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    Managerial Economics

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    Pricing Strategy - American Baker's Association

    The American Baker's Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase was attributed to a reprot that diets rich in bran help prevent certain types of cancer. You are the manager of a bakery that produces and pa

    What are your firm's profits

    I'd like some help with this problem to make sure I'm heading in the right direction. This is from Baye 6th edition. You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your two products differently, but you are unable to identify these consumers individua

    Payback period for a project.

    The payback period for a project, requiring an initial outlay of $10,000 and producing ten uniform annual cash inflows of $1,500, is six years. six years and eight months. six years and six months seven years.

    Compute: Payback period, Present worth, IRR, NPVI for this project.

    7. As the manager of exploration for Chieftain Oil & Gas, you are evaluating a new offshore oil recovery module that will recover oil and gas deep in the Gulf of Mexico. The expected cash flows are: Initial investment $150 Million Net cash flows years 1 to 5, $20M (Million), $60M, $90M, $60M, $30M, then well depleted, no s

    Financial Impact of Outsourcing Landscaping Functions

    With this data I need to find out: 1) The one year financial impact of outsourcing the grounds maintenance 2) How will savings in the second year differ from year one 3) Find qualitative factors that should be considered in the decision whether or not to outsource. Here is the data for this problem: College A is consideri

    Electric generating plants of the Tennessee Valley Authority

    Some of the electric generating plants of the Tennessee Valley Authority are powered by coal. Coal is purchased by a separate procurement division and is transferred to the plants for use. Plant managers complain that the coal is below grade and causes problems with plant maintenance and efficiency. What do you think is causi

    Practice of Tipping at Restaurants

    In most restuarants, waiters receive a large portion of their compensation through tips from customers. Generally, the size of the tip is decided by the customer. However, many restaurants require a 15% tip for parties of 8 or more. a. why the practice of tipping has emerged as a major method of compensating the wait sta

    Electric generating plants

    Some of the electric generating plants of the Tennessee Valley Authority are powered by coal. Coal is purchased by a separate procurement division and is transferred to the plants for use. Plant managers complain that the coal is below grade and causes problems with plant maintenance and efficiency. What do you think is causi

    Pepsi and Fritos and LAYS

    Pepsi produces Fritos and Lays potato chips in addition to its basic soft-drink products. Discuss potential ways that this business combination might increase value. From an economic perspective why is such value increased in combinations like this? Can you think of other examples that have a similar bundling strategy for con

    Economic efficiency

    If a manager that takes over a furniture factory and realizes immediately that it was throwing away at least $100,000 a year worth of wood scrap and within a few weeks he sets up a task force of managers and workers to deal with the problem. Within a few months they reduced the amount of scrap to $7,000 worth per year. Was thi

    Behavioral Economics : Risky Behavior

    What is Risky Behavior Amoung Youths in Behavioral Economics? How does it affect the economy? What impact upon does it have on lives and the livilihood of the people or upon a major sector of the economy. How does this impact consumers/people. What role does the government if any? Where can graphics or statistics can be attain

    Decision management

    Define the terms decision management and decision control. a. Under what circumstances might it be optimal to make one individual responsible for both decision management and decision control? b. What do you expect the ownership of common stock to look like in such a firm? Explain.

    Managerial economics

    Marginal analysis: climate control devices, inc. estimates that sales of defective thermostats cost the firm an average of $25 ea. for replacement or repair. An independent engineering consultant has recommended hiring quality control inspectors so that defective thermostats can be identified & corrected before shipping. The fo