Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Managerial Economics Expert

Attempt all the problems.

Section-A

problem1) What are the key points in short run production functions which delineate three stages of production? Describe the relationship between law of diminishing return and three stages of production.

problem2) “Because of economics of scale, it is sometimes more cost effective for a firm to operate a large plant at less than maximum efficiency than the small plant at maximum efficiency”.  Do you agree with this statement?  Describe.

problem3) Describe the following concepts with appropriate ex.

(a) Opportunity Cost

(b) Discounting principle

problem4) “Managerial economics involves use of economic analysis to make business decisions involving the best use of a firm’s scarce resources” Describe the statement with appropriate ex.

Section-B

Case Study

Travel Company has hired the management consulting company to analyze demand in 26 regional markets for one of its major products: a guided tour to the particular country.  Consultant uses data to estimate the following equation:

Q = 1,500 = 4P + 5A+ 10I +3PX

where  Q = amount of the product demanded

P = price of the product in dollars
A= advertising expenditures in thousands of dollars.
I = income in thousands of dollars
PX = price of some other travel products offered by a competing travel company

problems:

a) Compute amount demanded for this product using the following data:

P = $400
A= $20,000
I = $15,000
PX = $500                                        

b) Assume the competitor reduced price of its travel products to $400 to match price of this firm’s product.  How much will this firm have to increase its advertising in order to counteract the drop in its competitor’s price?  Will it be worth it for them to do so?  Describe.                    

c) What other variables might be important in helping estimate the demand for this travel product?

Managerial Economics, Economics

  • Category:- Managerial Economics
  • Reference No.:- M93233

Have any Question? 


Related Questions in Managerial Economics

Advanced managerial economics assignment-learning outcomes

ADVANCED MANAGERIAL ECONOMICS ASSIGNMENT- LEARNING OUTCOMES: On completion of this assignment, you should be able to: 1. Apply economic concepts to real world economic phenomenon, and 2. Evaluate cases which require adva ...

Assignmentinternational management is significantly

Assignment International management is significantly influenced by cultural and institutional differences between home and host countries. International managers should have a better understanding of such differences, an ...

Applied managerial economics600-800 wordsapa formatprimary

Applied Managerial Economics 600-800 Words APA Format Primary Task Response: Respond to the following scenario with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas. ...

Describe an example of a time when you behaved as a

Describe an example of a time when you behaved as a “free rider.” Explain how your behavior may have been different had you had to pay for the good/service involved. Also describe how your specific free rider example cou ...

Explain the availability representativeness and affect

Explain the availability, representativeness, and affect heuristics. In your answer, compare the three and discuss the positive and negative aspects of each.

Managerial economics assignmentproblem 1 - you enjoy

Managerial Economics Assignment Problem 1 - You enjoy satisfaction from consuming sandwiches. Suppose there are two types of sandwiches, X and Y. 1) Graph your budget line if you are offered a "buy two, get one free (lim ...

Assignmentwrite a 1-2 page essay where in you choose a

Assignment Write a 1-2 page essay where in you choose a nation state in which you would like to open and operate a business.In your essay describe the problems you might encounter in entering the foreign market and in op ...

Managerial economics assignmentplease answer the following

Managerial Economics Assignment Please answer the following questions located in the template document. Submit the file as a Microsoft® Word® document to the Dropbox when completed. 1. Analyze whether each of the followi ...

Managerial economics assignmentthe homework covers ch 1113

Managerial Economics Assignment The homework covers Ch 11~13. It has to be your individual work. Copying answer from others will violate ACADEMIC HONESTY policy to cause a failing grade. For each question, please show th ...

Questionwhat is healththink about what you consider health

Question: What is health Think about what you consider health to be. View Rebecca Onie''s TED Talk, What If Our Healthcare System Kept Us Healthy? After watching this video, does your professional definition of health ch ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate