Economic Analysis for Managers CHAPTER 11 (TECHNICAL QUESTIONS) 1. Do government statistics calculate GDP by simply adding up the total sales of all business firms in one year? Explain. GDP is the market value of all good and services produced in the United States in one year. It includes only final goods and services‚ so the sales of any firms producing intermediate goods are not included. GDP is usually calculated by adding up spending on consumption‚ investment‚ government‚ and net
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1.Consider the following entry game. Here‚ firm B is an existing firm in the market‚ and firm A is a potential entrant. Firm A must decide whether to enter the market (play "enter") or stay out of the market (play "not enter"). If firm A decides to enter the market‚ firm B must decide whether to engage in a price war (play "hard")‚ or not (play "soft"). By playing "hard"‚ firm B ensures that firm A makes a loss of $1 million‚ but firm B only makes $1 million in profits. On the other hand‚ if
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PROBLEM SET # 3 JUDO ECONOMICS The Problem is premised on the following phased structure; | Decision Maker | Decisions To Be Made | Stage 1 | Entrant | Whether to enter or opt out | Stage 2 | Entrant | Set up the price(Pe) and the number of target customers(T) | Stage 3 | Incumbent | Whether to fight or accommodate; 1) Price war 2) Set up the price for remaining customers (100-T) | Stage 4 | Buyer | Consumers buy from whoever offers them the highest surplus. There is no cost to capacity
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ECONOMICS conimists- 16th and 17th centuries. hysiocrats (farmers) ercantalists (traders) Father of Economics/ Father of the classical school of economic thought- Adam Smith (In 1776‚ he wrote ’An enquiry into the nature and causes of the Wealth of Nations’) According to Smith‚ self interest was an invisible hand which would work for the common benefit of the community. The Great Depression of 1929 was a phase in which supply exceeded demand. John Maynard Keynes (a British economist)
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ECM002 Business Economics Instructions: Please answer four out of the following six following questions: Question 1. Suppose Cola- Sol and Miniranda are the only two companies producing a particular type of cola drink in the soft drink industry. Both companies are considering launching a new drink with a light lemon twist. They can launch their products either at a low price or at a high price. The expected net payoffs are the following: If both companies choose a high price strategy‚ Cola-
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1. (a) Explain how a firm operating in an oligopolistic market might attempt to increase its market share. Oligopoly: A market or an industry dominated by a few firms The key point in Oligopoly is that whether the number of the firms in the industry is big or small‚ a large proportion of the market/industry’s output is shared by just a small number of firms. The number of ‘a few’ firms that dominate the market varies depending on the sections of industry. For example 90% of petrol sold in a
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P7.6 Optimal Input Mix. The First National Bank received 3‚000 inquiries following the latest advertisement describing its 30-month IRA accounts in the Boston World‚ a local newspaper. The most recent ad in a similar advertising campaign in Massachusetts Business‚ a regional business magazine‚ generated 1‚000 inquiries. Each newspaper ad costs $500‚ whereas each magazine ad costs $125. A. Assuming that additional ads would generate similar response rates‚ is the bank running an optimal mix of newspaper
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August 14 August 14 Economics 2013 grade 11 Economics 2013 grade 11 Globalisation Research Essay Sarah Morritt-Smith and Bilqees Baker “THE WORLD HAS BECOME OUR GLOBAL VILLAGE Globalisation is the process of international integration arising from the interchange of world views‚ products‚ ideas‚ and other aspects of culture. Put in simple terms‚ globalization refers to processes that increase world-wide exchanges of national and cultural resources. Advances in transportation and telecommunications
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Economics 101 Spring 2011 Answers to Homework #1 Due 2/2/11 Directions: The homework will be collected in a box before the lecture. Please place your name‚ TA name and section number on top of the homework (legibly). Make sure you write your name as it appears on your ID so that you can receive the correct grade. Please remember the section number for the section you are registered‚ because you will need that number when you submit exams and homework. Late homework will not be accepted so make
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E-mail ID: nishil.tanwani@gmail.com Lecturer’s NAME: dr. yuanfei kang “Globalisation” is a term used for a process in which people of the world are unified into a single society to function together. It is the integration of the globe into the international economy through international trade‚ FDI‚ FPI‚ and immigration. The decline in barriers between the countries for international trade and investment has made all countries interdependent. Globalization offers
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