ECO 2301 PRIN MICROECO W/MYECONLAB >I
3rd Edition
ISBN: 9781323504406
Author: CASE
Publisher: PEARSON C
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Chapter 15, Problem 2.8P
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Why the company like McD offer regional variety foods or limited time foods.
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The poinsettia is a wildflower native to Mexico. It was almost unknown in the U.S. until the Ecke family began selling them in the early 1900s from their flower stand in California. A member of the Ecke family discovered a grafting process that resulted in a much thicker and more colorful poinsettia plant, which became hugely popular at Christmas. The Ecke family did not attempt to patent the grafting process, but instead managed to keep the process a secret for many decades, and so maintained a monopoly on the commercial production of poinsettias for all those years. Eventually, a university professor figured out the grafting technique, and published it in an academic journal. What do you think happened to the price of poinsettias after publication of that article? Why?
The Beer Standard. In 1999, The Economist reported the creation of an index, or standard, for the evaluation of African currency values using the local prices of beer. Beer, instead of Big Macs, was chosen as the product for comparison because McDonald’s had not penetrated the African continent beyond South Africa, and beer met most of the same product and market characteristics required for the construction of a proper currency index. Investec, a South African investment banking firm, has replicated the process of creating a measure of purchasing power parity (PPP) like that of the Big Mac Index of The Economist, for Africa.
The index compares the cost of a 375-milliliter bottle of clear lager beer across Sub-Saharan Africa. As a measure of PPP, the beer needs to be relatively homogeneous in quality across countries, and must possess substantial elements of local manufacturing, inputs, distribution, and service in order to actually provide a measure of relative purchasing power. The…
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ECO 2301 PRIN MICROECO W/MYECONLAB >I
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- The ATV Company produces a specialty cement used in the construction of roads. ATV is a price-setting firm and estimates the demand for its cement using a demand function in the linear form: Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard. The manager of ATV obtained the following results in her attempt to estimate the demand for cement in the succeeding months. The results are presented below: DEPENDENT VARIABLE Qc R- SQUARE F-RATIO P-VALUE ON F OBSERVATIONS 64 0.8093 84.872 0.0001 VARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54…arrow_forwardThe ATV Company produces a specialty cement used in the construction of roads. ATV is a price-setting firm and estimates the demand for its cement using a demand function in the linear form: Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard. The manager of ATV obtained the following results in her attempt to estimate the demand for cement in the succeeding months. The results are presented below: DEPENDENT VARIABLE Qc R- SQUARE F-RATIO P-VALUE ON F OBSERVATIONS 64 0.8093 84.872 0.0001 VARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54…arrow_forwardYou work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia.Conduct an analysis on the entry country (Australia) based on the following; Can people and goods travel between major population centers? How adequate are the highways, trains, and air and water transportation? Are the ports adequate for container ships? What is the availability of the Internet to business and general population, and the adequacy of land line communications versus cell phones should be noted here?arrow_forward
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