A manager must understand many factors to help a business increase revenue. One factor is that price times quantity yields total revenue for a product. Another relevant concept is that there are opportunity costs associated with any decision. Elasticity also affects revenues as managers change prices and quantities. Increasing Revenue OBJECTIVE: Choose methods to increase revenue in an organization. Resource: Ch. 1, 2, & 6 of Economics Content • Ch. 1: Limits, Alternatives, and Choices
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Define marginal opportunity cost. (ii) Why is a production possibility curve concave ? (iii) State two characteristics of resources which give rise to an economic problem. (iv) Give two examples of microeconomic studies 2. Give meaning of (i) demand, (ii) normal good and (iii) inferior good. 3 3. Explain the effect of ‘input price changes’ on the supply of a good. 3 4. Explain
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point each |T |1. |The most fundamental economic issue is scarcity. | |F |2. |Economics is the study of ways that people can earn more income. | |F |3. |Decisions are best when the decision maker focuses on average benefits and average costs. | |T |4. |Markets
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CHAPTER 11 MONEY, INTEREST, AND INCOME Chapter Outline • The Goods Market and the IS Curve • Investment and the Interest Rate • The Slope of the IS Curve • The Role of the Multiplier • The Position of the IS Curve • A Summary of the IS Curve • The Money Market and the LM Curve • The Demand for Money • The Supply of Money, Money Market Equilibrium and the LM Curve • The Slope of the LM Curve • Shifts in the LM Curve • A Summary of the LM Curve • Equilibrium in the
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developing countries including Saudi Arabia, Nigeria and Venezuela, who pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations. It secures a steady income for its members while ensuring an efficient and reliable supply of petroleum to consuming nations and a fair return for investors in the petroleum industry. OPEC’s influence has been criticized since it became effective in determining production and
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to enhance the students’ understanding of basic microeconomic concepts and theories in order to equip them with the basic conceptual abilities and skills in economic problem solving. The theories will include the basic economic problem, supply and demand analysis, consumer behaviour, market structure, production and cost and market failure. LEARNING OBJECTIVES: The aims of this course are to enable students to: Apply basic theoretical microeconomic models as a framework for understanding the
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a decrease in the price of football tickets increases the total revenue of the athletic department, this is evidence that demand is: A) price inelastic. B) price elastic. C) unit elastic with respect to price. D) perfectly inelastic. 2. If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is: A) perfectly elastic. B) perfectly inelastic. C) elastic. D) inelastic. 3. Suppose the president of a textbook publisher
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person on a boneless equivalent basis” (para. 2). The writer will investigate the trends in consumption patterns, which include the utility derived from meat, changes in demand, market prices and the elasticity of demand for meat. Economics, the law of supply and demand, and discuss factors that lead to a change in supply and demand will also be discussed. Economics is defined by Merriam-Webster Online as “a social science concerned chiefly with description and analysis of the production, distribution
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Boston Cellular Corporation 1. The type of demand in a market such as this case, is elastic. Elastic demand is a type of demand that will rise or fall depending on the price of the good. Products that people don’t need to survive are usually of elastic demand. They also have several close substitutes and are sensitive to price changes. This was demonstrated when the new manager increased prices to customers in the firm’s service area, the demand for the cellular plans decreased. 2. I believe
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the profitability of this venture, their in-house consulting team estimated that the daily demand for Bagels in the area to be the following Q = -5P + 20Pp - 30Pc +5I Where P = the price of bagels, Pp = the price of pastries (each), Pc = the price of coffee (per cup), and I = Income (average annual per capita, for local residents in thousands of dollars) a. Comment on this estimated demand function. Are the parameters reasonable? Why or why not? (Restrict your commentary to the
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