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

Managerial economics exam some conceptual questions -1

Managerial Economics Exam Some Conceptual Questions - 1. Explain the prediction of the Bertrand duopoly model that both firms will price at marginal cost. How does Cournot Duopoly differ? 2. Explain how first, second, an ...

Economics for managers assessment examquestion 1 a firm is

ECONOMICS FOR MANAGERS ASSESSMENT: EXAM Question 1 A firm is making a profit under conditions of monopolistic competition if, at the equilibrium output, AR is above MR MR is above AR AR is above AVC AR is above ATC Quest ...

Economic assignmentsuppose that there are two products

Economic Assignment Suppose that there are two products: clothing and soda. Both Brazil and the United States produce each product. Brazil can produce 100,000 units of clothing per year and 50,000 cans of soda. The Unite ...

Managerial economics assignmentprice quotes and pricing

Managerial Economics Assignment Price Quotes and Pricing Decisions Applied Problems Please complete the following two applied problems: Problem 1: Jessica Alba, a famous actress, starts the baby and family products busin ...

Economics for managers assessment examquestion 1 if planned

ECONOMICS FOR MANAGERS ASSESSMENT: EXAM Question 1 If planned investment decreases, the multiplier will decrease the equilibrium income. True False Question 2 The change in the level of planned spending that results from ...

Questionidentify two health care product advertisements

Question: Identify two health care product advertisements from radio, television, newspaper, magazines, or social media. Possible products could include blood pressure cuffs, blood glucose meters, and food diary apps. Th ...

Law and economics problem setquestion 1 legal value of a

Law and Economics Problem Set Question 1: Legal Value of a Claim The tree below is identical to the tree we saw in class. Questions: a) Alter the figure so that a trial (but not the appeal) costs the plaintiff $40 instea ...

Section aall questions carry equal marksq1 how does

Section A All questions carry equal marks. Q.1 How does economic theory contribute to managerial decisions? Q.2 Explain the law of demand. Briefly discuss the exception to the law of demand. Q.3 Explain the various compo ...

Economics for managers assessment examquestion 1 which of

ECONOMICS FOR MANAGERS ASSESSMENT: EXAM Question 1 Which of the following economic systems abolishes all private property? communism socialism fascism all of the above Question 2 The profit motive is one characteristic o ...

Economics for managers assessment examquestion 1 overseas

ECONOMICS FOR MANAGERS ASSESSMENT: EXAM Question 1 Overseas investments by U.S. citizens are recorded as credit items in the capital account of the U.S. balance of payments. True False Question 2 Under a fixed or control ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen