist and whether or not there is a Nash equilibrium. Firm 1 Lease Building Buy Building Lease F1 = 500 F1 = 75
A) Suppose you are an economic consultant for a large company that produces and sells lollipops that are shaped like the faces of Hollywood celebrities. The company has shops in the major cities around the country and also sells by mail order catalog. As an economic consultant, you have estimated the elasticity of demand for sto
A) Is it possible that you would purchase more of a good if its price rose? Is it possible that you would buy less of a good whose price falls? WHY or WHY NOT? B) What is an inferior good? C) What is the only determinant of demand that can have changed if there is a change in quantity demanded? What if there is a change in d
Demand for a managerial economics text is given by Q=20,000-300P. The book is initially priced at $30.00. a. Compute the point price elasticity of demand at P=$30 b. If the objective is to increase total revenue, should the price be increased or decreased? Explain. c. Compute the arc price elasticity for a price decrease fr
Explain the key differences between quantity demanded and demand using an example with Price.
Suppose the market demand data for the product are as follows: Price Total Quantity Demanded $26 17,000 32 15,000 38
5. How would each of the following changes affect the market for sugar? (I think these are Supply and Demand graphs) a. Development of a new zero-calorie sweetener. b. An increase in the demand for milk. c. A cut in the wages of farm workers.
Demand for advertising is given by: Qd = 30 - 0.0002P + 26V Qd = quantity demanded P = price per minute V = number of viewers All costs are fixed and the goal is to maximize total revenue. Suppose that the number of viewers is 1 million. What price should you charge? How many minutes of advertising to sell? Wha
Consider a service that you buy frequently. (Can use pedicure 2 times per month at $50 for graph and calculation) a. Suppose that the price was 5% lower and all other factors do not change. How much more would you buy each year? b. Using this information, calculate the own-price elasticity of your demand.
During the energy crisis in the United States there was a vigorous public campaign to encourage consumers to conserve on their electricity use. People did reduce their demand for electricity and ended up paying higher prices. How could such a thing happen? Not familiar with this, wanted some help to formulate a good essay.
Linear Programming Model. See attached file for full problem description.
Q2: The Snow City Ski Resort cater to both out of town and local skiers. The demand for each market segment as well as the combined market is given in the attached table. The marginal cost servicing either type of skier is constant at $10. There are no fixed costs. a. If the resort charges one price to all skiers, what price
Recently, cellular telephones have become very popular. at the same time new technology has made them less expensive to produce. By assuming the technology advance caused cost curves to shift downwards at the same time that demands was shifting to the right, draw a diagram or diagrams to show what will happen in the short and in
To raise money for a group, we are selling women's shirts. total demand for women's shirts comes from two groups: students and working professionals. The demand curves for two groups are represented as: 1. Students: Qs=120-10Ps (Q sub s=120-10P sub s) 2. working professionals: Qw=48-2Pw a. We may consider buying from ven
A U.S. pharmaceutical company holds a patent on a drug in the U.S. and an analogous patent in Canada. Its marketing department has identified the following inverse demand curves for this drug in the U.S. and Canada: P us =1,000 - Qdus and P can =500 - Qdcan The marginal revenues for each market is
Microeconomics is considered to be the study of scarce resources. Here, consumers (both individuals and organizations) must make allocation decisions. These three basic trade-offs include which goods/services are to be produced, how to produce them, and who gets them. Briefly explain to me the three trade-offs within a specific