New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
economics

Managerial Economics 12th edition Mark Hirschey - Solutions

Economists have long argued that if you want to tax away excess profits without affecting locative efficiency, you should use a lump-sum tax instead of an excise or sales tax. Use the concepts developed in the chapter to support this position.
"It is often impossible to obtain precise information about the pattern of future revenues, costs, and interest rates. Therefore, the process of economic optimization is futile." Discuss this statement.
In estimating regulatory benefits, the Environmental Protection Agency (EPA) and other government agencies typically assign a value of approximately $6 million to each life saved. What factors might the EPA consider in arriving at such a valuation? How would you respond to criticism directed at the
Profit versus Revenue Maximization. Presto Products, Inc., recently introduced an innovative new frozen dessert maker with the following revenue and cost relations:P = $60 - $0.005QTC = $88,000 + $5Q + $0.0005Q2MR = ∂TR/∂Q = $60 - $0.01QMC = ∂TC/∂Q = $5 + $0.001QA. Set up a spreadsheet for
Pharmed Caplets is an antibiotic product with monthly revenues and costs of:TR = $900Q - $0.1Q2 ……………………………… TC = $36,000 + $200Q + $0.4Q2MR = ∂TR/∂Q = $900 - $0.2Q ………………… MC = ∂TC/∂Q = $200 + $0.8QA. Set up a spreadsheet for output (Q),
A. Given the output (Q) and price (P) data in the following table, calculate total revenue (TR) and marginal revenue (MR):B. Graph these data using "dollars" on the vertical axis and "quantity" on the horizontal axis. At what output level is revenue maximized?C. Why is marginal revenue less than
A. Fill in the missing data for price (P), total revenue (TR), marginal revenue (MR), total cost (TC), marginal cost (MC), profit (Ï€), and marginal profit (Me) in the following table:B. At what output level is profit maximized?C. At what output level is revenue maximized?D. Discuss any
Characterize each of the following statements as true or false, and explain your answer.A. If marginal revenue is less than average revenue, the demand curve will be downward sloping.B. Profits will be maximized when total revenue equals total cost.C. Given a downward-sloping demand curve and
Meredith Grey is a regional sales representative for Dental Laboratories, Inc., a company that sells alloys created from gold, silver, platinum, and other precious metals to several dental laboratories in Washington, Oregon, and Idaho. Grey's goal is to maximize total monthly commission income,
Climate Control Devices, Inc., estimates that sales of defective thermostats cost the firm $50 each for replacement or repair. Boone Carlyle, an independent engineering consultant, has recommended hiring quality control inspectors so that defective thermostats can be identified and corrected before
The Portland Sea Dogs, the AA affiliate of the Boston Red Sox major league baseball team, have enjoyed a surge in popularity. During a recent home stand, suppose the club offered $5 off the $12 regular price of reserved seats, and sales spurted from 3,200 to 5,200 tickets per game.A. Derive the
21st Century Insurance offers mail-order automobile insurance to preferred risk drivers in the Los Angeles area. The company is the low-cost provider of insurance in this market but doesn't believe its annual premium of $1,500 can be raised for competitive reasons. Rates are expected to remain
The Denver Athlete's Club (DAC) is a private, not‑for‑profit athletic club located in Denver, Colorado. DAC currently has 3,500 members but is planning on a membership drive to increase this number significantly. An important issue facing John Blutarsky, DAC's administrative director,
Giant Screen TV, Inc., is a Miami-based importer and distributor of 60-inch screen HDTVs for residential and commercial customers. Revenue and cost relations are as follows:TR = $1,800Q - $0.006Q2MR = ∂TR/∂Q = $1,800 - $0.012QTC = $12,100,000 + $800Q + $0.004Q2MC = ∂TC/∂Q = $800 + $0.008QA.
Founded in 1985, Starbucks Corporation offers brewed coffees, espresso beverages, cold blended beverages, various complementary food items, and related products at over 12,000 retail outlets in the United States Canada, the United Kingdom, Thailand, Australia, Germany, China, Singapore, Puerto
A. Set up a table or spreadsheet for NPI's order quantity (Q), inventory-related total cost (TC), purchase price (P), use requirement (X), order cost (Θ), and carrying cost (C). Establish a range for Q from 0 to 2,000 in increments of 100 (i.e., 0, 100, 200, ..., 2,000).B. Based on the NPI table
Amos Jones and Andrew Brown own and operate Amos & Andy, Inc., a Minneapolis-based installer of conversion packages for vans manufactured by the major auto companies. Amos & Andy has fixed capital and labor expenses of $1.2 million per year, and variable materials expenses average $2,000
What key ingredients are necessary for the creation of economic demand?
Memory chip maker Micron Technology Inc. enjoys strong demand for its products from manufacturers of computers and intelligent electronics. Describe the difference between direct demand and derived demand.
The Ford Escape Hybrid is the first gas-electric hybrid SUV produced and sold in North America. How would Ford estimate the demand influence of growing environmental awareness by consumers?
The Energy Department estimates that domestic demand for natural gas will grow by more than 40% between now and 2025. Distinguish between a demand function and a demand curve. What is the difference between a change in the quantity demanded and a shift in the demand curve?
The United States is a big exporter of animal feeds, corn, meat, fruits, vegetables and other agricultural commodities. Explain how foreign trade affects the domestic supply of such products.
Distinguish between a supply function and a supply curve. What is the difference between a change in the quantity supplied and a shift in the supply curve?
“Dynamic rather than static demand and supply conditions are typically observed in real-world markets. Therefore, comparative statics analysis has only limited value.” Discuss this statement.
Contrast the supply and demand conditions for new Ph.D.’s in economics and accounting. Why do such large differences in starting salaries seem to persist over time?
Suppose the personal income tax was replaced with a national sales tax. How would this affect aggregate supply, aggregate demand and interest rates?
What key ingredients are necessary for the creation of economic supply?
The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminumQD = 317,500 - 10,000P(Demand)QS = 2,500 + 7,500P,(Supply)Where Q is quantity measured in pounds of scrap aluminum and P is price in cents.Complete the followingtable:
The following relations describe monthly demand and supply relations for dry cleaning services in the metropolitan area:QD = 500,000 - 50,000P(Demand)QS = -100,000 + 100,000P (Supply)Where Q is quantity measured by the number of items dry cleaned per month and P is average price in dollars.A. At
The demand for housing is often described as being highly cyclical and very sensitive to housing prices and interest rates. Given these characteristics, describe the effect of each of the following in terms of whether it would increase or decrease the quantity demanded or the demand for housing.
Demand and supply conditions in the market for unskilled labor are important concerns to business and government decision makers. Consider the case of a federally mandated minimum wage set above the equilibrium, or market clearing, wage level. Some of the following factors have the potential to
The Creative Publishing Company (CPC) is a coupon book publisher with markets in several southeastern states. CPC coupon books are sold directly to the public, sold through religious and other charitable organizations, or given away as promotional items. Operating experience during the past year
The Eastern Shuttle, Inc., is a regional airline providing shuttle service between New York and Washington, D.C. An analysis of the monthly demand for service has revealed the following demand relation:Q = 26,000 - 500P - 250POG + 200IB - 5,000S,where Q is quantity measured by the number of
A review of industry wide data for the jelly and jam manufacturing industry suggests the following industry supply function:Q = -59,000,000 + 500,000P - 125,000PL- 500,000PK + 2,000,000W,Where Q is cases supplied per year, P is the wholesale price per case ($), PL is the average price paid
Olympia Natural Resources, Inc., and Yakima Lumber, Ltd., supply cut logs (raw lumber) to lumber and paper mills located in the Cascades Mountain region in the state of Washington. Each company has a different marginal cost of production depending on its own cost of landowner access, labor and
Cornell Pharmaceutical, Inc., and Penn Medical, Ltd., supply generic drugs to treat a wide variety of illnesses. A major product for each company is a generic equivalent of an antibiotic used to treat postoperative infections. Proprietary cost and output information for each company
Eye-de-ho Potatoes is a product of the Coeur d’Alene Growers’ Association. Producers in the area are able to switch back and forth between potato and wheat production depending on market conditions. Similarly, consumers tend to regard potatoes and wheat (bread and bakery products) as
The following relations describe demand and supply conditions in the lumber/forest products industryQD = 80,000 - 20,000P(Demand)QS = -20,000 + 20,000P(Supply)Where Q is quantity measured in thousands of board feet (one square foot of lumber, one inch thick) and P is price in dollars.A. Set up a
Information Technology, Inc., is a supplier of math coprocessors (computer chips) used to speed the processing of data for analysis on personal computers. Based on an analysis of monthly cost and output data, the company has estimated the following relation between the marginal cost of production
A. Set up a spreadsheet to illustrate the effects of changing economic assumptions on the demand for Sun best orange juice. Use the demand function to calculate demand based on three different underlying assumptions concerning changes in the operating environment. First, assume that all demand
"The utility derived from consumption is intangible and unobservable. Therefore, the utility concept has no practical value.” Discuss this statement.
Is an increase in total utility or satisfaction following an increase in income consistent with the law of diminishing marginal utility?
Prospective car buyers are sometimes confronted by sales representatives who argue that they can offer a vehicle that is “just as good as a BMW, but at one-half the price.” Use the indifference concept to explain why the claims of the sales representative are not credible.
Following a price change for Diet Coke, explain how retailers use sales information to learn if Doritos snack chips represent a complement or substitute for Diet Coke.
During the past 40 years the average price of a new single-family home has risen by a factor of ten, making the cost of housing prohibitive for many Americans. Over the same time frame, however, the number of units sold per year has more than doubled. Are these data inconsistent with the idea of a
What would an upward-sloping demand curve imply about the marginal utility derived from consumption? Why aren't upward sloping demand curves observed in the real world?
How is a price-consumption curve related to a demand curve?
An estimated 80% increase in the retail price of cigarettes is necessary to cause a 30% drop in the number of cigarettes sold. Would such a price increase help or hurt tobacco industry profits? What would be the likely effect on industry profits if this price boost was simply caused by a $1.50 per
Individual consumer demand declines for inferior goods as personal income increases because consumers replace them with more desirable alternatives. Is an inverse relation between demand and national income likely for such products?
In the United States, high-wage workers shun public transit and drive cars to work. These same high-income individuals often support massive subsidies for public transit. Use the concept of revealed preference to explain the public demand for transportation. Can you explain this consumer behavior
Determine whether each of the following statements is true or false. Explain why.A. According to the theory of consumer behavior, more is always better.B. Consumers must understand how much one product is preferred over another in order to rank-order consumption alternatives.C. A market basket is a
Indicate whether each of the following statements is true or false. Explain why.A. The law of diminishing marginal utility states that as an individual increases consumption of a given product within a set period of time, the utility gained from consumption eventually declines.B. When prices are
Suggest briefly whether each of the following statements about indifference curves that show preferences between goods and services is true or false and defend your answer.A. Consumers prefer higher indifference curves that represent greater combinations of goods and services to lower indifference
Holding all else equal, indicate how each of the following changes would affect a budget constraint that limits consumption of goods (Y) and services (X). Explain your answer.A. Deflation that uniformly drops the price of all goods and services.B. Inflation that consistently increases the price of
The demand for personal computers can be characterized by the following point elasticity’s: price elasticity = 5, cross-price elasticity with software = 4, and income elasticity = 2.5. Indicate whether each of the following statements is true or false, and explain your answer.A. price reduction
In an effort to reduce excess end-of-the-model-year inventory, Harrison Ford offered a 1% discount off the average price of 4WD Escape Gas-Electric Hybrid SUVs sold during the month of August. Customer response was wildly enthusiastic, with unit sales rising by 10% over the previous month's
The South Beach Cafe recently reduced appetizer prices from $12 to $10 for afternoon “early bird” customers and enjoyed a resulting increase in sales from 90 to 150 orders per day. Beverage sales also increased from 300 to 600 units per day.A. Calculate the arc price elasticity of demand for
Ironsides Industries, Inc., is a leading manufacturer of tufted carpeting under the Ironsides brand. Demand for Ironsides products is closely tied to the overall pace of building and remodeling activity and, therefore, is highly sensitive to changes in national income. The carpet manufacturing
B. B. Lean is a catalog retailer of a wide variety of sporting goods and recreational products. Although the market response to the company's spring catalog was generally good, sales of B. B. Lean's $140 deluxe garment bag declined from 10,000 to 4,800 units. During this period, a competitor
Enchantment Cosmetics, Inc., offers a line of cosmetic and perfume products marketed through leading department stores. Product Manager Erica Kane recently raised the suggested retail price on a popular line of mascara products from $9 to $12 following increases in the costs of labor and
Alex P. Keaton is an ardent baseball fan. The following table shows the relation between the number of games he attends per month during the season and the total utility he derives from baseball game consumption:Number of Baseball Games per Month .. Total Utility0 .............. 01 .............
Distinctive Designs, Inc., imports and distributes dress and sports watches. At the end of the company's fiscal year, brand manager Charlie Pace has asked you to evaluate sales of the sports watch line using the following data:In particular, Pace has asked you to estimate relevant demand
A. Set up a table or spreadsheet for CSI, that illustrates the relationships among quantity (Q), price (P), the optimal level of advertising (A), the advertising-sales ratio (A/S), and sales revenue (S). In this spreadsheet, use formula functions to setQ = 5,000 10P + 40A + PA 0.8A2 0.5P2A =
Describe some of the limitations of market experiments.
“When I go to the grocery store, I find cents-off coupons totally annoying. Why can’t they just cut the price and do away with the clutter?” Discuss this statement and explain why coupon promotions are an effective means of promotion for grocery retailers, and popular with many consumers.
Explain how shifting demand and supply curves make market demand estimation difficult.
“Rapid innovation in the development, assembly, and delivery of personal computers has led to a sharply downward sloping market demand curve for Dell, Inc.” Discuss this statement.
“Demand for higher education is highest among the wealthy. This has led to an upward sloping demand curve for college education. The higher the tuition charged, the greater is demand.” Discuss this statement.
How do linear and log-linear models differ in terms of their assumptions about the nature of demand elasticity’s?
If a regression model estimate of total profit is $50,000 with a standard error of the estimate of $25,000, what is the chance of an actual loss?
A simple regression TR = a + by is not able to explain 19 percent of the variation in total revenue. What is the coefficient of correlation between TR and Q?
In a regression-based estimate of a demand function, the beta coefficient for advertising equals 3.75 with a standard deviation of 1.25 units. What is the range within which there can be 99 percent confidence that the actual parameter for advertising can be found?
Managers often study the profit margin-sales relation over the life cycle of individual products, rather than the more direct profit-sales relation. In addition to the economic reasons for doing so, are there statistical advantages as well? (Note: Profit margin equals profit divided by sales.)
To ensure a big fan turnout for a traditional rival, suppose the Arizona State Sun Devils offer one-half off the $16 regular price of reserved seats for a women’s basketball game, and sales jumped from 1,750 to 2,750 tickets.A. Calculate ticket revenues at each price level. Did the pricing
The use of regression analysis for demand estimation can be further illustrated by expanding the Electronic Data Processing (EDP), Inc., example described in the chapter. Assume that the link between units sold and personal selling expenditures described in the chapter gives only a partial view of
Identify each of the following statements as true or false and explain why.A. The effect of a $1 change in price is constant, but the elasticity of demand will vary along a linear demand curve.B. In practice, price and quantity tend to be individually rather than simultaneously determined.C. A
Identify each of the following statements as true or false and explain why:A. A parameter is a population characteristic that is estimated by a coefficient derived from a sample of data.B. A one-tail t test is used to indicate whether the independent variables as a group explain a significant share
The Best Buy Company, Inc., is a leading specialty retailer of consumer electronics, personal computers, entertainment software and appliances. The Company operates retail stores and commercial Web sites, the best known of which is bestbuy.com. Recently, this site offered a Home Theater unit with a
On weekends during summer months, Eric Cart man rents jet skis at the beach on an hourly basis. Last week, Cart man rented jet skis for 20 hours per day at a rate of $50 per hour. This week, rentals fell to 15 hours per day when Cart man raised the price to $55 per hour.Using these two price-output
Xerox Corporation develops manufactures, and services document equipment and software solutions worldwide. Assume the company offered $75 off the $1,475 regular price on the Phaser 6360, a durable high-speed color copier, and Internet sales jumped from 700 to 800 units per week (see
Kenny McCormick manages a 100-unit apartment building and knows from experience that all units will be occupied if rent is $900 per month. McCormick also knows that, on average, one additional unit will go unoccupied for each $10 increase in the monthly rental rate.A. Estimate the apartment rental
Gregory House, a Philadelphia-based management consultant, has been asked to calculate and analyze market demand for a new video game that is to be marketed to retail (R) and wholesale (W) customers over the Internet.The client estimates fixed costs of $750,000 per year for the product, and that
Business is booming for Consulting Services, Inc. (CSI), a local supplier of computer set-up consulting services. The company can profitably employ technicians as quickly as they can be trained. The average hourly rate billed by CSI for trained technician services and the number of billable hours
Colorful Tile, Inc., is a rapidly growing chain of ceramic tile outlets that caters to the do-it-yourself home remodeling market. In 2007, 33 stores were operated in small to medium-size metropolitan markets. An in-house study of sales by these outlets revealed the following (standard
Getaway Tours, Inc., has estimated the following multiplicative demand function for packaged holiday tours in the East Lansing, Michigan, market using quarterly data covering the past four years (16 observations):R2 = 80%, Standard Error of the Estimate = 20Here, By is the quantity of tours sold,
A. Describe the economic meaning and statistical significance of each individual independent variable included in the Mrs. Smyth's frozen fruit pie demand equation.B. Interpret the coefficient of determination (R2) for the Mrs. Smyth's frozen fruit pie demand equation.C. Use the regression model
Discuss some of the microeconomic and macroeconomic factors a firm must consider in its own sales and profit forecasting.
Forecasting the success of new product introductions is notoriously difficult. Describe some of the macroeconomic and microeconomic factors that a firm might consider in forecasting sales for a new teeth whitening product.
Blue Chip Financial Forecasts gives the latest prevailing opinion about the future direction of the economy. Survey participants include 50 business economists from Deutsche Banc Alex Brown, Banc of America Securities, Fannie Mae, and other prominent corporations. Each prediction is published along
"Interest rates were expected to increase by 85% of all consumers in the May 2004 survey, more than ever before," said Richard Curtin, the Director of the University of Michigan’s Surveys of Consumers.’ “More consumers in the May 2004 survey cited the advantage of obtaining a mortgage in
Explain why revenue and profit data reported by shippers such as FedEx Corp. and United Parcel Service Inc. can provide useful information about trends in the overall economy.
In prepared remarks before Congress in mid-2007, Federal Reserve Chairman Ben Bernanke testified: "The principal source of the slowdown in economic growth . has been the substantial correction in the housing market.`[and] The near-term prospects for the housing market remain uncertain.” What
Perhaps the most famous early econometric forecasting firm was Wharton Economic Forecasting Associates (WEFA), founded by Nobel Prize winner Lawrence Klein. A spin-off of the Wharton School of the University of Pennsylvania, where Klein taught, WEFA was merged with Data Resources Inc. in 2001 to
Cite some examples of forecasting problems that might be addressed using regression analysis of complex multiple-equation systems of economic relations.
Would a linear regression model of the advertising/sales relation be appropriate for forecasting the advertising levels at which threshold or saturation effects become prevalent? Explain.
What are the main characteristics of accurate forecasts?
Gross Domestic Product (GDP) is a measure of overall activity in the economy. It is defined as the value at the final point of sale of all goods and services produced during a given period by both domestic and foreign-owned enterprises. GDP data for the 1950-2004 period shown in Figure 6.3 offer
Branded Products, Inc., based in Oakland, California, is a leading producer and marketer of household laundry detergent and bleach products. About a year ago, Branded Products rolled out its new Super Detergent in 30 regional markets following its success in test markets. This isn't just a
The U.S. Bureau of the Census publishes employment statistics and demand forecasts for various occupations.A. Using a spreadsheet or hand-held calculator, calculate the ten-year growth rate forecast using the constant growth model with annual compounding, and the constant growth model with
Almost 2 million persons per year visit wondrous Glacier National Park. Due to the weather, monthly park attendance figures varied widely during a recent year:A. Notice that park attendance is lower in December than in January, despite a 42.4% average rate of growth in monthly attendance. How is

Showing 9400 - 9500 of 28054

First
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved