Questions from Managerial Economics


Q: Which concept--the business profit concept or the economic profit concept

Which concept--the business profit concept or the economic profit concept--provides the more appropriate basis for evaluating business operations? Why?

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Q: Some argue that prescription drug manufacturers, like Pfizer, gouge consumers

Some argue that prescription drug manufacturers, like Pfizer, gouge consumers with high prices and make excessive profits. Others contend that high profits are necessary to give leading pharmaceutical...

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Q: Why is the concept of enlightened self-interest important in economics

Why is the concept of enlightened self-interest important in economics?

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Q: "In the long run, a profit-maximizing firm would

"In the long run, a profit-maximizing firm would never knowingly market unsafe products. However, in the short run, unsafe products can do a lot of damage." Discuss this statement.

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Q: Spreadsheet analysis is an appropriate means for studying the demand and supply

Spreadsheet analysis is an appropriate means for studying the demand and supply effects of possible changes in various exogenous and endogenous variables. Endogenous variables include all important de...

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Q: The following relations describe monthly demand and supply conditions in the metropolitan

The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum QD = 317,500 - 10,000P (Demand)  QS = 2,500 + 7,500P, (Supply)   where Q...

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Q: Eye-de-ho Potatoes is a product of the Coeur

Eye-de-ho Potatoes is a product of the Coeur d’Alene Growers’ Association. Producers in the area are able to switch back and forth between potato and wheat production depending on market conditions. S...

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Q: Information Technology, Inc., is a supplier of math coprocessors (

Information Technology, Inc., is a supplier of math coprocessors (computer chips) used to speed the processing of data for analysis on personal computers. Based on an analysis of monthly cost and outp...

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Q: The following relations describe demand and supply conditions in the lumber/

The following relations describe demand and supply conditions in the lumber/forest products industry QD = 80,000 - 20,000P (Demand) QS = -20,000 + 20,000P (Supply) where Q is quantity measured...

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Q: The concept of multivariate optimization is important in managerial economics because many

The concept of multivariate optimization is important in managerial economics because many demand and supply relations involve more than two variables. In demand analysis, it is typical to consider th...

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