managerial economics michael baye

... SEMESTER 2013 MANAGERIAL ECONOMICS – BMME5103 ASSIGNMENT (60%) Question Read the following information and answer the questions

Ngày tải lên: 05/03/2014, 15:57

... of Demand and Supply The Law of Demand 10 0 The Market Demand Curve 10 2 ix Contents Other Determinants of Market Demand 10 6 The Market Demand Equation 11 0 Market Demand Versus Firm Demand 11 2 The ... first PV (p1 ) = Â PV (p ) = Â pt (1 + i) t = $10 0 $330 + = $363.64 1. 1 (1. 1) t = $300 $12 1 + = $372.73 1. 1 (1. 1) pt (1 + i) How Realistic is The Assumption of Profit Maximizat...

Ngày tải lên: 14/08/2014, 22:21

... a minimum are given by: 2 y = f11 > ∂x 12 (2. 82a) 2 y = f 22 > ∂x 22 (2. 82b) 2 2 Ê ∂ yˆÊ ∂ yˆ Ê ∂ y ˆ = f11 f 22 - f 12 > ¯Ë ¯ Ë ∂x1 ∂x2 Ë ∂x1 ∂x2 ¯ (2. 82c) Example Consider once again our sales ... 2 y = f11 < ∂x 12 (2. 81a) 2 y = f 12 < ∂x 22 (2. 81b) 2 2 Ê ∂ yˆÊ ∂ yˆ Ê ∂ y ˆ = f11 f 22 - f 12 > ¯Ë 2 Ë ∂x1 ∂x2 Ë ∂x1 ∂x2 ¯ (2. 81c) The second-order conditions for a mini...

Ngày tải lên: 14/08/2014, 22:21

... point-price-elasticities of demand at P = $4 and P = $3 are -12 e p (P = $4) = -3 ˆ = = -0.9 23 Ë 13 ¯ 13 -9 e p (P = $3) = -3 ˆ = = -0.5 63 Ë 16 ¯ 16 At both prices, demand is price inelastic, since -1 ... for Q1 and Q2 yields Q1 = 25 - 3( 4) = 25 - 12 = 13 Q2 = 25 - 3( 3) = 25 - = 16 Substituting these results into the expression for arc-price elasticity of demand yields (16 - 1...

Ngày tải lên: 14/08/2014, 22:21

... 4, 340 .67 $10,000.00 8,000.00 6 ,40 0.00 5,120.00 4, 096.00 3,276.80 2,621 .44 2,097.15 1,677.72 $10,000.00 7,000.00 4, 900.00 3 ,43 0.00 2 ,40 1.00 1,680.70 1,176 .49 823. 54 576 .48 In the case of labor, for ... unchanged  248 Cost TABLE 6.1 Learning Curve Effects: Unit Labor Costs Output m = 0.9 m = 0.8 m = 0.7 16 32 64 128 256 $10,000.00 9,000.00 8,100.00 7,290.00 6,561.00 5,9 04....

Ngày tải lên: 14/08/2014, 22:21

... 5( 501) TR* = 5, 010, 000 - 1, 255 , 0 05 = $3, 754 , 9 95 Royalty = 0.1(3, 754 , 9 95) = $3 75, 499 .50 If Wren and Skimpy choose the second contract, their royalties will be p* = -10, 000 + 10, 020 (50 1) ... p = -Q3 + 7.5Q2 - 12Q - = -(4)3 + 7 .5( 4)2 - 12(4) - = -64 + 120 - 48 - = $6 c Total revenue is defined as TR = PQ = 45Q - 0.5Q = ( 45 - 0.5Q)Q Thus, P = 45 - 0.5Q = 45 - 0 .5...

Ngày tải lên: 14/08/2014, 22:21

... 78,479 66 ,302 56, 994 158 ,66 8 42, 966 66 ,735 5,517 11, 061 24 ,63 2 98.9 94.5 91.1 89.7 86. 7 84.8 79.5 65 .6 59.8 59.2 52.5 45.4 32.7 28.5 37 .6 35 .6 31.9 17.4 16. 8 (D) (D) 98.0 93.4 94.7 96. 0 96. 3 77.9 83.3 ... 707 69 0 9 06 4,024 Value of shipments ($ millions) Largest companies Largest companiesa HHI for largest 50 companiesa 29,253 6, 128 4,198 18,203 6, 5 56 57,893 95...

Ngày tải lên: 14/08/2014, 22:21

... Adams, W J., and J I Yellen “Commodity Bundling and the Burden of Monopoly.” Quarterly Journal of Economics, 90 (August 1 976 ), pp 475 –498 Baye, M R., and R O Beil Managerial Economics and Business ... 20 - 2(1.304) = $ 17. 39 P2 * = 100 - 2(6.0 87) = $69.66 b Gizmo Brothers’s profit is 2 p = 20(1.304) + 100(6.0 87) - 2(1.304)(6.0 87) - 3(1.304) - 8(6.0 87) - 10 = $88. 17 456 p...

Ngày tải lên: 14/08/2014, 22:21

... (1. 08) = $549.41 NPVB = -5, 000 (1. 08) + + 1, 000 (1. 08) 1, 000 (1. 08) + + 2, 500 (1. 08) 2, 500 (1. 08) + + 3, 000 (1. 08) - 5, 000 (1. 08) 3, 000 (1. 08) = $80 8.61 Since NPVB > NPVA, Brian Borumha ... 000 (1. 08) - 2, 000 (1. 08) CF1 + (1 + k) + $1, 000 (1. 08) 1, 000 + (1. 08) CF2 (1 + k) + + + + $1, 500 (1. 08) - CF6 (1 + k) $2, 000 (1. 08) 1, 000 + (1. 08) 1, 500 + (1. 08) 1, 500 (1...

Ngày tải lên: 14/08/2014, 22:21

... Seller Buyer $100.00 $97 .50 $97 .75 $95 .36 $95 .83 Ӈ $50.00 $47.50 $47.75 $45.36 $45.83 Ӈ Ӈ $84 .91 $83.16 $84.84 $83.10 $34 .91 $33.16 $34.84 $33.10 $15. 09 $16.84 $15.16 $16 .90 $0.00 $2.50 $2.25 ... Managerial Economics and Business Strategy Boston: Richard D Irwin, 199 4 Besanko, D., D Dranove, and M Shanley Economics of Strategy, 2nd ed New York: John Wiley & Sons, 2000 Bier...

Ngày tải lên: 14/08/2014, 22:21

... F., L C Gapenski, and M C Erhardt Financial Management: Theory and Practice, 9th ed New York: Dryden Press, 1998 Davis, O., and A Whinston “Externalities, Welfare, and the Theory of Games.” Journal ... MCA Emission standard MCA 2* MCA 1* 15 .10 Emission standards and incomplete information FIGURE ␳* Pollution 710 Market Failure and Government Intervention FIGURE 15.11 Emiss...

Ngày tải lên: 14/08/2014, 22:21