Questions from Managerial Economics

Q: During the past 40 years the average price of a new single

During the past 40 years the average price of a new single-family home has risen by a factor of ten, making the cost of housing prohibitive for many Americans. Over the same time frame, however, the n...

Q: What would an upward-sloping demand curve imply about the marginal

What would an upward-sloping demand curve imply about the marginal utility derived from consumption? Why aren't upward sloping demand curves observed in the real world?

Q: How is a price-consumption curve related to a demand curve

How is a price-consumption curve related to a demand curve?

Q: An estimated 80% increase in the retail price of cigarettes is

An estimated 80% increase in the retail price of cigarettes is necessary to cause a 30% drop in the number of cigarettes sold. Would such a price increase help or hurt tobacco industry profits? What w...

Q: Individual consumer demand declines for inferior goods as personal income increases because

Individual consumer demand declines for inferior goods as personal income increases because consumers replace them with more desirable alternatives. Is an inverse relation between demand and national...

Q: In the United States, high-wage workers shun public transit

In the United States, high-wage workers shun public transit and drive cars to work. These same high-income individuals often support massive subsidies for public transit. Use the concept of revealed p...

Q: Cornell Pharmaceutical, Inc., and Penn Medical, Ltd., supply

Cornell Pharmaceutical, Inc., and Penn Medical, Ltd., supply generic drugs to treat a wide variety of illnesses. A major product for each company is a generic equivalent of an antibiotic used to treat...

Q: "The utility derived from consumption is intangible and unobservable. Therefore

"The utility derived from consumption is intangible and unobservable. Therefore, the utility concept has no practical value.” Discuss this statement.

Q: Is an increase in total utility or satisfaction following an increase in

Is an increase in total utility or satisfaction following an increase in income consistent with the law of diminishing marginal utility?

Q: Prospective car buyers are sometimes confronted by sales representatives who argue that

Prospective car buyers are sometimes confronted by sales representatives who argue that they can offer a vehicle that is “just as good as a BMW, but at one-half the price.” Use the indifference concep...