Questions from Managerial Economics

Q: If unit labor costs in Spain and Portugal rise, but unit

If unit labor costs in Spain and Portugal rise, but unit labor costs in Germany decline and other producer prices remain unchanged, what effect should these factors, by themselves, have on export trad...

Q: Compare the optimal solutions obtained in Exercises 2 and 3. Specifically

Compare the optimal solutions obtained in Exercises 2 and 3. Specifically: a. How much higher (lower) is the optimal selling price when the two firms form a cartel to maximize industry profits, compa...

Q: Would cappuccino by the cup or Prada handbags have wider price variation

Would cappuccino by the cup or Prada handbags have wider price variation in a free trade area like the European Union? Why?

Q: If core price inflation has grown at a compound growth rate of

If core price inflation has grown at a compound growth rate of 2 percent per annum in the United States and 0.06 percent in Japan for the past eight years, what exchange rate represents PPP today if t...

Q: Analyze the following sequential game and advise Kodak about whether they should

Analyze the following sequential game and advise Kodak about whether they should introduce the new product, Picture CD.

Q: The long competition between Subway and Quizno’s subshops took price from $

The long competition between Subway and Quizno’s subshops took price from $6 to $5 for selected Footlongs. Eventually, Quizno’s dropped price another dollar to $4 with its Torpedo product. Market shar...

Q: Suppose you have announced you will “meet the competition” in

Suppose you have announced you will “meet the competition” in response to entry threats by a potential rival who has done marketing research in your target market and is offering a lower price point....

Q: Why should the early adopters of an information technology system provided by

Why should the early adopters of an information technology system provided by IBM Systems Solutions be willing to pay more for a closed-end lease of the servers and other hardware required than for an...

Q: Nike and Adidas face the following coordination problem in trying to decide

Nike and Adidas face the following coordination problem in trying to decide whether to conduct heavy or light combative advertising against the other firm. What should each firm do?

Q: The price elasticity of demand for a textbook sold in the United

The price elasticity of demand for a textbook sold in the United States is estimated to be - 2, whereas the price elasticity of demand for books sold overseas is - 3. The U.S. market requires hardco...