Economics Exam Practice

include a graphical representation of the data and information used in your analysis. III. Examine the price elasticity of demand for the product(s) your firm sells. a) Analyze the available data and information, such as pricing and the

(A) Elastic (B) Inelastic (C) unit elastic (D) perfectly elastic (E) perfectly inelastic 3. Which of the following best describes the law of demand? (A) The 7. Which of the following must be true if a firm is experiencing economies of scale?

Table of Contents 1) Explain briefly contribution margin. How is it calculated? 2 2) Using Budget Data, estimate the breakeven sales for Apple iPhone 4 3 3) Using the budget Data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocate to planned production? What was the actual cost per unit of production and shipping?

(TCO 5) You’ve just joined the staff of the XYZ Manufacturing Company (XYZ, for short). XYZ manufactures only one product, the gizmo. It comes in two sizes, the mini-gizmo and the magna-gizmo. Both are difficult to manufacture, and consequently, the company closely monitors rejected units. The company has three locations, each of which produces both the mini and the magna-gizmos. You are automating the weekly production reports so that you can easily calculate total production for the entire company each week.

Joe Chatman Ashford University BUS 640 Managerial Economics Dr. David Brownfield January 14, 2013 Chapter 11, Applied Problem, 8 a. This particular industry has a constantly increasing cost. There will be an increase in the demand for input factors for one key reason. Every day, new companies will be introduced into this market of remodeling, economic profits being the encouraging factor. Because of this, there will be a bid up on input prices for the companies in the industry of remodeling. “When a market is characterized by a large number of small producers, the demand curve facing the manager of each individual firm is horizontal at the price determined by the

a. consumers' incomes will increase over time. b. the demand curve will shift outward as time passes. c. all prices will increase over time. d. consumers will be better able to find substitutes. 4. A state reducing production to the point where variable costs are minimized. b. reducing production to the point where unit costs are minimized. c. reducing its output and simultaneously increasing its price. d. increasing its output. 15. In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that is ( )

Here Q*~32,400. c. Confirm your quantity and price results algebraically. The profit maximizing quantity is that level of Q, at which MR=MC. MR = 2833.13484 - 0.054Q = MC= 755.363 + 0.01Q, 0.064Q = 2077.77184, Q* = 32465.185. P*=2833.13484 - 0.027Q* = 1956.574845. d. Calculate the price elasticity of demand in each market and discuss these in relation to the prices to be charged in each market.

9. (TCO 8) The marketing manager is responsible for choosing how to implement which? (Select all that apply.)

29) A common mistake in pricing is ____________________. 30) The introduction of a new product to the market using market-penetration pricing is most likely to be successful when _____________.

Associate Level Material Appendix B (6 points each for all 5 questions) Price Elasticity and Supply & Demand Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity

1. (TCO 1) You work for a local construction firm, "DeVry Engineering Group" and your supervisor wants to test your knowledge and skills with Microsoft Excel and has instructed you to develop a spreadsheet to calculate weekly payroll for “15” employees with the following assumptions: Note: This is a one part question. • Each employee

c.) What will this do to In the space provided you are to do a number of things: a. Draw and properly label a demand and supply curve. b. Indicate where the equilibrium Price and Quantities are located. c. How do things change based on the following scenario? The market for hybrid cars is changing. There are more providers but due to bad publicity and poor performance, demand is falling.

Question 3 Hannon Company expects to produce 1,200,000 units of Product XX in 2010. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1. Complete the flexible manufacturing budget for the relevant range value using 20,000 unit increments.

Question Using the sample data given in Table 2-20, make a recommendation for how many units of each style Wally should make during the initial phase of production. Assume that all of the 10 styles in the sample problem are made in Hong Kong and that Wally’s initial production commitment must be at least 10,000 units. Ignore price differences among styles in your initial analysis.

Case Study (Knapp book): Dollar General Stores Questions 1-4 Weekly Assignment: Textbook (Boynton book): Complete and submit the following questions for grading: 14-26 14-28 15-23 15-27 16-24 16-33 14-26 (Analytical procedures) the following data was taken from the production and accounting records for Casuccio Manufacturing, Inc.