Constant elasticity of substitution

1 Managerial Economics 2010 Answers to All Tutorial Questions Topic 1 : What is managerial economics Questions from Chapter 1 of the Text (McTaggart, Findlay & Parkin) Review Question 1 (pp. 4) List some examples of scarcity in Australia today. An example of scarcity at the economy-wide level would be people with lower incomes being forced to choose between food and petrol due to high prices for both. An example of scarcity at an individual level would be a person unable to afford both

In a fiercely competitive economy, good social reputations are companies’ biggest asset. Copious recent research established direct correlations between companies’ social responsibility and consumer purchasing behaviours. As consumers have more substitution options, it is easier to boycott unethical companies. In the recent decade, Wal-Mart has been entangled in a series of legal and ethical battle around the world. Hiring illegal immigrant worker , refusing to pay overtime fee , discriminating against

QUESTIONS : 1.What are the various factors which may influence the demand for intermediate goods like cables? Explain the most appropriate method of forecasting the demand for such an item. 2. a) Explain the method of cost-plus pricing and state its limitations. Point out cases where it is suitable. b) Briefly outline the statistical method of estimating cost function. 3. a) Explain the concept of law of diminishing marginal utility with a suitable example. Why is it relevant for managers in taking

Economic Analysis of Starbucks Corporation It’s hard to drive the street these days and not see a Starbuck’s coffee house sitting on a corner with cars lined up in the drive-thru or consumers gathering in their café to socialize. This has been the scene since the first Starbucks was opened in 1971. Since then, Howard Schultz, chairman and CEO, has embarked on a vision to bring Italian coffeehouse traditions back to the United States. Starbucks mission statement is simple, “to inspire and nurture

Change (MAGICC). “Regional population and labor productivity growth assumptions drive the energy and land-use systems employing numerous technology options” (JGCRI, n.d.). The “GDP is a simple labor-productivity model with an energy-GDP feedback elasticity” (JGCRI, 2014). Technology change is modeled using an autonomous energy efficiency index (AEEI) parameter. The choice of generation mix of technologies in GCAM is based on a logit model, which includes the relative cost, logit exponents, and share

B) elastic. C) Both A and B above. D) Neither A nor B above. 16. A normal good has a ________ income elasticity of demand and quantity demanded ________ as income rises. A) negative; increases B) negative; decreases C) positive; increases D) positive; decreases 17. An indifference curve represents bundles of goods that a consumer A) views as equally

This thesis investigates the long-run causality direction between financial markets development and economic growth in Croatia, Slovenia, Serbia and China for varying time periods using VAR models and Granger Causality methods. It also explores the interrelationships between variables using the Impulse Response Function. Financial industry consists of two main parts; debt and equity (Krugman and Obstfeld, 2009). These are also called debt and equity markets. Credit markets which are primarily consisted

MB0042 - Managerial Economics ASSIGNMENT SET I: Ans.1. The price elasticity of demand is not the same for all commodities. It may be or low depending upon number of factors. The factors which influence price elasticity of demand, in brief, are as under:          (i) Nature  of Commodities. In developing countries of the world, the per capital income of the people is generally low. They spend a greater amount of their income on the purchase

Answer.1 The Australian government recently announced deregulation in the higher education sector to increase the competition worldwide. The deregulation will drop the demand for undergraduate courses offered by the Australian universities among domestic or international students. The government also increases the interest rate of student loans; it might affect the studies of number of students. It can also affect other things indirectly such as rate of unemployment, literacy rate, building rent

Mock Final Examination Managerial Economics Prof. Volker Hoffmann Prof. Thomas Rutherford Florian Landis February 10, 2012 N.B. Mock questions related to Professor Hoffmann’s case studies are not included here. 1 Multiple Choice Note the one correct answer on your answer sheet. 1. Which of the following statements is most likely true regarding economic and accounting profits? A. Economic profits minus accounting profits generally equal zero. B. Economic profits plus accounting profits generally