Questions from Managerial Economics

Q: The causes and consequences of the global financial crisis (GFC)

The causes and consequences of the global financial crisis (GFC) are numerous and remain hotly debated. One catalyst was clearly the collapse of the U.S. housing market in 2007–2008. The Federal Reser...

Q: Consider again the Sherwin-Williams Company example discussed in this chapter

Consider again the Sherwin-Williams Company example discussed in this chapter (see Table 4.1). Suppose one is interested in developing a multiple regression model with paint sales (Y) as the dependent...

Q: The following table presents data on sales (S), advertising (

The following table presents data on sales (S), advertising (A), and price (P): Estimate the following demand models: b. Determine whether the estimated values of β1 and β2...

Q: Differentiate the following functions: a. Y = 2X3

Differentiate the following functions: a. Y = 2X3 / (4X2 – 1) b. Y = 2X / (4X2 – 1) c. Y = 8Z2 - 4Z þ 1, where Z = 2X2 - 1 (differentiate Y with respect to X)

Q: The forecasting staff for the Prizer Corporation has developed a model to

The forecasting staff for the Prizer Corporation has developed a model to predict sales of its air-cushioned-ride snowmobiles. The model specifies that sales S vary jointly with disposable personal in...

Q: Define Q to be the level of output produced and sold,

Define Q to be the level of output produced and sold, and assume that the firm’s cost function is given by the relationship: TC = 20 + 5Q + Q2 Furthermore, assume that the demand for the output of t...

Q: Use the monthly series on the Consumer Price Index (all

Use the monthly series on the Consumer Price Index (all items) from the previous two years to produce a forecast of the CPI for each of the next three years. Is the precision of your forecast greater...

Q: If the U.S. dollar were to appreciate substantially,

If the U.S. dollar were to appreciate substantially, what steps could a domestic manufacturer such as Cummins Engine Co. of Columbus, Indiana, take in advance to reduce the effect of the exchange rate...

Q: Sony’s PlayStation 2 (PS2) dominated the game console market from

Sony’s PlayStation 2 (PS2) dominated the game console market from 1997–2003 with 123 million units sold. Today, Nintendo’s Wii has 62 percent of the market. Prices to achieve this spectacular growth h...

Q: What are the incentives to innovate for a monopoly firm as compared

What are the incentives to innovate for a monopoly firm as compared with a firm in a competitive market if patent protection is not available?