Diversification Diversification can be briefly defined as the expansion of a firm into a range of different product areas. Firms may choose to diversify for either of two reasons. First‚ diversification may benefit the firm’s owners by increasing the efficiency of the firm. Second‚ if the firm’s owners are not directly involved in deciding whether to diversify‚ diversification decisions may reflect the preferences of the firm’s managers. Singapore Airlines (SIA) serves as a typical example of diversification
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Meaning and Definition of Market Market generally means a place or a geographical area‚ where buyers with money and sellers with their goods meet to exchange goods for money. In Economics market refers to a group of buyers and sellers who involve in the transaction of commodities and services. Characteristics of a market 1. Existence of buyers and sellers of the commodity. 2. The establishment of contact between the buyers and sellers. Distance is of no consideration if buyers and sellers could
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Green is the New Black Majora Carter grew up in the Bronx. In late 1940s‚ her father‚ a Pullman porter‚ son of a slave‚ bought a house in the Hunts Point section of the South Bronx in pursue of an American Dream. There was soon racism‚ disinvestment‚ red lining on the areas where they lived. Later on they faced bigger problems when Robert Moses‚ one of the key builders of New York City‚ decided to expand the highway. The primary goal of the highway was to make it easier for the residents of wealthy
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MBA MANAGERIAL ECONOMICS Arcadia IMBA Module 2 University Wide Individual Assignment (UWIA) 12th July 2013 PROBLEM SET #1 1. Complete the following table and answer the accompanying questions. a. At what level of the control variable are net benefits maximized? Net Benefit is also profit. The formula for this is MB = MC. As seen in the table completed above‚ after applying the formula then net benefit is maximized where Q = 106. b
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hires another unit of L and less than four more units of K‚ then output does not increase. If the firm hires another unit of L and more than four more units of K‚ then output rises by the same as if just four more units of K were purchased with the new unit of L.) Suppose that L costs the firm $90 per unit employed and K costs the firm $180 per unit employed. Given cost minimizing employment of the inputs‚ output is given by: Q =3L½. A. (7 pts.) Find the equation for minimized total cost in the
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suppliers incur and minus the costs of using the firm’s own assets. To increase value created‚ the company increases benefits to its customers‚ lowers costs of its suppliers‚ uses its resources more effectively‚ or combines suppliers and customers in new or more efficient ways. The firm’s ability to create and capture value depends on the strength of competition and the characteristics of the firm. In markets where customer demand outruns industry capacity‚ many firms can add value. In markets where
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Cabo san viejo – rewarding loyalty? Cabo san viejo is currently facing a problem of increasing competition and customer retention. To solve this‚ there is a dilemma of adopting a loyalty program or not. However our mission is only to meet competition and increase sales and not to resort to loyalty programs. We considered the following factors before deciding against choosing a loyalty rewarding program. facts In a survey‚ of 2500 Americans nearly 50% of the loyalty program members said that
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successfully for 71 years. The organizations primary financing services pertained to commercial real estate and business loans. In 1946‚ the company decided to incorporate a subsidiary business to manufacture forestry and construction equipment. The new company‚ Future Growth Incorporated‚ became the Thomas Money Service’s sole brand of merchandise. In 1951‚ the newfound company purchased a suitable manufacturing facility to produce its products. The timing in which the company diversified its financial
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Version 18 October 2007 Managerial Economics – Concerned with the application of economic principles and methods to the decision making process under conditions of uncertainty. Theory Tools: Micro Economics‚ Statistics‚ Econometrics (OLS) Software and Decision Support Tools: Excel‚ Matlab‚ B34S Goal: Develop a systematic and reproducible decision making strategy. Common Tasks facing a Modern Manager: Whether to lease or buy equipment? How to determine the shape of the cost curve
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CHAPTER 10: PURE MONOPOLY Pure monopoly – single firm is the sole producer of a product for which there are no close substitutes; characteristics: * Single seller – sole producer or sole supplier; firm and industry are synonymous * No close substitutes – consumer who chooses not to buy the monopolized product must live without it * Price maker – pure monopolist controls the total quantity supplied‚ so has considerable control over the price; changes product price by changing quantity
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