AHRAM CANADIAN UNIVERSITY (ACU) FINAL EXAM SCHOOL OF BUSINESS ADMINSTRATION MANAGERIAL ECON. FEBRUARY 9TH , 2007 TIME: 2 HOURS ___________________________________________________________________ Part (I): Answer 2 of the Following Questions: - (15 Points) 1- Which of the following forecasting methods are appropriate for predicting business cycles? a- Trend projections
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Problem Set 9 (75 points) 1. A student argues, "If a monopolist finds a way of producing a good at lower cost, he will not lower his price. Because he is a monopolist, he will keep the price and the quantity the same and just increase his profit." Do you agree? Use a graph to illustrate your answer. The argument is incorrect. As the graph shows, a reduction in marginal cost will cause a monopolist to reduce his price. 2. Economist Harvey Leibenstein argued that the loss of economic efficiency
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in motorcycle crashes has been rising. The producers advertise their helmets as “effective,” but some helmets withstand most falls and others are produced with materials that are more likely to crack in commonly experienced falls. The weaker helmets cost about $8 less to produce. There is no simple way for consumers to determine helmet safety. a) This is a case of market failure caused by externalities emanating from some production agents of the helmets producing lower quality hence weaker helmets
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Teaching the Costs of Uncoordinated ; Supply Chains Charles L. Munson • Jianli Hu College of Business and Economics, Washington State University, PO Box 644736, Pullman, Washington 99164-4736 munson@'ivsu.edu • hu@mail.wsu.edu , Meir J. Rosenblatt (deceased) formerly Professor at Washington University in St. Louis, Missouri, and Technion—Israel Institute of Technology This paper was refereed. Supply-chain management has become a prominent area for teaching and research. Academics and managers
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of microprocessors sold per year. Suppose you know nothing about Intel’s costs of production. Assuming that Intel acts as a profit-maximizing monopolist, would it ever sell 7 million microprocessors in Brazil in 2005? If demand is P 9 Q , then MR 9 2Q . If the firm sets Q 7 , then MR 5 . At this point, if the firm lowered its output it would increase total revenue, and with the lower level of output total cost would fall. Thus, decreasing output would increase profit. Therefore, a
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A) If the indifference curve is steep, the marginal rate of substitution is high. B) A low marginal rate of substitution implies a flat indifference curve. C) A flat indifference curve implies a consumer must receive a large amount of good X to compensate for a small decrease in good Y. D) A high marginal rate of substitution implies a consumer must receive a large amount of good X to compensate for a small decrease in good Y. E) A high marginal rate of substitution implies a consumer must
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False? 6. Cost–benefit analysis (CBA) is a set of techniques for assisting in the making of decisions that translates all relevant concerns into market (dollar) terms. True or False? 7. The appropriate measure of economic cost is opportunity cost. True or False? 8. How much has to be paid for treatment, and how much the treatment is worth, depends on whose perspective a cost–benefit analysis of health care is taking. True or False? 9. The chance that you might become injured or sick is a cost, as is
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decision include principle number two the cost of something is what you give up to get it, and principle number three rational people think at the margin. In this essay, I will discuss each principal and the roles they play in the decision to buy a house. Furthermore, I will explain how these principals influence the marginal benefits and marginal costs associated with the decision to purchase a home (Mankiw, 2007). The role of principal number two the cost of something is what you give up to get
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people face trade-offs. The trade-off would be the cost difference between a home and a rental. Assuming the payment for a studio apartment is substantially reduced compared to a house payment. In addition to an increased house payment there are additional costs to consider as well for instance; electric, gas, water, property tax and homeowners insurance, things that could be included in the cost of a residence that is rented. Principle two: the cost of something is what you give up to get it. I have
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you characterize demand variability, seasonality, trend and term? How can you characterize the product? What kind of SC management approach would you associate with such a product and demand pattern? What happens with unmet demand? Which costs are most significant for Reebok? Reebok heeft een exclusieve licentie voor het maken en produceren van de NFL licensed kleding, zoals de shirts die de spelers op het veld dragen, de kleding die buiten het veld wordt gedragen, schoenen en de NFL-branded
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