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Managerial Economics Questions

I need some assistance with three questions on the attached document. These are applied questions from Managerial Economics 8th Edition Christopher Thomas McGraw-Hill ISBN - 0-07-287174-1 Chapter 12 problem 4 Chapter 9 problem 4 Chapter 7 problem 1

Computing elasticities and independent variable etc.

The maker of a leading brand of low calorie microwavable food estimated the following demand equation for its product using data from 26 supermarkets around the country for the month of April: Q = - 5,200 - 42P + 20Px + 5.2I + 0.20A + 0.25M (2002) (17.5) (6.2) (2.5) (0.09) (0.21) R^2 = 0.55

Price Elasticity

The price of coal increases from $1250/ton to $1400/ ton, the quantity supplied increased from 2000 to 2050 tons per day. What is the price elasticity of supply?

Macroeconomic Questions

1. Remembering that demand elasticity is defined as the percentage change in quantity divided by the percentage change in price, if price decreases and, in percentage terms, quantity rises more than the price has dropped, total revenue will a) decrease b) increase c) remain the same d) either increase or decrease e) nothin

Price Elasticity

You are the only pharmacist in a small town; the next closest drugstore is 50 miles away. The population in your town consists of young farmers and older retired families. You have noticed that the young farmers are less sensitive to price changes than the retired population. Specifically, you have found that the working popu

Elasticity Concept

Government imposes excise taxes on goods that have inelastic demand, such a cigarettes, more often than in other cases. Why? Explain using the elasticity concept.

Competitive Market and Price

Why is it that for sellers in a purely competitive market, the price received for each item equals the marginal revenue, while for sellers in imperfectly competitive markets the price received for their product is greater than the marginal revenue?

Effects of Economy on Industry - Airlines

Select an industry that is affected by the economy. "Airline" Research how a current or past event in the industry has caused shifts with the price elasticity of supply and demand. Summarize your research. Research whether the industry produces public goods or private goods, and whether or not the goods are common resou

Sales - Demand Elasticity

2. The Inquiry Club at Jefferson University has compiled a book which exposes the sordid private lives of many of the professors on campus. Economics majors in the club estimate total revenue from sales of the book is given by the equation: TR = 120Q -0.1Q³ a. Over what range of sales is demand elastic? b. Initially, th

Point Income Elasticity/Point Cross Elasticity

5. The McNight company is a major producer of steel. Management estimates that the demand for the company's steel is given by the equation: Qs=5,000-1000Ps + 0.1I + 100 Pa Where Qs is steel demand in thousands of tons per year, Ps is the price of steel in dollars per pound, I is income per capita, and Pa is the price of alu

Cross Elasticity

3. Acme Tobacco is currently selling 5,000 pounds of pipe tobacco per year. Due to competitive pressures, the average price of a pipe declines from $15 to $12. As a result, the demand for Acme pipe tobacco increases to 6,000 pounds per year. a. What is the cross elasticity of demand for pipes and pipe tobacco? b. Assuming t

Demand Elasticity

1. A consultant estimates the price-quantity relationship for New World Pizza to be P=50-5Q. a. At what output rate is demand unitary elastic? b. Over what range of output is demand elastic? c. At the current price, 8 units are demanded each period. If the objective is to increase total revenue, should the price be increa

Cost Schedules & Elasticity

9. Suppose that the firm's cost function is given in the following schedule (where Q is the level of output). Output Q (units) Total Cost 0 7 1 25 2 37 3 45 4 50 5 53 6 58 7 66 8 78 9 96 10 124 Determine the: (a) Marginal cost schedule (b) Total cost schedule 11. The British Automob

Managerial Economics

1. Which of the following statements concerning marginal utility is (are) true? a. marginal utility measures the satisfaction the individual receives from a given incremental change in wealth b. marginal utility is given by the reciprocal of the slope c. a and b d. none of the above 2. Identify the reasons why the qua

Intermediate Economics

1. Money demand in an economy in which no interest is paid on money is M^d / P = 500 + 0.2Y - 1000i. a) Suppose that P = 100, Y = 1000, and i = 0.10. Find real money demand, nominal money demand, and velocity. b) The price level doubles from P = 100 to P = 200. Find real money demand, nominal money demand, and velocit

Price Elasticity

High-Time, Inc. manufactures medium proceed plastic wrist watches. High-time is considering lowering the price of its watches from the current $14 per unit to $10 per unit. High-Time currently sells 18,500 units per month. The firm's marketing department estimates the price elasticity of demand to be -2.5 over this price r

Economics of internet

Price/Cost Markup - Elasticity of Demand. See attached file for full problem description.

How construction is affected by the economy

In terms of home building and the construction industry, discuss how a current/past event has resulted in a change in price elasticity of supply and demand. Does it make public goods or common resources? In this industry, is price elasticity of demand though of as elastic or inelastic? Are there any available substitutes?

Various microeconomic problems

1. Inelastic demand means: a. the percentage change in price exceeds the percentage change in quantity purchased. b. this good would be a poor choice for taxation. c. the change in price divided by the change in quantity is less than one. d. the good is a necessity. 2. Prices for artificial flowers have fallen by 10 perc

What is the elasticity of demand given the price and income combination?

The demand for eggs is estimated by x=10000+.00002I - 2000px where px is the price of eggs i is the mean income of the area in thousands Initially, i =50,000 and px =3.00 What is the elasticity of demand given the price and income combination? Suppose the price goes up to $4, using consumers surplus, estimate the we

Demand Curves

Draw out multiple demand graphs and identify and explain and affect on quantity and price: 1) Elastic Demand Curve, 2) Perfectly Inelastic Demand Curve, 3) Perfectly Elastic Demand Curve, and 4) Unit Elasticity.

Interpret regression

Have this regression with the following results: y Coef. Std. Err. t P>t [95% Conf. Interval] age -.0313208 .0048588 -6.45 0.000 -.0408444 -.0217972 age2 .0005537 .0000652 8.50 0.000 .000426 .0006815 black -.9694474 .0396784 -24.43 0.000 -1.04722 -.8916744 female .4468672 .0279172 16.01 0.000 .3921472 .5015872

Homework Practice Quiz Help

Question 1 (1 point) Why does asymmetric information limit contracts from solving incentive conflicts? a. Because of unequal information, it is difficult and costly for parties to ascertain whether or not other parties to the agreement have honored the terms of the contract. b. All parties share in the same i

Problem Set

1. What is a demand for a productive resource, which is derived from the demand for the goods and services produced from that resource. 2. The elasticity of demand for labor depends on ? 3. List the key factors that have changed the supply of labor and that over the years have increased it. 4. Wages and employment have

Firm Costs and Response to Input Price Changes For a firm facing a constant returns to scale Cobb-Douglas production, derive the total cost function for the firm, Calculate the elasticity of total cost with respect to output for the firm, and illustrate the effect of the increase in the wage on labor utilization

Question 2: Firm Costs and Response to Input Price Changes Suppose a firm faces a constant returns to scale Cobb-Douglas production of the form: 2.1 Derive the total cost function for the firm, and calculate the total cost of producing 10,000 units of the output. 2.2 Calculate the elasticity of total cost with resp