Questions from Managerial Economics

Q: Despite a decade of subsidies and considerable success in Denmark, Germany

Despite a decade of subsidies and considerable success in Denmark, Germany, and Britain, renewable energy in the U.S. accounts for only 7 to 8 percent of total energy consumption. Hydroelectric power...

Q: The Olde Yogurt Factory has reduced the price of its popular Mmmm

The Olde Yogurt Factory has reduced the price of its popular Mmmm Sundae from $2.25 to $1.75. As a result, the firm’s daily sales of these sundaes have increased from 1,500 per day to 1,800 per day. C...

Q: The subway fare in your town has just been increased from a

The subway fare in your town has just been increased from a current level of 50 cents to $1.00 per ride. As a result, the transit authority notes a decline in ridership of 30 percent. Compute the pric...

Q: The price elasticity of demand for personal computers is estimated to be

The price elasticity of demand for personal computers is estimated to be −2.2. If the price of personal computers declines by 20 percent, what will be the expected percentage increase in the quantity...

Q: Suppose an appliance manufacturer is doing a regression analysis, using quarterly

Suppose an appliance manufacturer is doing a regression analysis, using quarterly time-series data, of the factors affecting its sales of appliances. A regression equation was estimated between applia...

Q: Explain the effect on capacity reallocations of advance sales data indicating mean

Explain the effect on capacity reallocations of advance sales data indicating mean demand of 55 rather than 60 during a slow travel week for business class, using the information in Figure 14.1, Tab...

Q: After an unanticipated dollar appreciation has occurred, what would you recommend

After an unanticipated dollar appreciation has occurred, what would you recommend a company such as Cummins Engine do with its strong domestic currency?

Q: If the U.S. dollar depreciates 20 percent, how

If the U.S. dollar depreciates 20 percent, how does this affect the export and domestic sales of a U.S. manufacturer? Explain.

Q: Assuming that all other factors remain unchanged, determine how a firm’s

Assuming that all other factors remain unchanged, determine how a firm’s breakeven point is affected by each of the following: a. The firm finds it necessary to reduce the price per unit because of in...

Q: The costs of producing steel have declined substantially from building a conventional

The costs of producing steel have declined substantially from building a conventional hot-rolled steel mill down to the new minimill technology that requires only scrap metal, an electric furnace, and...