life. This leaves them with no choice but to ask for higher incomes. Hence the government tries to keep inflation under control. Contrary to its negative effects‚ a moderate level of inflation characterizes a good economy. An inflation rate of 2 or 3% is beneficial for an economy as it encourages people to buy more and borrow more‚ because during times of lower inflation‚ the level of interest rate also remains low. Hence the government as well as the central bank always strive to achieve a limited
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Appalachian Coal Mining believes that it can increase labor productivity and‚ there- fore‚ net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC = 40P where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction the marginal increase in revenue (MR) is MR =1‚000 =10P. How much pollution reduction should Appalachian Coal
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Megastore to advertise and for Superstore to advertise. for Megastore to advertise and for Superstore not to advertise. for Megastore not to advertise and for Superstore to advertise. for Megastore not to advertise and for Superstore not to advertise. 3. When the game does reach the Nash Equilibrium‚ the payoffs for both stores will be Megastore $95 and Superstore $80. Megastore $305 and Superstore $55. Megastore $65 and Superstore $285. Megastore $165 and Superstore $115. 4. If collusion were
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Chapter 3 Multiple Choice 1. What is externality a. Looking at a problem from an external view b. A private behavior that has broader social consequences* pg 56 c. Weighing the costs and the benefits of a decision d. F 2. Who deals with externalities in a market economy a. The government* pg 56 b. Local businesses c. Volunteers d. Individuals 3. Which one of these can you have property rights on a. House b. Car c. Inventions d. All of the above* pg 66 4. What is the average cost of bringing a new
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W. Cris Lewis MANAGERIAL ECONOMICS (Economics 4010) Business 302A T-TH 12:00-1:15 pm (Business 209) clewis@econ.usu.edu (CRN #10732) Office Hours: T-Th 10:00 a.m.–11:30 a.m. and by appointment Spring 2007 Text: H. Craig Petersen and W. Cris Lewis‚ Managerial Economics‚ 4th edition (New York: MacMillan) 1999 (Required) Workbook: H. Craig Petersen and W. Cris Lewis‚ Managerial Economics: Study Guide w/Software (New York: MacMillan) 1999 (Not required but useful and on reserve in the library). Course
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QUESTION 1: Angel plc is a listed industrial business and is considering a major investment. The investment projects team needs an appropriate rate at which to discount the estimated after-tax cash flow for the investment. Following the business’s normal practice‚ this is to be based on the weighted average cost of capital (WACC). Figures‚ relating to long-term financing‚ included in the business’s most recent balance sheet are: £m Ordinary shares of £0.50 each (160 million) 80 Share
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Problem Set #3: Edited Version Page 100 – Problems and Applications 1. The three functions of money are medium of exchange‚ unit of account‚ and store of value. Medium of exchange refers to money being accepted as everyday currency‚ that you can go into a store and be confident in the fact that they will accept your money for goods and services. Store of value is defined as the ability of money to retain its value of time; in other words‚ $100 today will be $100 tomorrow‚ next month or 6
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1: What is Managerial Economics.? Explain the nature and scope of Managerial Economics.? Answer: Managerial Economics generally refers to the integration of economic theory with business practice. While economics provides the tool which explain various concepts such as demand‚ supply‚ price‚ competition etc. Managerial economics applies these tools to the management of business‚ in this sense managerial economics is also understood to refer to business economics or applied economics. Managerial
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FALL SESSION – 2014 MASTER OF BUSINESS ADMINISTRATION- SEMESTER 1 ROLL No. : 1408000472 Nitin Baban Borkar MB 0042: Managerial Economics Q.1. Inflation is a global Phenomenon which is associated with high price causes decline in the value for money. It exists when the amount of money in the country is in excess of the physical volume of goods and services. Explain the reasons for this monetary phenomenon. Ans: Inflation is commonly understood as a situation of substantial and rapid increase
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Full Marks – 10 (10 x 1) 1. The GM of a set of five numbers is 2. The GM of a set of four numbers is 4. What is the GM of the numbers if both the sets considered together? 2. What do you mean by bi-modal incase of measures of central tendency? 3. If mean and SD are 50 and 10 then what is the value of Coefficient of Variation. 4. What is the empirical relationship between Mean‚ Median and Mode? 5. The mode always found at the highest point of a graph of a data distribution. (T/F) 6. For a
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