Lecture 1: Microeconomics and Biz Strategy References: Pindyck&Rubinfeld. Chap.1 What are the firm’s important functions and strategies ? 1. Selling need to know consumers purchasing behavior for example‚ what if the price increases: price elasticity of demand marketing/product positioning strategies Topics 3-5 lectures 2. Production Supply function/producers output decision how to produce? Firms output decision: Short run vs LR For example‚ should the firm continue producing
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target the mid-high price range market encounter a few international branding competitor like Calvin Klein‚ DKNY‚ Paris Hilton‚ Armani Exchange and Lacoste in the market and were highly competitive for years. Bonia Group was advised to avoid price increase for the coming years as sales figures for the past 10 years show that Bonia Group were in elastic demand. In order to increase yearly sales amount‚ the Group could actually remain or decrease price as in elasticity demand‚ sales growth
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characterised as being price takers dependant upon supply and demand. Tesco is the market leader in the UK and 5 international countries (Tesco 2006). Due to the fact that they are in an oligopoly market‚ Tesco ’s decisions would be mainly influenced by the decisions that their other few competitors‚ such as Sainsbury‚ are making too as well as how they are likely to respond to Tesco ’s actions‚ which include their expansion into other product ranges‚ integration‚ and price strategies. 2. BARRIERS
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pursuing a career as a doctor and on the best location to practice medicine. She got wind that I am currently taking a business course in economics and decided to e-mail me for information on the market for physicians in terms of supply and demand‚ elasticity‚ costs of production‚ pricing‚ and economic profit and loss. As a caring uncle‚ I definitely recognize the significance of choosing a career in medicine. I truly want Jenny to be armed with the most valuable and pertinent information on the topic
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demand are the first and most useful tools of analysis. Price controls such as‚ price ceiling‚ price floor and tax incidence mentioned in this chapter show how price controls affect economy. Price ceiling is a legal maximum on the price at which a good can be sold and price floor is a legal minimum on the price at which a good can be sold. Evaluating price controls‚ this chapter explains why economists usually oppose price ceiling and price floor. According to one of the ten principles of economics
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BUSINESS IN THE INTERNATIONAL ECONOMY ASSIGNMENT – 1 PART – A 1. If demand price elasticity measures 5‚this implies that consumers would: Ans: 2. Economic profit is: Ans: 3. In the long run‚ a monopolistic competitive firm will operate at a price that: Ans: 4. Which of the following would NOT be considered an example of foreign direct investment (FDI)? Ans: 5. In terms of international business‚ market globalization can be viewed as a ------------. Ans: 6. Which of the following statements
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corporate bonds? 13. An income elasticity (Ey) of 2.0 indicates that for a ____ increase in income‚ ____ will increase by ____. 14. An increase in each of the following factors would normally provide a subsequent increase in quantity demanded‚ except: 15. Which of the following would tend to make demand INELASTIC? 16. If demand were inelastic‚ then we should immediately: 17. Marginal revenue (MR) is ____ when total revenue is maximized. 18. When demand elasticity is ____ in absolute value (or
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that when zinc battery sales picked up in 2009‚ there is a drop in alkaline battery sales. This means people started to have money‚ and buying more zinc batteries‚ which are cheaper. This can be explained more in terms of income elasticity of demand. Income elasticity of demand is the responsiveness of demand to changes in income. People tend to spend more on goods
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supply B A decline in the number of firms in the tire industry will decrease supply C Increase in the price of rubber will make supplies high due to passing the price on to the consumer D Supplies will be less E Supply is more since more people are buying more tires for big trucks F Supply of tires will be more G Supply of tires will be less Chapter 4 3. What are the major determinants of price elasticity of demand? A Bottled Water-Elastic B Toothpaste-inelastic C Crest-Elastic D Ketchup-Inelastic E Diamond
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FMCG Concept and Definition: The term FMCG (fast moving consumer goods)‚ although popular and frequently used does not have a standard definition and is generally used in India to refer to products of everyday use. Conceptually‚ however‚ the term refers to relatively fast moving items that are used directly by the consumer. Thus‚ a significant gap exists between the general use and the conceptual meaning of the term FMCG. Further‚ difficulties crop up when attempts to devise a definition
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