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You are a division manager at Toyota. If your marketing department estimates that the semiannual demand for Highlander is Q = 80,000 −1.2P, what price should you charge in order to maximize revenue from sales of the Highlander?
A fund has an alpha of 0.73 percent and a tracking error of 4.9 percent. What is the fund's information ratio?
How to interpret estimated coefficient and How to count tendency ratio between one category of certain independent to or category.
The firms cost functions are given by the following functional form: C(qi)=ciqi, where i=1,2. Under this functional form, the firms marginal cost equals its average cost. Discuss each firm’s best-response function when the firms compete by choosing p..
What is the equilibrium income level and interest rate. Suppose there is an increase in t from .15 to .20. What will be the change in the equilibrium level of income and interest rate? Suppose there is a decrease in government expenditures (G) from 1..
Why the number of tools (instruments) has to be less than or equal to the number of economic objectives (goals).
For each of the following decisions determine whether the manager is in a short-run or long-run situation.
Suppose that price of capital is $1 and price of labor is $2 and total outlay is $16. Write the equation for the iso-cost line and plot it on the same graph with the iso-quants.
A new Taurus bought in 1994 cost $18,680 and it could have been sold as used in 1995 for $12,600.
As we noted in class, most members of labor unions work in the public sector, industries that are regulated, or industries in which production is concentrated into a few firms. Consider a perfectly competitive industry with many firms that produce th..
Describe who else you will talk to in order to set the sales assumption forecast. How will you document this? How is the sales budget used to build the other budgets? Who is responsible and what standards for negotiations should be set during budge..
An important implication of the permanent-income hypothesis is that fiscal policy operates with a lag.
Suppose that a certain country has an MPC of 0.9 and a real GDP of $400 billion. If its investment spending decreases by $4 billion, what will be its new level of real GDP?
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