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Managerial economy assignment
BOTH DISCUSSIONS ARE DUE TOMORROW THURSDAY SEP 22ND 2016 AT 3PM
NO APA NEEDED
1) Today we see a lot of activity within the international trade arena as the U.S. trade deficit has soared to a record high.
• Trade is designed to create bigger market opportunities, so why is the balance of trade so out of balance for the U.S.?
• Is it bad to have a trade deficit, or does it not matter?
2) Using the information you have learned so far in this class, state what you think will cause market fluctuations over the next few years as the economy struggles to recover.
What areas of the economy should be closely watched as indicators of future activity?
Some games of strategy are cooperative. One example is deciding which side of road to drive on. It does not matter which side it is as long as everyone chooses similar side.
Suppose Dell is currently selling 250,000 Pentium 4 laptops permonth. A manager at Dell argues, "The last 10,000 laptops weproduced increased our revenue by $8.5 million and our costs by$8.9 million
How society manages its scarce resources and benefits from economic interdependence? Why the demand curve slopes downward and the supply curve slopes upward? Where is the point of equilibrium and what does it determine?
Insurance companies have to generate enough revenue to cover their costs and make a normal profit-otherwise. Why would a person ever buy insurance, knowing that the price is greater than the expected payout?
Watch the videos about the Phaeton VW Assembly plant. (This is several years old, so don't research what actually happened to answer the questions. Try to answer the questions just from studying the videos, thinking about what you already know, ..
Do you agree that the firm is necessarily wasting company profits? Explain using concepts from class. In answering this question assume that employees would be more productive if they stayed at the client's office.
Within a few weeks, he set up a task force of managers to deal with the problem. And within a few months, they reduced the amount of scrap to $7000 worth [per year]." Was this necessarily an economically efficient move?
An entrepreneur quits his job as a banker and invests $100,000 of his savings in a new business venture that he will manage. Discuss the two most obvious opportunity costs that he will incur from this decision.
The following questions refer to a company, whose manager recently estimated its average variable cost function to be;
Given the data, please construct the demand estimation for soft drink consumption in the United States by a multiple-linear regression equation, and a log-linear (exponential) regression equation.
If you bet $5 that the next roll of the dice will be 2, you will collect $155 (including your $5 bet) if you win. First identify the net profit, then find the payoff odds.
Your company currently has a bonus plan for its sales managers. Discuss the potential benefits and costs of the new plan relative to the old plan.
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