Place your answer on the answer sheet. There are 50 questions‚ each worth 2 points. 1) In 1985‚ Alice paid $20‚000 for an option to purchase ten acres of land. By paying the $20‚000‚ she bought the right to buy the land for $100‚000 in 1992. When she acquired the option in 1985‚ the land was worth $120‚000. In 1992‚ it is worth $110‚000. Should Alice exercise the option and pay $100‚000 for the land? A) Yes. B) No. C) It depends on what the rate of inflation was between 1985 and 1992
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1-2: Table: Barrels of Oil Barrel of Oil Produced 1 2 3 4 5 6 7 8 9 10 Total Revenue $50 100 150 200 250 300 350 400 450 500 Total Cost $4 10 21 38 61 90 126 176 266 390 Price $50 50 50 50 50 50 50 50 50 50 1. (Table: Barrels of Oil) Refer to the table. How many barrels of oil should the company produce to maximize profit? A) 6 B) 7 C) 8 D) 9 2. (Table: Barrels of Oil) Refer to the table. What is the marginal revenue of producing the fifth barrel of oil? A) 61 B) 50 C) 200 D) 250 3. Stating that
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University iTunes Music Pricing Adopting a variable pricing policy might increase the sales revenue of Apple’s Music Store. Pricing the more popular songs at a higher price and the less popular ones at a lesser rate would generate higher sales for the lesser popular ones. Thus making up for the slight drop in sales of expensive tracks and ultimately working towards overall increased revenues. Although most songs with a higher price point experienced nearly 21 % drop in sales‚ the 29 % increase
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FACULTY OF COMPUTER SCIENCE AND MATHEMATICAL STUDIES ECO 740: ECONOMIC ANALYSIS ASSIGNMENT 1 NAME : CAROLINE HENRY MATRIC NUMBER : 2014261072 FACULTY OF COMPUTER SCIENCE AND MATHEMATICAL STUDIES ECO 740: ECONOMIC ANALYSIS Assignment 1 Answer all questions Discussion Questions 1 Define what is economics and its relationship with the managerial economics. Economics is the study of human behaviour in producing‚ distributing and consuming goods and services in a scarce environment
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Marginal Revenue: Marginal Revenue can be termed as the change in the total revenue from an additional unit that is sold by a firm. Example‚ the total revenue when 10 units are sold is $50‚ and total revenue when 11 units are sold is $55. Marginal Revenue in this case will be (55-50)/(11-10) = $5. One can compute the total revenue if the marginal revue and the number of units sold. If the marginal revenue of a product is zero than the total revenue will not change with an increase in the number
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wants to sell more output‚ it must lower the price of its product. A monopoly’s marginal revenue will always be less than the price of the good (other than at the rst unit sold). 1. If the monopolist sells one more unit‚ his total revenue (P Q) will rise because Q is getting larger. This is called the output e ect. 2. If the monopolist sells one more unit‚ he must lower price. This means that his total revenue (P Q) will fall because P is getting smaller. This is called the price e ect. Remember that
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manufactures account for 75% of the worldwide tire production. The largest is Groupe Michelin from France‚ who markets the Michelin‚ Uniroyal‚ and BF Goodrich brands. The second-largest producer is Goodyear. Their biggest brands are Goodyear‚ Kelly-Springfield‚ Lee‚ and Douglas. Finally‚ Bridgestone Corporation‚ whose major brands are Bridgestone and Firestone‚ is a Japanese firm and the world’s third-largest producer. Consumer Behavior Demand for tires in the OEM is derived; meaning‚ tire volume
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Abstract The following paper discusses a business proposal on hair extensions. The proposal will include profit maximization strategy‚ how to increase revenue‚ entry into the market. The proposal will also look at product differentiation and the mix of pricing and non-pricing strategies to increase revenue as well as pricing and non-pricing strategies for hair extensions under the current business cycle in the United States economy. Lastly‚ the paper will look at business decisions
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Chapter 10 (Tentative Due Date: by November 1) Question 2: Discuss the major barriers to entry into an industry. Explain how each barrier can foster either monopoly or oligopoly. Which barriers‚ if any‚ do you feel give rise to monopoly that is socially justifiable? LO1 The major barriers to entry in an industry are economies of scale‚ legal barriers such as patents & licenses and other strategic or pricing barriers. Economies of scale occur only in large firms who are able to reach a minimum
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requested recommendations addressing how TMS can increase revenue‚ its ideal production levels‚ maximizing profit through fixed and variable costs in addition to reducing costs. Recommendations Increasing Revenue Increasing revenue is the goal and continuous effort of any organization regardless of how the economy is doing but it is most important in a declining economy. Thinking and planning strategically will assist any business in increasing revenue. Due to all of the natural disasters that have occurred
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