Questions from Managerial Economics

Q: Supersonic Industries, based in Seattle, Washington, manufactures a wide

Supersonic Industries, based in Seattle, Washington, manufactures a wide range of parts for aircraft manufacturers. The company is currently evaluating the merits of building a new plant to fulfill a...

Q: Dorothy Gale, a quality-control supervisor for Wizard Products,

Dorothy Gale, a quality-control supervisor for Wizard Products, Inc., is concerned about unit labor cost increases for the assembly of electrical snap-action switches. Costs have increased from $80 to...

Q: Mid-Atlantic Cinema, Inc., runs a chain of movie

Mid-Atlantic Cinema, Inc., runs a chain of movie theaters in the east-central states and has enjoyed great success with a Tuesday Night at the Movies promotion. By offering half off its regular $9 adm...

Q: Environmental Designs, Inc., produces and installs energy- efficient window

Environmental Designs, Inc., produces and installs energy- efficient window systems in commercial buildings. During the past ten years, sales revenue has increased from $25 million to $65 million. a....

Q: Toys Unlimited Ltd., must forecast sales for a popular adult computer

Toys Unlimited Ltd., must forecast sales for a popular adult computer game to avoid stockouts or excessive inventory charges during the upcoming Christmas season. In percentage terms, the company esti...

Q: Almost 2 million persons per year visit wondrous Glacier National Park.

Almost 2 million persons per year visit wondrous Glacier National Park. Due to the weather, monthly park attendance figures varied widely during a recent year: a. Notice that park attendance is lowe...

Q: Appalachia Beverage Company, Inc. is considering alternative proposals for expansion

Appalachia Beverage Company, Inc. is considering alternative proposals for expansion into the Midwest. Alternative 1: Construct a single plant in Indianapolis, Indiana, with a monthly production capac...

Q: The U.S. Bureau of the Census publishes employment statistics

The U.S. Bureau of the Census publishes employment statistics and demand forecasts for various occupations. a. Using a spreadsheet or hand-held calculator, calculate the ten-year growth rate forecast...

Q: Untouchable Package Service (UPS) offers overnight package delivery to Canadian

Untouchable Package Service (UPS) offers overnight package delivery to Canadian business customers. UPS has recently decided to expand its facilities to better satisfy current and projected demand....

Q: Indicate whether each of the following involves an upward or downward shift

Indicate whether each of the following involves an upward or downward shift in the long-run average cost curve or, instead, involves a leftward or rightward movement along a given curve. Also indicate...