Questions from Managerial Economics

Q: Suppose that two mining companies, Australian Minerals Company (AMC)

Suppose that two mining companies, Australian Minerals Company (AMC) and South African Mines, Inc. (SAMI), control the only sources of a rare mineral used in making certain electronic components. The...

Q: Two insurance companies that manage employee benefit programs are bidding for additional

Two insurance companies that manage employee benefit programs are bidding for additional business in their area of expertise at a market rate of $200 per hour. The potential customers refuse to leave...

Q: How do the analysis and the strategic equilibrium outcome differ in Exercise

How do the analysis and the strategic equilibrium outcome differ in Exercise 4 if the other firm enjoys a cost advantage (e.g., $35 at AA&D)? Then does the order of play (i.e., who goes first in makin...

Q: Consider an ongoing sequence of pair wise marketing competitions between three companies

Consider an ongoing sequence of pair wise marketing competitions between three companies with promotional campaigns of varying degrees of success. Each campaign involves comparative advertising belitt...

Q: People who are regularly late often don’t bother to carry watches.

People who are regularly late often don’t bother to carry watches. In response, other people tend to adjust to their tardiness by starting meetings 10 minutes after theyâ€...

Q: The county assessor (see Exercise 4) feels that the use

The county assessor (see Exercise 4) feels that the use of more independent variables in the regression equation might improve the overall explanatory power of the model. In addition to size, the asse...

Q: The price elasticity of demand for air travel differs radically from first

The price elasticity of demand for air travel differs radically from first-class (- 1.3) to unrestricted coach (- 1.4) to restricted discount coach (- 1.9). What do these elasticities mean for optimal...

Q: A U.S. export-import shipping company operates a

A U.S. export-import shipping company operates a general cargo carrier service between New York and several western European ports. It hauls two major categories of freight: manufactured items and sem...

Q: Bell Greenhouses has estimated its monthly demand for potting soil to be

Bell Greenhouses has estimated its monthly demand for potting soil to be the following: N = 400 + 4X where N = monthly demand for bags of pottin...

Q: Consider again the total revenue and total cost functions shown in tabular

Consider again the total revenue and total cost functions shown in tabular form in the previous problem. a. Compute the total, marginal, and average profit functions. b. On a single graph, plot the to...