Questions from Managerial Economics

Q: Suppose the supply function for product X is given by Qx s

Suppose the supply function for product X is given by Qx s = −30 + 2Px − 4Pz. (LO1) a. How much of product X is produced when Px = $600 and Pz = $60? b. How much of product X is produced when Px = $80...

Q: After seven years of negotiations, 12 countries—including the United

After seven years of negotiations, 12 countries—including the United States, Japan, Vietnam, and nine other Pacific Rim countries—crafted the Trans-Pacific Partnership (TPP). A key feature of the TPP...

Q: Which of the following would most likely be scrutinized under the FTC

Which of the following would most likely be scrutinized under the FTC and DOJ Horizontal Merger Guidelines? a. Two major players in Internet services and retailing—Amazon.com and eBay— merge. b. Cigar...

Q: The demand for good X is given by, /

The demand for good X is given by, Research shows that the prices of related goods are given by Py = $6,500 and Pz = $100, while the average income of individuals consuming this product is M = $70,00...

Q: Suppose the cross-price elasticity of demand between goods X and

Suppose the cross-price elasticity of demand between goods X and Y is 2. How much would the price of good Y have to change in order to increase the consumption of good X by 50 percent?

Q: You are the manager of a firm that receives revenues of $

You are the manager of a firm that receives revenues of $20,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is −3 and the cross-price...

Q: An econometrics expert from your firm used a linear demand specification to

An econometrics expert from your firm used a linear demand specification to estimate the demand for its product and sent you a hard copy of the results. a. Based on these estimates, write an equation...

Q: Suppose the true inverse demand relation for good X is Qx d

Suppose the true inverse demand relation for good X is Qx d = a + bPx + cM + e, and you estimated the parameters to be â = 22, bˆ = −1.8, σâ = 2.5, and σ bˆ = 0.7. Find the approximate 95 percent conf...

Q: The demand function for good X is Qx d = a +

The demand function for good X is Qx d = a + bPx + cM + e, where Px is the price of good X and M is income. Least squares regression reveals that â = 8.27, bˆ = −2.14, ĉ = 0.36, σâ = 5.32, σ bˆ = 0.41...

Q: The demand function for good X is ln Qx d = a

The demand function for good X is ln Qx d = a + b ln Px + c ln M + e, where Px is the price of good X and M is income. Least squares regression reveals that â = 7.42, bˆ = −2.18, and ĉ = 0.34. (LO5, L...