Questions from Managerial Economics

Q: Revenue at a major smart phone manufacturer was $2.3

Revenue at a major smart phone manufacturer was $2.3 billion for the nine months ending March 2, up 77 percent over revenues for the same period last year. Management attributes the increase in revenu...

Q: You are the manager of a firm that sells a leading brand

You are the manager of a firm that sells a leading brand of alkaline batteries. A file named Q03-12.xls with data on the demand for your product is available online at www.mhhe.com/baye10e. Specifical...

Q: For the first time in two years, Big G (the

For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent. If, as a result of this price increase, the volume of all cereal sold by Big G dropped...

Q: Nationwide Bank has approached Hometown Bank with a proposal to merge.

Nationwide Bank has approached Hometown Bank with a proposal to merge. The following table lists the sales of the banks in the area. Use this information to calculate the four-firm concentration ratio...

Q: If Starbucks’s data analytics department estimates the income elasticity of demand for

If Starbucks’s data analytics department estimates the income elasticity of demand for its coffee to be 1.6, how will the prospect of an economic boom (expected to increase consumers’ incomes by 3 per...

Q: You are a division manager at Toyota. If your data analytics

You are a division manager at Toyota. If your data analytics department estimates that the semiannual demand for the Highlander is Q = 150,000 − 1.5P, what price should you charge in order to maximize...

Q: You are a manager in charge of monitoring cash flow at a

You are a manager in charge of monitoring cash flow at a major publisher. Paper books comprise 40 percent of your revenues, which grow about 2 percent annually. You recently received a preliminary rep...

Q: As newly appointed “Energy Czar,” your goal is to reduce

As newly appointed “Energy Czar,” your goal is to reduce the total demand for residential heating fuel in your state. You must choose one of three legislative propo...

Q: As the owner of Barney’s Broilers—a fast-food chain

As the owner of Barney’s Broilers—a fast-food chain—you see an increase in the demand for broiled chicken as consumers become more health conscious and reduce their consumption of beef and fried foods...

Q: Suppose the Kalamazoo Brewing Company (KBC) currently sells its microbrews

Suppose the Kalamazoo Brewing Company (KBC) currently sells its microbrews in a seven-state area: Illinois, Indiana, Michigan, Minnesota, Mississippi, Ohio, and Wisconsin. The company’s data analytics...