Questions from Managerial Economics

Q: An estimate of the demand function for household furniture produced the following

An estimate of the demand function for household furniture produced the following results: where F = furniture expenditures per household Y = disposable personal income per household R = value of...

Q: The setting is a Ralph Lauren outlet store, and the product

The setting is a Ralph Lauren outlet store, and the product line is Polo golf shirts. A product manager and the General Manager for Outlet Sales are analyzing the discounted price to be offered at the...

Q: Motorola’s Iridium, a go-anywhere mobile phone system that transmitted

Motorola’s Iridium, a go-anywhere mobile phone system that transmitted and received signals beamed down from 66 satellites, was called “the eighth wonder of the world” by Motorola CEO Chris Galvin. Ho...

Q: Boeing finishes assembly of wide-bodied commercial aircraft in several sizes

Boeing finishes assembly of wide-bodied commercial aircraft in several sizes at the rate of about one per day. Customers first pay a deposit of one-third of $84 to $127 million for a 767, one-third of...

Q: Tax-relief competition between states seeking high-paying industrial jobs

Tax-relief competition between states seeking high-paying industrial jobs threatens to overpay for any conceivable net benefits. In 1993, Alabama paid more than $300 million in highway, rail, sewer, a...

Q: Amazon’s new tablet computer, the Kindle Fire, has slim margins

Amazon’s new tablet computer, the Kindle Fire, has slim margins at its $199 retail price. Admittedly, this product is trying to change the way we read books. It is therefore positioned so as to penetr...

Q: Analyze the data on inflation rates, interest rates, and growth

Analyze the data on inflation rates, interest rates, and growth rate forecasts in Table 6.1 to determine what the likely near-term trend movement of the U.S. dollar will be. Analyze how each of the pr...

Q: The Leisure Products (LP) Company manufactures lawn and patio furniture

The Leisure Products (LP) Company manufactures lawn and patio furniture. Most of its output is sold to do-it-yourself warehouse stores (e.g., Lowe’s Home Improvement) and to retail hardware and depart...

Q: Demand can be estimated with experimental data, time-series data

Demand can be estimated with experimental data, time-series data, or cross-section data. Sara Lee Corporation generates experimental data in test stores where the effect of an NFL-licensed Carolina Pa...

Q: The summer months bring warm weather, mega fauna (bears),

The summer months bring warm weather, mega fauna (bears), and tourists to the coastal towns of Alaska. Skagway at the top of the Inland Passage was, in the nineteenth century, the entrance to the Yuko...