Questions from Managerial Economics


Q: Jamie is considering leaving her current job, which pays $75

Jamie is considering leaving her current job, which pays $75,000 per year, to start a new company that develops applications for smart phones. Based on market research, she can sell about 50,000 units...

See Answer

Q: Approximately 14 million Americans are addicted to drugs and alcohol. The

Approximately 14 million Americans are addicted to drugs and alcohol. The federal government estimates that these addicts cost the U.S. economy $300 billion in medical expenses and lost productivity....

See Answer

Q: As a marketing manager for one of the world’s largest automakers,

As a marketing manager for one of the world’s largest automakers, you are responsible for the advertising campaign for a new energy-efficient sports utility vehicle. Your support tea...

See Answer

Q: The head of the accounting department at a major software manufacturer has

The head of the accounting department at a major software manufacturer has asked you to put together a pro forma statement of the company’s value under several possible growth scenarios and the assump...

See Answer

Q: Suppose one of your clients is four years away from retirement and

Suppose one of your clients is four years away from retirement and has only $2,500 in pretax income to devote to either a Roth or traditional IRA. The traditional IRA permits investors to contribute t...

See Answer

Q: You are the manager in charge of global operations at Bank Global

You are the manager in charge of global operations at Bank Global—a large commercial bank that operates in a number of countries around the world. You must decide whether or not to l...

See Answer

Q: According to The Wall Street Journal, merger and acquisition activity in

According to The Wall Street Journal, merger and acquisition activity in the first quarter rose to $5.3 billion. Approximately three-fourths of the 78 first-quarter deals occurred between information...

See Answer

Q: Recently, European Union (EU) governments approved a five-

Recently, European Union (EU) governments approved a five-year EU trade protection against grain-oriented electrical steel (GOES) from Russia, Japan, China, South Korea, and the United States. The pro...

See Answer

Q: You work at a firm on Wall Street that specializes in mergers

You work at a firm on Wall Street that specializes in mergers, and you are the team leader in charge of getting approval for a merger between two major beer manufacturers in the United States. While T...

See Answer

Q: You are the manager of Local Electronics Shop (LES), a

You are the manager of Local Electronics Shop (LES), a small brick-and-mortar retail camera and electronics store. One of your employees proposed a new online strategy whereby LES lists its products a...

See Answer