Create a Hot Dog Proposal ECO 561 Create a Hot Dog Proposal Starting a business is not easy. It is important to know about the economy, supply, and demand. Elasticity of demand and the market structure are vital to the businesses success. Is the business a monopoly, monopolistically competitve, or oligopoly? Angie, the owner of Create a Hot Dog started her business with a vision that became a success. Create a Hot Dog was established in 2004 by owner Angie Smith
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Final Business Proposal Paper Alison Rogers ECO/561 May 3, 2011 Dr. Jerry King Final Business Proposal Executive Summary I spent some time looking for a service that I can offer to clients from the comforts of my home and still earn a decent income to support my family. After a while, I came across the real estate note business. To understand this paper, let me explain what a real estate note is. A real estate note is a promise to pay. What you and I consider a mortgage or IOU
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Ch6 DQ.2(a). What are qualitative forecasts? What are the most important forms of qualitative forecasts? Qualitative forecasts are used as supplements for quantitative forecasts when the future conditions of consumer tastes or business expectation changes are anticipated and when quantitative forecast data is not available. Qualitative forecasts are invaluable when forecasting demand for a product that the firm intends to introduce in the market. The most important forms of qualitative forecasts
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Price, Q as total quantity of output ( billion ), Q₁ as the output quantity of Samsung Electronics, Q₂ as the output quantity of Apple Incorporated MC₁ as the marginal cost of Samsung Electronics MC₂ as the marginal cost of Apple Incorporated MC₁= MC₂ =464 dollars MR₁ as the marginal revenue of Samsung Electronics MR₂ as the marginal revenue of Apple Incorporated P=1000-6Q According to: Samsung Electronics’ action curve: MC₁=MR₁ P=1000-6Q Q=Q₁+Q₂ We can get Total Revenue for Samsung Electronics:
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Cost of Debt 24% 24% Cost of Debt AP Cost of Default BGY Cost of Debt: 1989-1996 18% BGY Cost of Debt AP Cost of Default 18% BGY Cost of Debt: 1980-1986 BGY Cost of Debt: 1998-2007 % of Firm Value 12% % of Firm Value AAA AA A BBB BB B 12% 6% 6% 0% 0% AAA AA A BBB BB B Credit Rating Credit Rating Barnes & Noble, 2006 y = MB,MC 0.8 Marginal Cost of Debt Curve 0.6 Cost if Barnes & Noble were to use too little debt Cost if Barnes
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(B) | Increase | Increase | (C) | Increase | No change | (D) | Decrease | Increase | (E) | Decrease | No change | 5. Short-run marginal costs eventually increase because of the effects of (A) increasing marginal product (B) diminishing marginal product (C) diseconomies of scale (D) economies of scale (E) increasing fixed costs 6. If a government eliminated an effective price floor in a market, all of the following would occur EXCEPT: (A) The surplus would
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1. A firm has market power if it can a. maximize profits. b. minimize costs. c. influence the market price of the good it sells. d. hire as many workers as it needs at the prevailing wage rate. ANS: C PTS: 1 DIF: 1 REF: 14-0 NAT: Analytic LOC: Perfect competition TOP: Market power MSC: Definitional 2. A book store that has market power can a. influence the market price for the books it sells. b. minimize costs more efficiently than its competitors. c. reduce its advertising budget
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manufacturing cost of the product is driven by the recurring cost of procuring the materials to fabricate it. For example, printed wiglets are manufactured to be dominated by material costs. (1) do something with the marginal benefits > meaning marginal costs of doing it. (2) start doing something when the marginal benefits = marginal cost of doing it. (3) never do something when the marginal benefits < marginal costs of doing it. It can be easy wrongly conclude that marginal cost and total
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of differentiated oligopoly. - Oil and telecommunication (Globe, Smart, Sun Cellular) companies are examples of firms operating in an oligopolistic environment. Demand Curve KINKED DEMAND CURVE If the assumptions hold then: • The firm's marginal revenue curve is discontinuous (or rather, not differentiable), and has a gap at the kink • For prices above the prevailing price the curve is relatively elastic • For prices below the point the curve is relatively inelastic Price war
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large fixed and sunk costs, and significant economies of scope. Two important examples of such industries are telecommunications services and information services. In each of these cases the relevant technologies involve high fixed costs, significant joint costs and low, or even zero, marginal costs. Setting prices equal to marginal cost will generally not recoup sufficient revenue to cover the fixed costs and the standard economic recommendation of "price at marginal cost" is not economically viable
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