Questions from Managerial Economics

Q: “Rapid innovation in the development, assembly, and delivery of

“Rapid innovation in the development, assembly, and delivery of personal computers has led to a sharply downward sloping market demand curve for Dell, Inc.” Discuss this statement.

Q: “Demand for higher education is highest among the wealthy. This

“Demand for higher education is highest among the wealthy. This has led to an upward sloping demand curve for college education. The higher the tuition charged, the greater is demand.” Discuss this st...

Q: How do linear and log-linear models differ in terms of

How do linear and log-linear models differ in terms of their assumptions about the nature of demand elasticities?

Q: If a regression model estimate of total profit is $50,

If a regression model estimate of total profit is $50,000 with a standard error of the estimate of $25,000, what is the chance of an actual loss?

Q: A simple regression TR = a + bQ is not able to

A simple regression TR = a + bQ is not able to explain 19 percent of the variation in total revenue. What is the coefficient of correlation between TR and Q?

Q: A review of industry wide data for the jelly and jam manufacturing industry

A review of industry wide data for the jelly and jam manufacturing industry suggests the following industry supply function: Q = -59,000,000 + 500,000P - 125,000PL - 500,000PK + 2,000,000W, where Q is...

Q: In a regression-based estimate of a demand function, the

In a regression-based estimate of a demand function, the beta coefficient for advertising equals 3.75 with a standard deviation of 1.25 units. What is the range within which there can be 99 percent co...

Q: Managers often study the profit margin-sales relation over the life

Managers often study the profit margin-sales relation over the life cycle of individual products, rather than the more direct profit-sales relation. In addition to the economic reasons for doing so, a...

Q: Describe some of the limitations of market experiments.

Describe some of the limitations of market experiments.

Q: “When I go to the grocery store, I find cents

“When I go to the grocery store, I find cents-off coupons totally annoying. Why can’t they just cut the price and do away with the clutter?” Discuss this statement and explain why coupon promotions ar...