Microeconomics Essays & Research Papers

Microeconomics (from Greek prefix mikro- meaning "small" and economics) is a branch of economics that studies the behavior of individuals and small impacting players in making decisions on the allocation of limited resources (see scarcity).[1] Typically, it applies to markets where goods or services are bought and sold. Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the...

(i) Collusion is common among oligopoly firms. Discuss the factors that make collusion likely to succeed. Use the relevant industry to support your answer. Oligopolistic firms are known to be independent as there are only a few sellers dominating the market; therefore changes in the price, sales or output of a firm will surely affect their competitors. The telecommunication industry in Malaysia exhibits the oligopoly market. For instance, Maxis or Digi customers are more likely to subscribe to...

AMITY INTERNATIONAL BUSINESS SCHOOL MICRO ECONOMICS & APPLICATIONS Course Code: IIBEN 10102 Programme Name: BBA (IB)/ 3C BBA/ IMBA Classroom contact hours: 30 hours Credit Units: 03 Self Study hours:80 hours Faculty: Assist Prof Richa Goel Research and Field Surveys : 20 hours Course Objective The Principal objective of this course is to equip the students with the very basics of Micro Economics. The course will develop a high level of understanding...

3rd Edition, June 2005 Eric Doviak Principles of Microeconomics on the Lecture Notes Preface Microeconomics is the study of the behavior of individual households, firms and industries as well as the supply and demand relationships between producers and consumers. You might think of a household as a consumer, but households are also producers. For example, take a look at your kitchen: you take raw materials (meat, cheese, vegetables, eggs, salt and pepper) as well as capital...

Until the so-called Keynesian revolution of the late 1930s and 1940s, the two main parts of economic theory were typically labeled “monetary theory” and “price theory.” Today, the corresponding dichotomy is between “macroeconomics” and “microeconomics.” The motivating force for the change came from the macro side, with modern macroeconomics being far more explicit than old-fashioned monetary theory about fluctuations in income and employment (as well as the price level). In contrast, no...

Fundamentals of Microeconomics In the world today product and services are both key to the survival of mankind. Depending on the demand from consumers, companies will see an increase or decrease of the items they produce or the service rendered. In the article of trends in US gasoline and ethanol use and petroleum production and imports these items will be looked at; as well as a discussion of the fundamentals of microeconomics. First, in order to understand what the fundamentals of...

Running head: Module 1 Homework Module 1 Homework Michael J Feller Allied American University Author Note This paper was prepared for ECN 150: Introduction to Microeconomics, Module 1 Homework taught by Dr. Dani Babb. PART I Directions: Please draft a three page long document in APA format in which you address the questions below. You must cite at least three scholarly sources within the context of your work and cite your references according to...

ES2550 Microeconomics - OL2-MAR1813 Project Part 1 [Author name] [Date]   Barnes & Noble books which Estimated Elasticity is -4.00 which I believe is elastic because it has a value greater than 1 decrease in quantity demanded is proportionally greater than the increase in price. Coca-Cola which Estimated Elasticity is -1.22 I believe is elastic because it has a greater then 1 Cigarettes which Estimated Elasticity is -0.25 I believe is inelastic because it has less than 1 in...

According to the principles of microeconomics market structures can be identified as perfect competition, oligopoly or monopoly. In our society today and the way business is conducted, market structures are not strictly defined by on of these particular types. They can be composed of a mix of them. A market structure that has a higher level of competition can be more efficient than those that have lower levels of competition. We know this since lower competition increases the producer’s surplus;...

Price discrimination Price discrimination is the practice of selling the same product at different prices to different customers, when there is no difference in the cost to produce the product. Price discrimination is done to maximize profits. This occurs when market prices are set differently to different buyers, according to the willingness of each buyer to pay (demand curve) rather than setting a uniform price. It can be seen in the image below how if the seller kept the uniform price of...

Main Factors affecting product pricing in the UK In the UK, there are factors which affect how a company chooses to price their products. This is known as product pricing. Having a good product pricing strategy is essential to maintain a high profit margin, creating brand loyalty or superiority and remaining competitive. We will discuss the factors affecting product pricing, to see why it is so important for firms to take into different factors and variables when deciding their product price....

BECN 150- ONM: Assignment No. 1 – (5%) – Due Monday, Jan. 27, 2015 Clearly show all Steps and Explanations, 80 Marks (5 marks included for quality) Upload this document and type your answers directly below each question. 1. Difference Between microeconomics and macroeconomics. Identify each of the following topics as being part of microeconomics or macroeconomics, and state your reason why: 20 Marks (2 Marks each) a. the impact of an increase in consumer income on the...

Perfect Competition of Wheat Crops and Variable Cost Basic theme Farmers gamble on deciding what crop to grow from year to year because variable costs can make it difficult for a farmer to break even and make profit. Critical Review Farmers who decided to grow wheat crops in winter are predicted to see profit this spring based on the estimated costs. Farmers have to almost blindly decide on which crop might be most profitable for them to grow because their total variable costs are always...

Market Structure | NumberofSellers | TypeofProduct | BarrierstoEntry? | DemandCurve | Profit Maximization Condition | Perfect Competition | Many | Homogenous | No | Horizontal (perfectly elastic) | MR = MC | Monopoly | One | Unique | Yes | Downward Sloping | MR = MC | Monopolistic Competition | Many | Differentiated | No | Downward Sloping | MR = MC | Oligopoly | Few | Homogenous or Differentiated | Yes | Downward Sloping | MR = MC | The natural monopoly may be regulated through...

ECNOMICS: Economics is the social science that analyzes the production, distribution, and consumption of goods and services. Different economists has given different definations of economics. The philosopher Adam Smith (1776) defines the subject as "an inquiry into the nature and causes of the wealth of nations. According to Alfred Marshall Economics is a study of man in the ordinary business of life. It enquires how he gets his income and how he uses it. Thus, it is on the one side, the...

According to Kay (2010) a microeconomist speaks about what causes the price of particular products to fluctuate. On the other hand, a macroeconomists talks about things like inflation, what the target interest rate should be, what influences employment and unemployment (Kay, 2010). Microeconomics studies the decision of consumers and firms with respect to allocation of resources of goods and services. Consumers makes consumption decisions and firms make production decisions....

Reading: Microeconomics of Customer Relationships   Reading: Microeconomics of Customer Relationships The follow is a critique and review of the reading of Microeconomic of Customer Relationships by Fred Reichheld. I will review the article and evaluate Mr. Reachheld. I will also apply economic theories into why and how I came to my conclusions. Overview on the Reading Microeconomic of Customer Relationships by Fred Reichheld is based on a simple survey based customer-relationship...

UNIT 3 Microeconomics MULTIPLE-CHOICE SAMPLE QUESTIONS Sample Multiple-Choice Questions Circletheletterofeachcorrectanswer. 1. True statements about the theory of the firm in the short run and long run include which of the following? I. All input costs are fixed in the short run. II. All input costs are variable in the long run. III. At least one input price is fixed in the short run. (A) I only (B) II only (C) III only (D) I and II only (E) II and III only 3....

CHAPTER Perfect Competition 11 After studying this chapter you will be able to !  Define perfect competition !  Explain how firms make their supply decisions and why they sometimes shut down temporarily and lay off workers !  Explain how price and output in an industry are determined and why firms enter and leave the industry !  Predict the effects of a change in demand and of a technological advance !  Explain why perfect competition is efficient The Busy Bee The busy...

PRINCIPLES OF ECONOMIC (DIFFERENCE BETWEEN MICROECONOMICS AND MACROECONOMICS) CERTIFICATE IN ESTATE AGENCY (CEA) HAFIFI BINTI HAMDAN 940113-10-5504 LECTURER: MRS. NORZIHA BINTI ISMAIL DIFFERENCE BETWEEN MICROECONOMICS AND MACROECONOMICS The study of economics is divided into microeconomics and macroeconomics by the modern economists. Both of them discuss the economic activities but are used in different sectors under different circumstances. In spite of having some similarities,...

Unit 1 Assignment 2 A Summary of Reichheld’s journal article “The Microeconomics of Customer Relationships” Michael G. Castro Capella Univeristy MBA6008 – Global Economic Environment Professor Hidsell January 10, 2013 Customer Relationship Management is a way of creating and evolving your organization in the market place and at the same time in the mind of each individual customer. Customer expectations such as product quality, service responsiveness, price stability and the...

Essential Graphs for Microeconomics Basic Economic Concepts ( Production Possibilities Curve Nature & Functions of Product Markets ( Demand and Supply: Market clearing equilibrium (Floors and Ceilings (Consumer and Producer Surplus (Effect of Taxes Theory of the Firm (Short Run Cost (Long Run Cost...

Competition is essential to achieve efficiency in any market. In an imperfectly competitive market structure, however, efficiency is lost. The Economist’s article “Let Mexico’s Moguls Battle”, describes the lack of competition in the fixed and mobile phone markets in Mexico, shows its effects on consumers, and outlines the measures taken to promote competition. Figure 1 Figure 1 Telmex and Telcel abuse the lack of competition in the Mexican fixed and mobile phone markets respectively. These...

Chapter 9 1. All firms, no matter what type of firm structure they are producing in, make their production decisions based on where: marginal revenue equals marginal costs. 2. According to the table below, when profits are maximized, profits are equal to: $2. 3. Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm discovers a technology that makes their wheat taste better and have fewer calories than all other...

Explain briefly how macroeconomics is different from microeconomics. Please give examples. What is economics? Before we start to learn about economics, we have to understand that what is the different between macroeconomics and microeconomics. Macroeconomics and microeconomics are the main branches of economics. (Karl E. Case, Ray C. Fair and Sharon M. Oster (2012): Principles of Economics, 10th ed. Global Edition, Chapter 1). And, I will describe that with examples. Microeconomics seems...

ECON 545 Microeconomic analysis KELLER GRADUATE SCHOOL OF MANAGEMENT Project 1 Situation A My situation has to do with my niece Jenny. Jenny is a super intelligent high-school student who wants to make intelligent choices about her future so she’s decided to call upon me for advice in regard to possibly pursuing a career as a doctor and on the best location to practice medicine. She got wind that I am currently taking a business course in economics and...

 Concentration Ratios ECO204: Principles of Microeconomics Name Instructor: XXXXXXXX XXX March 16, 2012 Oligopoly is a very common market form where the sellers are so small in numbers that the actions of any one of them would affect the cost of the products and competition would significantly visible. “Oligopoly is defined as an industry dominated by few firms that, by virtue of their individual sizes are large enough to influence the market price”...

Microeconomics There are examples of the use of economics everyday, in movies, and TV shows. In the movie "Tommy Boy" there are many examples of supply and demand and elasticity. In the movie "Tommy Boy" the main character Tommy has been sent out to sell brake pads to keep the factory running. Tommy and his partner Richard go all around the country to try to sell brake pads, but the encounter many problems along the way. After they think they have received enough buyers for their brake pads a...

Economics 370 Microeconomic Theory Problem Set 6 Answer Key 1) Describe the effects on output and welfare if the government regulates a monopoly so that it may not charge a price above p, which lies between the unregulated monopoly price and the optimally regulate price (determined by the intersection of the firm’s marginal cost and the market demand curve). As usual, the monopoly determines its optimal output on the basis of MR = MC. Here, however, it cannot charge a price in excess of p*....

30.11.2012 Key learnings from Micro Economics module It was a very informative session and an eye opener. I was under the impression that economics only deals with fiscal and monetary policies. This was my first acquaintance with micro economics and it opened up a new perspective. I am in a position now to understand many events that happen every day around me. I am able to have a broad idea about how these events may have a direct or indirect impact on me as an individual (professionally as...

ECON545: Project 1—Microeconomic Analysis The Microeconomic Paper tests your ability to apply economic principles to a business decision. Select one situation from the items outlined below: A to D. Complete the paper on the selected situation as specified below. The completed paper is a professional report and is due in Week 3 (230 points). See the grading rubric at the end of this document. Be sure to use the DeVry library for finding data; avoid questionable sources, such as Wikipedia. The...

This question paper must be returned.Candidates are not permitted to removeany part of it from the examination room. | | TUTORIAL GROUPDAY:………………..… TIME:………………….FAMILY NAME:…………………………..…….OTHER NAMES: ………………………………STUDENT NUMBER: ………………………… | CLASS TEST 2 - ANSWERS 2012 Semester 1 Unit: MKTG308 – Customer Relationship Management Day, Date and Time: Week 7 Tutorial Groups Time Allowed: 20 minutes Total Number of Questions: Ten (10)...

1. Bagel restaurant is likely to be a constant industry because it is in the perfect competition industry. Bagel restaurant is in the perfect competition industry because there are few entry barriers in this industry. Anyone could enter this industry. In the short-run, existing firms might get profit just as the case of George’s bagel chain. However, in the long-run, the profit attracts new competitors into this industry, causing price competition. Because each firm will produce at the point...

BAUMOL’S MODEL OF SALES REVENUE MAXIMISATION Maximising sales revenue is an alternative to profit maximisation and occurs when the marginal revenue, MR, from selling an extra unit is zero. Revenue maximisation graph (ref: The condition for revenue maximisation is, therefore, to produce up to the point where MR = 0 SALES MAXIMISATION Sales maximisation is another possible goal and occurs when the firm sells as much as possible without making a loss. Not-for-profit...

With regard to a hospital, a state university, and a museum, define (a) a possible primary aim, or goal, of each, (b) some of the constraints under which they operate, and (c) the relationship of (a) and (b) to the study of managerial economics. Name of Firm Primary Goals Possible Constraints We, the San Pedro Hospital community of health workers commit to: • Provide the best quality and compassionate health care services in satisfying all individuals with respect and reverence of their...

Revenue Management WorkShop 1 Module Name: Planning 2011-2012 WS Objective After attending workshop 1 you should be able to:  Provide examples of market segments and sub segments;  Explain the relation between segmentation and revenue management;  Describe the role of price fencing within revenue management;  Describe various terms & conditions used within revenue management;  Explain the relation between price, purchase conditions & availability;  Explain the factors that...

Cindy Buntinx Liqiong Gu Lore Jorissen Omar Hamdy LAFARGE-AGET 1. How can Lafarge-Aget differentiate its position in the eyes of customers? Lafarge-Aget can use segmentation to better understand its customers by stratifying all customers into two groups. The first group is tactical oriented and the second group is strategic oriented. For the tactical oriented customer, Aget should develop customer support teams, which will aid the customer starting with the project design and...

Macro And Micro Economics Micro Economics:- Microeconomics is a branch of economics that analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households. It is concerned with the interaction between individual buyers and sellers and the factors that influence the choices made by buyers and sellers. In particular, microeconomics focuses on patterns of supply and demand and the determination of price and output in...

Profits Katherine Carpenter Liberty University Econ 213 Gwartney states that profits are; “An excess of sales revenue relative to the opportunity cost of production. The cost component includes the opportunity cost of all resources, including those owned by the firm. Therefore, profit accrues only when the value of the good produced is greater than the value of the resources used for its production.” An example of a profit would be bakery offers a cheesecake for $20 and the total cost to...

ECN 104 Final Exam December 9th 2011 104F11FE Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. An increase in income will cause a shift in the budget constraint a. outward. b. towards the good most consumed. c. inward. d. towards the good least consumed. ____ 2. If the consumption of one good is reduced, how must a consumer alter his consumption of another good in order to remain indifferent between two bundles? a. He must not change his...

Perfect competition Learning outcomes You should be able to: Describe the assumed characteristics of perfect competition: a large number of firms; a homogeneous product, freedom of entry and exit (no barriers to entry or exit); perfect information and perfect resource mobility (factors of production can move easily in and out of the market) Explain, using a diagram, the shape of the perfectly competitive firm’s average revenue and marginal revenue curves, indicating that the assumptions of...

Diversification Diversification can be briefly defined as the expansion of a firm into a range of different product areas. Firms may choose to diversify for either of two reasons. First, diversification may benefit the firm’s owners by increasing the efficiency of the firm. Second, if the firm’s owners are not directly involved in deciding whether to diversify, diversification decisions may reflect the preferences of the firm’s managers. Singapore Airlines (SIA) serves as a typical example of...

The United States government is quite concerned with the issue of maintaining competitiveness in any major industry, particularly to protect the consumer in the long run. When a merger is proposed in an industry, the government must carefully evaluate many parameters to determine long run efficiencies for the firms involved and the consumer. Beyond appraising firm concentration in the industry, the long run result to the consumer and competitiveness of the industry must be weighed into the...

Problem 1 1. In 2008, Roma was a schoolteacher and earned $40,000 for the entire year. But she enjoys creating cartoons, so at the beginning of 2009, Roma quit teaching and set to work as a cartoonist. She stopped renting out her basement for $5,000 a year and began to use it as her office. She used $5,000 from her savings account to buy a new computer which she expects will last for 5 years. She leased a printer for $150 a year. During 2009, Roma paid a total of $1,250 for paper, utilities,...

Executive summary Hilton is running a loyalty program to create and retain loyal customers as its competitors do. Given the severe competition in the lodging industry, all major players are competing by introducing more generous loyalty programs. Hilton should not compete on what its competitors are doing. Instead, it should customize and differentiate its current loyalty program and establish a compelling brand strategy to create brand passion and brand loyalty and to reposition the Hilton...

ALTERNATIVE MARKET STRUCTURES It is traditional to divide industries to categories according to the degree of competition that exists between the firms within the industry. There are four such categories. At one extreme is perfect competition, where there are many firms competing. Each firm is so small relative to the whole industry that it has no market power to influence price. It is a price taker. At the other extreme is monopoly, where there is just one firm in the industry, and hence no...

Key Concepts: - Focus on pricing to maximise revenues and volumes - Separation of ownership and control - Principal Agent – Highlighted in the 1930’s - Shareholders may incentivise management - Revenue maximisation – why this? - Total revenue test - Price elasticity = Baumol Q - Trigger Price - A strategy set is a string of moves - Neo-classical (market – cost minimisation) vs Managerial model of firm (visible hand of management) - Type influences behaviour = seeking to maximise some...

1 Chapter 4.1 Marginal Functions in Economics ___________ Cost: Suppose that C ( x ) describes the cost function for producing x number of a certain product. Then the ___________ cost is the derivative of the cost function, C ( x) , and measures the rate of ________ of the cost function ______________ the number of units ______________. Note 1: The marginal cost for a particular value of x is the ___________ cost of one __________ unit of production. ___________ Revenue Function: R( x)  px...

Efficiency gains achieved without loss of perceived benefits. Competitive advantage through a low-price strategy might be achieved by focusing on a market segment and having the most efficient operation management is crucial to survive. The food retail of Aldi’s industry is a highly competitive market. Because organizations need to offer customers value for money. Customers want the best quality products at the lowest possible prices. With such tough competition it is vital for organizations to...

Perfect competition Prefect competition is a market in which there are many firms selling identical products with no firm large enough, relative to the entire market, to be able to influence market price A perfectly competitive market is a hypothetical market where competition is at its greatest possible level. Neo-classical economists argued that perfect competition would produce the best possible outcomes for consumers, and society. perfect competition describes markets such that no...

CHAPTER 8 ECONOMICS OF STRATEGY: CREATING AND CAPTURING VALUE CHAPTER SUMMARY This chapter is the first of two chapters on strategy. It concentrates on the basic ways firms can create and capture value. Chapter 9 uses game theory to study strategic interactions among a small number of identifiable rival firms. Chapter 8 presents a framework for discussing how firms create value. It also discusses the conditions under which a firm can capture value (either by having market power or, in...

Background Information on Husky By the late 1950s, Husky had established a reputation as a high-quality maker of plastic molds, especially "thinwall" molds used to make vending cups and other containers. As demand for the injection-molding machinery rose around the globe, Husky expanded to Europe in the mid-1960s and established a joint venture in Japan in 1971. A new line of molding systems, tailored for the production of PET bottle preforms, pulled Husky out of its crisis by the end of the...

The summary of the rationality theory and price theory & the conclusion of the book. Careful study of Friedman's new book, Hidden Order: The Economics of Everyday Life, will make the reader a better thinker and a more skilled debater, whether the topic is economics, politics, crime, or love and happiness. Economics is not just the study of satisfying insatiable wants with limited resources, as so many textbooks illustrate. Economic science encompasses all human behaviour: people acting...

Returns to Scale Returns to scale is a concept that tries to explain the behaviour of the output in relation to the change in the total scale of operations of the firm. A change of scale of operations means a change in the total size of the firm, i.e. a change in both labour and capital of the firm. For determining the returns to scale, we need to calculate the Output Elasticity where: Output Elasticity = % change in Output/% change in all inputs The different types of returns to scales...

I. BACKGROUND CMI has developed a new technology using curled metal to create pile driving pads. Compared to existing products on the market, these pad offer several benefits: • Faster pile driving saves contractors rental fees, labor expense , and spreads overhead over more feet driven in a given period of time • Longer life of pads save contractors additional cost in reducing changeover time • Heat resistance further reduces changeover time, saving additional expenses • Safety – CMI pads...

CHAPTER 1—NATURE AND SCOPE OF MANAGERIAL ECONOMICS MULTIPLE CHOICES 1. Business profit is: a. the residual of sales revenue minus the explicit accounting costs of doing business. b. a normal rate of return. c. economic profit. d. the return on stockholders' equity. 2. To maximize value, management must: a. maximize short run revenue. b. minimize short run average profit. c. maximize long run profit. d. maximize short run profit. 3. Value maximization is broader than profit maximization...

ITIONPerfect Competition Perfect competition is a market structure with large number of buyers and sellers. There are no barriers to entry into the industry. Firms sell identical products that are perfect substitutes each other. In addition, they are well informed about prices and no have government intervention. Transport cost is negligible hence do not affect pricing. Price determined by the market must be accepted by the buyers and sellers. They are said to be price takers....

ACCG301 Group project Introduction A business’ success is largely dependable on the relationship it has with its supplier. To know the role the suppliers and competitors play, the company is required to obtain performance related information about prospective suppliers and competitors that the company may require to continue business successfully. This report will discuss what kind of information a company requires. Firstly, it will provide information on elements that are factored into the...

Introduction Real estate agencies in Brisbane are dealt with on a daily basis. The focal point of this paper is to analyse firstly to what extent Brisbane real estate agencies match the characteristics of a perfectly competitive industry. Secondly it will examine the pros and cons of the industry in relation to welfare implications using producer and consumer surplus concepts. This paper will not state which market structure real estate agencies fall under, it is just to what extent the...

Curled Metal Inc – Engineered Product Division Overview Cumberland Metal Industries (CMI) was a company which sold metal as raw material in other products. After the company had developed the product – Slip Seal that could meet the demanding specification of the automakers, it had grown rapidly over the past decade. The sales increased from $750,000 in 1991 to over $55 million in 2007. However, the sales decreased from 61 million in 2006 to 55 million in 2007, a net decrease of 9.5%, the...

Economics 201A: Economic Theory (first half ) Tu-Th 12:30–2:00 150 GSPP 1 Description Economics 201A is the first semester of the required microeconomic theory sequence for first-year Ph.D. students in the economics department. The first half of the fall semester focuses on choice theory, consumer theory, and social choice. The second half will be taught by Chris Shannon and will cover general equilibrium. (A separate syllabus will be distributed for the second half.) In the spring,...

What in the World is Competitive Advantage? Richard P. Rumelt Harry & Elsa Kunin Professor of Business & Society The Anderson School at UCLA Policy Working Paper 2003-105 August 5, 2003 In recent years the concept of competitive advantage has taken center stage in discussions of business strategy. Statements about competitive advantage abound, but a precise definition is elusive. In reviewing the use of the term competitive advantage in the strategy literature, the common theme is value...

Economic Report 1 Economic Summary of the Lemonade Stand Toreka Lewis Ashford University BUS 599 Introduction to Quantitative Principles Dr. Harrison Green September 23, 2011 Economic Report 2 This report provides quantative information on the lemonade stand, sourced from financial statements, the business journal, and financial data collected during all three seasons. The following economic summary report will tell how well the lemonade stand’s business is...

CHAPTER 7 COMPETITIVE ADVANTAGE AND VALUE CREATION Contents 7.1 7.2 7.3 7.4 7.5 Creating Value Growth and Value Creation Competitive Advantage and Value Creation The Components of Value Overview This chapter examines how companies create value in the market and how they capture it to increase the value of the firm. After completing the chapter, you will have an understanding of the connection between value creation and competitive advantage. Also, you will know the basic components of...

Class Test on Micro Economics Grade 12 CBSE Mgmt i) All questions in this section are compulsory ii) Marks for questions are indicated against each iii) Answers for very short answer questions carrying 1 mark must be answered in ONE sentence each iv) Answers for short answer questions carrying 3 marks each should not normally exceed 60 words v) Answers for short answer questions carrying 4 marks each should normally not exceed 70 words vi) Answers for...

Industrial Economics Term Paper First Draft A manager has to make demand analysis, anticipate time value of money, detemine supply and demand levels, create a goal for his/her firm and understand the importance of profits, use his/her company’s products’ elsaticity tendencies before produce them in large quantities, maximize it’s profits and minimize production costs. A firm can be merge with another one because of profit maximization target and minimizing it’s cost. Experiences are also...

Characteristics of Information Good information is that which is used and which creates value. Experience and research shows that good information has numerous qualities. Good information is relevant for its purpose, sufficiently accurate for its purpose, complete enough for the problem, reliable and targeted to the right person. It is also communicated in time for its purpose, contains the right level of detail and is communicated by an appropriate channel, i.e. one that is understandable...

Pure competition is defined by the economists as one of the four market structures in industries. Theoretically, pure competitive markets provide the foundation of supply and demand and prices in such markets would normally move instantaneously to equilibrium. What type of goods represents "pure competition" market? According to the text, the most common examples are fish products and agricultural commodities such as oats, corn, grains, carrots, eggs and other such products (McConnell & Brue,...

University of Phoenix Principles of Microeconomics ECO/365 Professor James Harris III Aug 7, 2008 Article Analysis The article that will be used for this analysis is “Supply, demand, and the Internet-economic lessons for microeconomic principles courses” by Fred Englander and Ronald L. Moy. There will be definitions for the following economics, microeconomics, Law of supply and the Law of demand. Another subject that will be discussed is the identification of factors that lead to...

1. Under which of the following circumstances will the seller pay the whole of an excise (per unit) tax? a) when the tax is collected from the buyer b) when the supply curve has a zero elasticity c) when the demand curve has a zero elasticity d) when the tax is collected from the seller The following three questions refer to the accompanying diagram of a competitive market. Refer to Figure 3 above. A per unit tax is imposed on consumers. The initial price and quantity are P0 and...

Meaning and Definition of Market Market generally means a place or a geographical area, where buyers with money and sellers with their goods meet to exchange goods for money. In Economics market refers to a group of buyers and sellers who involve in the transaction of commodities and services. Characteristics of a market 1. Existence of buyers and sellers of the commodity. 2. The establishment of contact between the buyers and sellers. Distance is of no consideration if buyers and sellers...

SUPPLEMENT TO CHAPTER EIGHT THE TRANSPORTATION MODEL LEARNING OBJECTIVES After completing this supplement you should be able to: 1. Describe the nature of a transportation problem. 2. Solve transportation problems manually and interpret the results. SUPPLEMENT OUTLINE Introduction Obtaining an Initial Solution The Intuitive Lowest-Cost Approach Testing for Optimality Evaluating Empty Cells: The Stepping-Stone Method Evaluating Empty Cells: The MODI Method Obtaining an Improved...

University of Rochester William E. Simon School of Business Administration Professor Greg Shaffer MKT 414/STR423 Pricing Policies Economic Value Analysis Components of EVA: • Reference Value: What you are willing to pay for the next best alternative? • Differentiation Value: What are the relative benefits and costs of your product? From Utility Theory: • Let Vi = a consumer's value or utility from consumption of...

Chapter 1: MANAGERS, PROFITS, AND MARKETS Multiple Choice 1-1 Economic theory is a valuable tool for business decision making because it a. identifies for managers the essential information for making a decision. b. assumes away the problem. c. creates a realistic, complex model of the business firm. d. provides an easy solution to complex business problems. 1-2 Economic profit a. is a theoretical measure of a firm’s performance and has little value in real world decision...

The main goal of most businesses is to make a profit. However, profit is calculated using total revenue and total costs. Therefore, businesses must consider the revenue along with the costs corresponding to the specific number of output in order to increase profit accurately. Firms or industries can increase profit in two ways: firms or industries can take advantage of a market with increasing demand, or firms or industries can find a way to lower the total costs of production. When demand...

This paper investigates the two extremes of market structures. A monopoly firm, and a firm which operates in a perfectly competitive market. We will compare features, similarities, differences, advantages and disadvantages. The monopoly firm I have chosen is Thames Water. This company is an accurate example, as it’s the sole supplier of the industry. The firm, is the industry. Thames Water supply water through peoples taps in and around London. Fyffe is my chosen firm in a perfectly competitive...

1. What are Croc’s core competencies? One of Croc’s core competencies is its revolutionary supply chain as discussed in class. Crocs have the ability to manufacture and deliver its products to retailers rapidly and produce an excessive quantity to avoid customer dissatisfaction. According to the case, in the traditional industry, retailers can only place bulk orders for each season many months in advance with little ability to make changes during the selling season. On the other hand, Croc’s...

 Place your answer on the answer sheet. There are 50 questions, each worth 2 points. 1) In 1985, Alice paid $20,000 for an option to purchase ten acres of land. By paying the $20,000, she bought the right to buy the land for $100,000 in 1992. When she acquired the option in 1985, the land was worth $120,000. In 1992, it is worth $110,000. Should Alice exercise the option and pay $100,000 for the land? A) Yes. B) No. C) It depends on what the rate of inflation was between 1985...

In economics and business decision-making, sunk costs are retrospective (past) costs that have already been incurred and cannot be recovered. Sunk costs are sometimes contrasted with prospective costs, which are future costs that may be incurred or changed if an action is taken. Both retrospective and prospective costs may be either fixed (continuous for as long as the business is in operation and unaffected by output volume) or variable (dependent on volume) costs. Note, however, that many...

From a quantitative perspective, the superior value and price of the Kunst 1600 can be attributed to these three elements. Value Elements: • Cost savings due to the elimination of oil change expenses and messiness -- Most owners and technicians trivialize oil change related costs. • Incremental revenue and profits –Incremental revenue and profits refers to new income that can be attributed to greater product efficiency. In this case study, this occurs in only one segment – light...

 19/08/2013 ECONOMIC ENVIRONMENT OF BUSINESS ASSIGNMENT WILL BIDDEFORD'S TRAM MAKE A RETURN? Question 1 The central focus of this case is how Biddiford Tram Company, under the management of Mary Jo and Marty, can increase revenue and become profitable given the business constraints it must operate under, namely; (a) Loss of $0.15 subsidy per passenger from the State of Maine (b) Not increase the price of tram fare above $2.00 for two years and subsequently not above the rate...

THE BASICS OF REVENUE MANAGEMENT IDeaS © 2005 Integrated Decisions and Systems, Inc. ID-MK-100102-v1-YMBasic The Basics of Revenue Management by IDeaS TABLE OF CONTENTS TABLE OF CONTENTS ..................................................................................................................2 WHAT IS REVENUE MANAGEMENT? ........................................................................................4 When Is Its Use Appropriate?...

Econ2TEST4 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Five months ago Wilson opened up a health club. Which of the following is an implicit cost related to the health club? a. Wilson paid $120 for an outside laundry service to clean the towels used at the club. b. Wilson paid $100 for the pest control exterminator to spray the health club. c. Wilson previously worked as an accountant, earning $3,000 a month. d. Wilson usually eats...

Objective function of firm: y-w-β+κ, for which β=ũy,κ=dka Production Function: y=ka The objective function of firm has been added two functions based on the basic model, -β and +κ, showing the cost and the benefit of non monetary rewards respectively. They are allocated in the firm’s objective function, because the firm is the sender of the rewards, which the firm will have a cost and benefit of the reward from the worker. β is a negative function, since it is the cost of non monetary...

1 The value of a firm is a. smaller the higher is the risk premium used to compute the firm’s value. b. larger the higher is the risk premium used to compute the firm’s value. c. the price for which the firm can be sold minus the present value of the expected future profits. d. both b and c 2 A price-taking firm can exert no control over price because a. the firm's demand curve is downward sloping. b. of a lack of substitutes for the product....

Economies of scale are the cost advantages that a business can exploit by expanding their scale of production. The effect of economies of scale is to reduce the average (unit) costs of production. Economies of scale, in microeconomics, refers to the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased. "Economies of scale" is a long run concept and refers to reductions in unit...

Any typo or mistake is on me. Any questions, email me. xgu@econ.rutgers.edu Econ 102: Sec.07 Problem Set #6: Due on Tuesday, 26-April-2011 Note: 1. Do it LOL. Do it independently. Do it carefully. 2. Write your answer on the answer sheet attached (last page). I only collect the answer sheets on Tuesdays, before the class begins. So you can keep the questions. And if you cannot make Tuesday class, please send me your answers via email before Tuesday class ends. Use attachments, please. 3....

Economics 1101 -- Assignment 4 Problem 1. a. (1 point) What is the total fixed cost for the DeBeers Diamonds? The total fixed cost for the DeBeers Diamonds is zero. b. (2 points) Complete the table above, providing total revenue, marginal revenue and marginal cost, as well as Total Cost when Q = 0. (Remember to put marginal items in between units.) COSTS REVENUES Quantity Produced Total Cost ($) Marginal Cost Quantity Demanded Price ($/unit) Total Revenue Marginal Revenue 0...

TI 2007-091/3 Tinbergen Institute Discussion Paper Procurement Frank A.G. den Butter VU University Amsterdam, and Tinbergen Institute. Tinbergen Institute The Tinbergen Institute is the institute for economic research of the Erasmus Universiteit Universiteit Amsterdam. Tinbergen Institute Amsterdam Roetersstraat 31 The Netherlands Tel.: Fax: 1018 WB Amsterdam +31(0)20 551 3500 +31(0)20 551 3555 Rotterdam, Universiteit van Amsterdam, and Vrije Tinbergen Institute...

Chapter Nine: Competitive Markets 9.1 Market Structure and Firm Behaviour Market structure: all features of a market that affect the behaviour and performance of firms in that market, such as the number and size of sellers, the extent of knowledge about one another’s actions, the degree of freedom of entry, and the degree of product differentiation. Competitive Market Structure Market power: the ability of a firm to influence the price of a product or the terms under which it is sold. The...

Opportunity Cost Scarcity of resources is one of the more basic concepts of economics. Scarcity necessitates trade-offs, and trade-offs result in an opportunity cost. While the cost of a good or service often is thought of in monetary terms, the opportunity cost of a decision is based on what must be given up (the next best alternative) as a result of the decision. Any decision that involves a choice between two or more options has an opportunity cost. Opportunity cost contrasts to...

12.1 Suppose your elasticity of demand for your parking lot spaces is -2, and price is $8 per day. If your MC is zero, and your capacity is 80% full at 9 A.M. over the last month, are you optimizing? We are clearly not optimizing because we are only optimized when marginal revenue equals marginal cost. Because our costs are sunk we should lower our prices so that we can fill to capacity. 14.4 A manufacturer of microwaves has discovered that male shoppers have little value for microwaves...

Case: Moneyball Facts The Oakland A’s short term vision & strong focus on analytics would let them run a profitable team through an entire season on a low budget. Beane relied on a team of two Ivy League analysts focused on statistics in order to provide Beane the necessary tools to undergo a series of trades at half of the season, where trends became serious and teams would focus on next year´s. The Oakland A’s identified a flaw in the market, which was the on base percentage, rather than...

WORKING PAPER SERIES Judo Economics in Markets with Asymmetric Firms Daniel Cracau Working Paper No. 2/2013 Impressum (§ 5 TMG) Herausgeber: Otto-von-Guericke-Universität Magdeburg Fakultät für Wirtschaftswissenschaft Der Dekan Verantwortlich für diese Ausgabe: Daniel Cracau Otto-von-Guericke-Universität Magdeburg Fakultät für Wirtschaftswissenschaft Postfach 4120 39016 Magdeburg Germany http://www.fww.ovgu.de/femm Bezug über den Herausgeber ISSN 1615-4274 Judo...

MCQ’S ON APPLICATION OF THEORY OF PRODUCTION IN MANAGERIAL DECISION-MAKING- 1. Production efficiency: A. Occurs when consumers derive the greatest utility from the Purchase of goods and services. B. Answers the three basic economic questions of what, how, and for whom. C. Refers to least cost production technology. 2. Which of the following represent scarce productive resources? A. Land, technology, labour, organizational skills. B. Land, labour, investment,...

Chapter 1, Basic Microeconomic principles TC function: Represent the relationship between total cost and output, assuming that the firm produces in the most efficient manner possible given its current technological capabilities. Semifixed: fixed over certain ranges of output but variable over other ranges AC(Q): average cost function; describes how the firms average cost function or per unit of output costs vary with the amount of output it produces.  When average costs decreases as...