Managerial Economics

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MG 640 Managerial Economics
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Homework Assignment | Week 1 Chapter 1: The Fundamentals of Managerial EconomicsFor this week read Chapter 1 and the Headline: Amcott Loses $3.5 Million: Manager Fired.Answer the following questions:Question 1. Page 27Levi Strauss & Co. paid $46,532 for a 110-year-old pair of Levi’s jeans-the oldest known pair of blue jeans-by outbidding several other bidders in an eBay Internet auction. Does this situation best represent: a) Producer-producer rivalry? b) Consumer-consumer rivalry? c) Producer-consumer rivalry?This scenario can best be represented by Consumer-consumer rivalry in such; Levi Strauss & Co was willing to pay the highest price for the scarce good which was the antique blue jean by outbidding other consumer.Top of Form d) Bottom of FormQuestion 2. Page 27What is the maximum amount you would pay for an asset that generates an income of $150,000 at the end of five years of the opportunity cost of using funds is 9 percent?PV=150,000 + 150,000 + 150,000 + 150,000 + 150,000 1 + 0.09 (1 + 0.09)2 (1 + 0.09)3 (1 + 0.09)4 (1 + 0.09)5= $583,447.69 e) What are her accounting profits? Show your work f) What are her economic profits? Show your work!Question 21. Page 32 Brazil points to its shrimp-farming industry as an example of how it can export shrimp in the world market. One decade ago, Brazil exported a meager 400 tons of shrimp. Today, Brazil exports more than 58,000 tons of shrimp, with approximately one-third of that going to the United States. Brazilian shrimp farmers however, potentially face a new challenge in the upcoming years. The Southern Shrimp Alliance- a U.S. organization representing shrimps-producing countries is selling shrimp below “fair market value.” The organization is calling for the United

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