to compute the firm’s value. c. the price for which the firm can be sold minus the present value of the expected future profits. d. both b and c 2 A price-taking firm can exert no control over price because a. the firm’s demand curve is downward sloping. b. of a lack of substitutes for the product. c. the firm’s individual production is insignificant relative to production in the industry. d. many other firms produce a product that is nearly identical
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University of Toronto Department of Economics (STG) ECO 204 2011 - 2012 Sayed Ajaz Hussain Lecture 1 © Sayed Ajaz Hussain‚ Department of Economics‚ University of Toronto‚ STG 1 Today About ECO 204 Motivational Example HBS Case: The Prestige Telephone Company Types of Optimization Methods in ECO 204 Unconstrained Optimization Evaluating change in optimal solution due to a small increase in a parameter Feedback? economics204@gmail.com © Sayed Ajaz Hussain‚ Department of Economics
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STRUCTURED HOMEWORK ASSIGNMENT 3 PART 1 Question 1 (A) First‚ invert the demand function QD= 8‚300 - 2.1P into the price function‚ so that price is on the left hand side on its own. QD= 8‚300 - 2.1P → 1QD/2.1 = 8‚300/2.1 – 2.1P/2.1 0.5QD = 3‚952.4 – P → P = 3‚952.40 – 0.5QD TR = P*Q → TR = (3‚952.40 – 0.5Q) *Q → TR = 3‚952.40Q – 0.5Q^2 MR = 3‚952.40 – Q (B) Profit = TR – TC Profit = 3‚952.40Q – 0.5Q^2 – (2‚200 + 480Q + 20Q^2) Profit = -2‚200 + 3‚472.40Q – 20.5Q^2 Marginal Profit = 3‚472
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1. Fukaku Footwear wished to estimate the demand function for its ‘Elite VS600’ women’s shoes. The company’s economist believed that the main determinants of ‘Elite VS600’ shoes are: i) ii) iii) iv) the price of the shoes (Px) the price of a competitor’s shoes Dr. Martin (Py) the price of another competitor’s shoes ‘Madame69’ (Pz) and disposable per capita income (Y) A regression was run by using SPSS package and the result is shown as follows: LS//Dependent Variable is Qx Variable Coefficient
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Indian customers visiting Shoppers’ Stop any different from customers developed western counties? 4) How should Shoppers’ Stop develop its demand forecasts? Caselet -2 5) Considering the concept of product life cycle‚ where would you put video games in their life cycles? 6) Should video games companies continue to alter their products to include other functions‚ such a e-mail? B-105 (Organizational Behavior) Caselet -1 1) How would you examine if there is any merit in the remarks of various functional
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The Applied Topics in Competition Policy Prof .Dr Jorn Sickmann Assignment III Submitted by: Siwani Adhikari Matriculation No: 11893 Sem:III Msc . Economics and Finance Hochschule Rhine Wall.Kleve Exercise 1 Given Demand function D = 100 – p When P0 = 50 Q0 = 100 – 50 = 50 Likewise when P1 = 70 Q1 = 100 – 70 = 30 When P0 = 52 Q0 = 100-52 = 48 a). Deadweight loss is given by A1 in the diagram And value of deadweight loss is given by ½( ΔP) Δ (Q) ½ (70 – 50) (30 – 50) = - 200 b). Cost saving
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Chapter 10 (Tentative Due Date: by November 1) Question 2: Discuss the major barriers to entry into an industry. Explain how each barrier can foster either monopoly or oligopoly. Which barriers‚ if any‚ do you feel give rise to monopoly that is socially justifiable? LO1 The major barriers to entry in an industry are economies of scale‚ legal barriers such as patents & licenses and other strategic or pricing barriers. Economies of scale occur only in large firms who are able to reach a minimum
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much product differentiation and becomes less competitive. Opportunities: Over 85% of ships carry iron ore and coal throughout the world. So the demand for iron ore and coal products is basically depends whether the economy is strong or not‚ which means a great deal of vessels are needed. Australian production and Indian Exports are creating long term demand. Threats: There is probability of defaulting of Charterer.
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Managerial Application—Reducing Consumer Transactions Costs: Kraft Lunchables Managerial Application—Terrorist Attacks Affect Value Creation in the Airline Industry Other Ways to Increase Demand Product Quality Price of Complements Historical Application—Giving Away Razors to Increase Demand for Blades Price of Substitutes Managerial Application—Airlines Restrict Cell Phone Use New Products and Services Managerial Application—Technology and Value Cooperating to Increase
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Examination Paper Semester I: Financial Management IIBM Institute of Business Management IIBM Institute of Business Management Semester-1 Examination Paper MM.100 Financial Management (B-103) Section A: Objective Type (30 marks) This section consists of multiple choice & Short Notes. Answer all the questions. Part One carries 1 mark each & Part two carries 5 marks each. Part one: Multiple choices: 1. The approach focused mainly on the financial problems of corporate enterprise a
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