Questions from Managerial Economics


Q: What are some reasons for companies internalizing transaction costs?

What are some reasons for companies internalizing transaction costs?

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Q: A company has 2 million shares outstanding. It paid a dividend

A company has 2 million shares outstanding. It paid a dividend of $2 during the past year, and expects that dividends will grow at 6 percent annually in the future. Stockholders require a rate of retu...

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Q: A Canadian apparel company, Roots, agreed to provide the U

A Canadian apparel company, Roots, agreed to provide the U.S. Olympic team at the 2002 Winter Olympics with various types of clothing, including berets, for free, and further, to turn over a portion o...

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Q: (Read the “The Market for Used Automobiles” section in

(Read the “The Market for Used Automobiles” section in Appendix 4A before answering the question.) When prices of used cars dropped about 10 percent in October 2001, their sales increased by 4.5 perce...

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Q: The following are the monthly changes in the index of leading economic

The following are the monthly changes in the index of leading economic indicators during 2001 and January 2002: What would be your prediction for the U.S. economy in 2002?

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Q: Define scarcity and opportunity cost. What role do these two concepts

Define scarcity and opportunity cost. What role do these two concepts play in the making of management decisions?

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Q: Over the years, the market demand for “long-playing

Over the years, the market demand for “long-playing records made of polyvinyl has fallen considerably as new technologies replaced the old “LP.” Yet, LPs are still available for sale and they sell at...

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Q: Elaborate on the basic economic questions of what, how, and

Elaborate on the basic economic questions of what, how, and for whom. Provide specific examples of these questions with respect to the use of a country’s scarce resources.

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Q: “The growth of consumer information organizations, legal requirements, and

“The growth of consumer information organizations, legal requirements, and warranty requirements has caused significant increases in the cost of customer satisfaction. Thus it is no longer useful to t...

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Q: Define the market process, the command process, and the traditional

Define the market process, the command process, and the traditional process. How does each process deal with the basic questions of what, how, and for whom?

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