Managerial Economics Questions And Answers

($372 + $135 + 500) / ($2.21 - ($0.83 + .40)) = 1,028 [+/- 31]

Capital; expenditures decline from 45.8% of revenues in 1995 to 10.8% of revenues by 2001 (also close to Microsoft’s experience);

Imagine that you have decided to open a small ice cream stand on campus called "Ice-Campusades." You are very excited because you love ice cream (delicious!) and this is a fun way for you to apply your business and economics skills! Here is the first month's scenario--you order the same number (and the same variety) of ice creams each day from the ice cream suppliers, and your ice creams are always marked at $1.50 each. However, you notice that there are days when ice creams remain unsold but other days when there are not enough ice creams for the number of customers.

The costs of the company has to be minimized so as to minimize the cost for the customer without deceasing the profits. The company has applied

Jack (45,000 – 500 – 2000 * 25%, yr1/ 134,500 – 1,000 – 2,500 * 25%, yr2)

SQRT(2 * F * T / H) = (2 * 80 * 200,000 / 1.00)0.5

* Consumers will have less disposable income with the current economic climate and therefore may be less likely to spend money on fast food as it may be seen as a luxury.

In this project, you will modify a workbook for the HSP Computer Superstore to track the sales totals for 2011. You will use functions to calculate total sales, average sales, and median, minimum, and maximum sales values. Additionally, you will create a summary worksheet using values from the other spreadsheets in the workbook.

+ (5% are 450 sec) + (3% are 125 sec) + (2% are 120 sec)

No. of employees * (0.10 * Selling Price * Volume of sales) = $100000 + No. of employees * ($25000 + 0.05 * Selling Price * Volume of Sales)

To solve the equation, you plug 3000 in for x and get p(price) = 120. Yes, the unit price of $120 may seem high but because production decreased by almost half and we kept revenue the same the increase in unit price was justified. A function for the elasticity of demand would have to follow the equation E(p) = -pf’(p)/f(p). The predetermined function for f(p) = 12000-75p and taking the derivative f’(p) = -75, these can be plugged into the elasticity demand function to get E(p) = 75p/12000-75p. Using the unit price of $120 for p elasticity of demand comes out to be 3. Since 3 is greater than 1 the unit elasticity at this price is elastic. Based on this finding increasing this price would make revenue less productive and so we should keep the price of the water bottles lower to be able to produce more; however, it would make sense to increase

∏i = (Pe + 40 - 100) x 100 = 100 x Pe –6,000 -------------------- [1]

From Exhibit 4, we can see that the actual expenses are less than the standard ones, so the reductions from those expenses lead to the improved profitability.

When a family eats at home they, will pay less than restaurants because when they buy food from the market they buy for better quality and a better price.

Elasticity of demand helps the sales manager in fixing the price of his product, deciding the sales, pricing policies and optimal price for their products. The evaluation of this measure is a useful tool for firms in making decisions about pricing and production which will determine the total