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Assume that you are in 1970 in the USA and have been hired as a business consultant to help the top management of Fisher-Price Toys, Inc. to decide on the launching of the ATV Explorer.
1. Should the company launch or not launch the ATV Explorer? Explain why.
2. What price tag would you recommend for that product and what kind of measures would you also recommend to take, in order to pursue that price? Would the new product with the recommended price be sustainable in the long-run?
3. By the early 70's you realised the market for toys in the US is about to change. What strategies would you recommend for the future in terms of new products and prices in order to match supply with demand in a profitable manner?
Suppose the demand curves for the two market segments are: Out of town: Q0 = 600 - 10P Local: Q1 = 600 - 20P A. If the resort charges one price to all skiers, what is the profit-maximizing price Calculate how many lift tickets will be sold to each..
You are un the middle of a one-year rental contract for your factory that requires you to pay $ 500,000 per month, and you have contractual labor obligations of $ 1million per month that you can't get out of.
Assume an earning rate of 6% per year compounded monthly on your investments. How much must you place into your retirement plan monthly starting at the end of next month (month 1) and ending one month prior to the commencement of the retirement be..
Real GDP was $4,179 billion in year 1 and $4,848 billion in year 2. IN contrast, real GDP per capita in Year 1 was $19,261, but in year two it was only $19,162. Why did one measure increase while the other measure decreased
A student has a job that leaves her with $500 per month in disposable income. She decides that she will use the money to buy a car. Before looking for a car, she arranges a 100% loan whose terms are $500 per month for 36 months at 18% annual inter..
Jane has three years of college, Pam has two, and Mary has one. Jane earns $21 per hour, Pam earns $19, and Mary earns $16. The difference in educational attainment is due completely to different discount rates.
Suppose that the economy starts at equilibrium and the mpc = 0.8. What would be the effect of a 500 increase intaxes once all the rounds of the multiplier process are complete
Lenny's, a national restaurant chain, conducted a study of factors affecting demand. The following variables were defined and examined for a random sample of thirty of its restaurants:
Your state is trying to determine how many vanity license plate it will be able to sell at various prices. Regular license plates cost $20 and the state's per-capita income is $ 30,000.00 A survey of other state's with the sme population
There are two sectors of the construction industry that currently pay their employees the market-clearing wage. The demand for labor in each sector is MRPL = 12 - L,where L = the number (in thousands) of workers. The supply of labor in each sector..
The InterCell Company wants to participate in the upcoming World Fair. To participate, the firm needs to spend $1 million in year zero to develop a showcase. The showcase will produce a cash flow of $2.5 million at the end of year one.
Suppose worker productivity increased at the rate of 1.9% per year. If the labor force grew by 1.5% per year, what rate of increase in RGDP would be sustainable without increasing inflation pressures
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