Questions from Managerial Economics

Q: Most of the appliances that Whirlpool sells in the UK are built

Most of the appliances that Whirlpool sells in the UK are built in the EU. What is the effect of a pound depreciation on Whirlpool’s profit margin?

Q: If market participants expect the krona to appreciate relative to the dollar

If market participants expect the krona to appreciate relative to the dollar, what will happen?

Q: How will a dollar devaluation affect businesses and consumers in the twin

How will a dollar devaluation affect businesses and consumers in the twin cities of El Paso, the United States, and Juarez, Mexico?

Q: In 2014, the euro was trading at $1.35

In 2014, the euro was trading at $1.35 on the foreign exchange market. By 2015, the rate had fallen to $1.10, due to falling European interest rates. Explain the fall in the price of a euro using supp...

Q: When Great Britain voted to leave the Eurozone, the pound depreciated

When Great Britain voted to leave the Eurozone, the pound depreciated 17% against the dollar. It also raised fears that the Eurozone would fall apart. Explain how this fear would affect the dollar/eur...

Q: Explain the effects of the pound devaluation on: (1

Explain the effects of the pound devaluation on: (1) Imports and tourism to Great Britain; and (2) Profits of US banks with European trading subsidiaries in London (which earn profit in pounds).

Q: Explain the effect of a dollar depreciation on domestic firms and domestic

Explain the effect of a dollar depreciation on domestic firms and domestic consumers for goods with less than 100% domestic content.

Q: Suppose your elasticity of demand for your parking lot spaces is –

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 lot is 80% full at 9 A.M. over the last month, are you optimizing?

Q: In order to create an effective incentive compensation scheme, you must

In order to create an effective incentive compensation scheme, you must have a. adequate performance measures. b. unlimited funds. c. a flat management structure. d. none of the above.

Q: What would efficient revenue management imply for the pricing of the Cowboys

What would efficient revenue management imply for the pricing of the Cowboys Stadium parking lot on typical game days? How about for the Super Bowl? How about for the many smaller events that fill les...