Assignment #1 1. Define scarcity and opportunity cost. What role d these concepts play in the making of management decisions? Scarcity is a condition that exists when resources are limited relative to the demand for their use. Another way of describing this condition is to state that scarcity exists when resources are not available in unlimited amounts. When resources are available in unlimited amounts‚ economists consider them to be “free” goods. Because of the scarcity of resources‚ choices
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between Economics and Managerial Economics. Managerial Economics is micro in character while Economics is both micro and macro in character. Economics is both positive and normative science but the Managerial Economics is essentially normative in nature. Under Economics we study only the economic aspect of the problems but under Managerial Economics we have to study both the economic and non-economic aspects of the problems. Those are just a few distinct differences amongst many others. Economics is defined
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health hazard! There is no nutritional value in soft drinks‚ only detrimental ingredients. They are full of sugar‚ most contain caffeine and they fill the stomach and take the place of good nutrients. Americans consume too many soft drinks and don’t drink enough of what our bodies need...Water! Not to mention the fact that they cause obesity. Soft drinks contain many unwanted particles and impurities. It also causes cancer. Soft drinks contain chemicals from Ajinomoto which are very harmful
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Benedictine University Managerial Economics Individual Work-1 Unit Tutor: Char Lee Racine Student name：Gu Haizhen (Vivian) Date of issue: September 6‚ 2010 Date of submission: September 13‚ 2010 Contents I. 3 II. 4 III. 7 VI. 9 Technical problems I. During a year of operation‚ a firm collects $175‚000 in revenue and spends $80‚000 on raw materials‚ labor expense‚ utilities‚ and rent. The owners of the
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Chapter 5 DEMAND ANALYSIS QUESTIONS & ANSWERS Q5.1 Q5.1 Is the economic demand for a product determined solely by its usefulness? ANSWER No‚ two basic conditions must be met before economic demand is created. First‚ there must be value associated with acquiring and using the good or service. For individuals‚ this value is in terms of utility‚ well being‚ or satisfaction through consumption. For firms‚ this value is measured in terms of the profit created through resource employment. Second‚ there
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QUESTIONNAIRE TO CONSUMER- 1.What is your monthly budget for consumption of drinks? Ans- Around Rs 300. 2 .Are you satisfied with the drinks available to you in the market? Ans- Yes‚ although different flavours would be appreciated‚ along with aerated fruit drinks. 3.Do you find the price range of these drinks to be appropriate?what is yan approximation of an ideal prioce? Ans- Not really. As it exceeds the budget if you generally eat out more than twice a week as is the case with most
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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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PBL 3 GSM 5000 MANAGERIAL ECONOMICS You have been appointed as a member of a consultation team who is working on this very important assignment for a soft drink company. The main task is to evaluate factors affecting the soft drink consumption. Therefore‚ you should revise the knowledge of demand analysis and carry out an investigation on the possible determinants of the demand for the product. The consultant should also describe the methodology of a multiple linear regression and its purpose
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come forward and therefore higher the surplus that will be for those who decide to undertake it. B. Frictional Theory of Economic Profits Economic profits or losses are frictional profit theory. It states that markets are sometimes in disequilibrium because of unanticipated changes in demand or cost conditions. Unanticipated shocks produce positive or negative economic profits for some firms. For example‚ automated teller machines (ATMs) make it possible for customers
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MBA MANAGERIAL ECONOMICS Arcadia IMBA Module 2 University Wide Individual Assignment (UWIA) 12th July 2013 PROBLEM SET #1 1. Complete the following table and answer the accompanying questions. a. At what level of the control variable are net benefits maximized? Net Benefit is also profit. The formula for this is MB = MC. As seen in the table completed above‚ after applying the formula then net benefit is maximized where Q = 106. b
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