ANSWER THE FOLLOWING QUESTIONS. USE GRAPH(S), TABLE(S), THEORIES AND EXAMPLES TO SUPPORT YOUR ANSWERS. 1. Julivee Cinema is the only movie theater in Subic Bay Philippines. The nearest rival movie theater, The Kolotski Twin is 35 miles away in Subic. Thus, Juvilee Cinema possesses a degree of market power. Despite having market power, Julivee Cinema is currently suffering losses. In a conversation with the owners of Julivee, the manager of the movie theater made the following suggestions: “
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Alejandro Bahena ECON 545 – 10388 Business Economics Microeconomics Analysis September 21, 2014 Introduction The demand for physicians and health care services in the United States is determine by the quantity the public is willing to pay for the lowest price in order to benefit from their services. Several factors affect the demand for physicians. The needs and size of the population, economic hardships and the high prices they are faced to pay. The technological constrains related to the
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The returns to scale in the production function Y = K0.5L0.5 are: constant If a production function has two inputs and exhibits constant returns to scale, then doubling both inputs will cause the output to: double If the supplies of capital and labor are fixed and technology is unchanging, then real output is: fixed If a production function has the property of diminishing marginal product, then doubling: one of the inputs will reduce its marginal product. Consider the following production
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impacts of economic models on my personal life. Before learning about microeconomic concepts, I always thought that a course in the field of Economics, would teach me theories that only apply to the economy of a nation as a whole and not to an individual’s life. However, there were a lot of concepts throughout this course that I found relative to my personal life. Among all the concepts that I have learned in the Microeconomics course, “Opportunity Cost”, “Sunk Cost”, and “Supply and Demand” have
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Midterm Exam Jan 2006 GM545 Microeconomics Instructions: --You are to answer one question from each section of the exam. --Please indicate the question selected on your answer sheets --Please return your answers by 6:00 pm Sunday, Jan 29th --The exam is to be completed solely by the student without assistance from anyone else. --Send your answers to my email address: lpatille@etaconsultants.com or place them in the Drop Box Section I: Answer one of the following questions in this section
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Name ECO/561 Date Professor Selected good: Vegetable and fruit mix based ice cream for Unilever’s “Heartbrand” Introduction Frozen dessert, particularly ice cream, is one of the most prominent sectors of production due to its wide market scope and popularity. However, it is threatened by the increasing concern for healthy diets due to its fat, calorie, and sugar content. As a result, the demand for a healthier version of ice cream with retained or even improved sensory properties arises
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Q1 Answer: For the economic rationale, first, the attraction of Orange was its spectacular growth of CAGR of 115% over 1994-1998, the fastest growth rate among all UK operators and the third largest wireless operator in UK. Thus from the acquisition, Mannesmann could achieve high inorganic growth in UK markets, which suits Mannesmann’s business strategy to become a leading telecommunication company focused on European market. Second, Orange adopts aggressive market mobile services strategy, as
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Question 1 – Calculation Question a) Firm A Q | TC | TVC | TFC | AC | MC | AVC | 1 | 18 | 8 | 10 | 18 | 8 | 8 | 2 | 30 | 20 | 10 | 15 | 12 | 10 | 3 | 46 | 36 | 10 | 15.30 | 16 | 12 | 4 | 66 | 56 | 10 | 16.50 | 20 | 14 | 5 | 90 | 80 | 10 | 18 | 24 | 16 | 6 | 118 | 108 | 10 | 19.70 | 28 | 18 | b) Firm B Q | TC | TVC | TFC | AC | MC | AVC | 1 | 20 | 10 | 10 | 20 | 10 | 10 | 2 | 36 | 26 | 10 | 18 | 16 | 13 | 3 | 55 | 45 | 10 | 18.30 | 19 | 15 | 4 | 82 | 72 | 10 | 20
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8.c. The Calculus of Profit-Maximization by a Competitive Firm Any profit-maximizing firm chooses inputs and outputs to maximize economic profits. By definition, maximization of economic profits entails maximization of the difference between the firm's total revenue and its total cost. • A firm's total revenue is defined as the quantity, Q, sold at a price, P(q): TR(q) = P(q) ∙ Q • A firm's total costs are defined as the quantity of capital, K, used multiplied
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Which of the following products can be sold through mass advertising? Answer Selected Answer: A new brand of baby diapers Correct Answer: A new brand of baby diapers Which of the following products should be sold face-to-face rather than by mass advertising? Answer Selected Answer: A pharmaceutical which can only be understood by doctors Correct Answer: A pharmaceutical which can only be understood by doctors Which of the following is considered to be a cost
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