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    Managerial Economics

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    EXECUTIVE SUMMARY The Minimum Wage Ordinance Cap. 608 is an ordinance enacted by the Legislative Council of Hong Kong to introduce a minimum wage in Hong Kong in July 2010. The executive branch proposed a minimum wage of HK$30 (~US$3.871) per hour in November 2010‚ which the Legislative Council voted to accept after much debate in January 2011. It came into effect on 1 May 2011. Prior to this‚ there had also been a fixed minimum wage for one specific class of workers‚ foreign domestic

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    firms’ actions geographical location and the firm’s discretionary policies should be taken into account and asses their impact on the firm’s cost levels. Learning effects and spill overs suggest that the cost of a value activity often declines over time due to the learning or improvements that increase efficiency or due to knowledge acquired from suppliers‚ consultants‚ former employees or reverse engineering. These savings derive from “learning by doing”. According to GHEMAWAT (1985)‚”increased efficiency

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    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: In economics‚ inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. It can be defined as too much money chasing too few goods. When the general price level rises‚ each unit of currency buys fewer goods and services. Consequently‚ inflation reflects a reduction

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    it is about the allocatiOn of Bearce resources. For example‚ microeconomics explains how consumers can best allocate their limited incomes to the various goods and services available for purchase. It explains how workers can best allocate their time to labor instead of leisure‚ or to one job instead of another. And it explains how firms can best allocate limited financial resources to hiring additional workers versus buying new machinery‚ and to producing one set of products versus another

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    Time Warner Case Study

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    Case Summary The merger of AOL-Time Warner hit rock bottom in January 2003‚ when the Company posted a loss of $98.7 billion for 2002‚ the largest corporate loss in US history. Being an employee of the company‚ TJ (we) have to give fact-based answers to Memos‚ which are assigned to us. In 2000‚ AOL purchased Time Warner for $164 billion‚ resulting in formation of AOL Time Warner. FCC‚ Federal Trade Commission and European Commission approved the deal a year later. AOL owned 55% of the new company

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    Managerial Economics

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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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    Aol Time Warner Merger

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    versailleAOL Time Warner Inc. – A Bad Idea from the Start? 1. What are the opportunities and threats facing AOLTW (PESTEL analysis)? Pestel analysis:   | LOCAL | NATIONAL | GLOBAL | POLITICAL |   |  The antitrust law is rising. |  The government wants to have a more powerful control to avoid monopoly. | ECONOMIC |  For AOL it was the top of the internet boom. |  The economy start to be hard and slow‚ as show the problem that warner is facing. | AOLTW will take the explode of the internet

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    SUPPLY supply curve - in economics‚ graphic representation of the relationship between product priceand quantity of product that a seller is willing and able to supply. Product price is measured on the vertical axis of the graph and quantity of product supplied on the horizontal axis. In most cases‚ the supply curve is drawn as a slope rising upward from left to right‚ since product price and quantity supplied are directly related (i.e.‚ as the price of a commodity increases in the market‚ the

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    Price Elasticity: Price Elasticity is used to explain the degree of responsiveness of the demand for a product to a change in its price. Ep=Percentage change in quality demanded/Percentage change in price (Ep=Price Elasticity) Practical applications of Price Elasticity: 1) Helps in fixing the prices of different goods: It helps a producer to fix the price of his product. A higher price is charged if the demand for the product is inelastic and a lower price is charged if the demand for the product

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    price ceiling of $3 will result in a A. B. C. D. shortage of 30 units. shortage of 15 units. surplus of 30 units. surplus of 12 units. 2. In a competitive market‚ the market demand is Qd = 60 - 6P and the market supply is Qs = 4P. The full economic price under a price ceiling of $3 is A. B. C. D. 6. 7. 8. 9. 3. The buyer side of the market is known as the: A. B. C. D. income side. demand side. supply side. seller side. 4. The law of demand states that‚ holding all else constant:

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