small business which produces plastic vacuum-suction covers for round household dishes has a monopoly that is protected by a utility patent. The market demand curve for this product is estimated to be: – 25P where Q is the number of plate covers per year and P is in dollars. Cost estimation processes have determined that the firm’s cost function is represented by + 2500Q -0.25*Q2. (i) What is the profit-maximizing price and output level? Solve this algebraically for equilibrium P and Q and also
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the inflation rate for 2011 and 2012. 2. Using the follwing specification to estimate China’s money demand function or the LM function: Note: The above modell is based on the Cagan type of money demand. Everything in the model except interest rate Rt (bond rate) is in logrithms. 2. Using data in the following tables *Table 1 to Table 4) to estimate China’s money demand function. Based on the IMF Financial Programming model‚ discuss China’s monetary policy. Table 1 Foreign
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cycle condition is also sufficient for optimality. The transportation problem is concerned with finding an optimal distribution plan for a single commodity. A given supply of the commodity is available at a number of sources‚ there is a specified demand for the commodity at each of a number of destinations‚ and the transportation cost between each source-destination pair is known. In the simplest case‚ the unit transportation cost is constant. The problem is to find the optimal distribution plan
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Inflation 2. A comprehensive formulation which specifies the factors that influence the demand for the product a. Market demand b. Demand schedule c. Demand function d. Income effect 3. It is computed when the data is discrete and therefore incremental changes is measurable a. Substitution effect b. Arc elasticity c. Point elasticity d. Derived demand 4. Goods & services used for final consumption is called a. Demand b. Consumer goods c. Producer goods d. Perishable goods 5. The curve at which satisfaction
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Making Supply Meet Demand in an Uncertain World by Marshall L. Fisher‚ Janice H. Hammond‚ Walter R. Obermeyer‚ and Ananth Raman Harvard Business Review Reprint 94302 HarvardBusinessReview MAY-JUNE 1994 M.L. FISHER‚ J.H. HAMMOND‚ W.R. OBERMEYER‚ AND A. RAMAN MAKING SUPPLY MEET DEMAND IN AN UNCERTAIN WORLD 94302 CHRISTOPHER MEYER HOW THE RIGHT MEASURES HELP TEAMS EXCEL 94305 CRAIG SMITH THE NEW CORPORATE PHILANTHROPY 94309 TODD B. CARVER AND ALBERT A. VONDRA
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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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much product differentiation and becomes less competitive. Opportunities: Over 85% of ships carry iron ore and coal throughout the world. So the demand for iron ore and coal products is basically depends whether the economy is strong or not‚ which means a great deal of vessels are needed. Australian production and Indian Exports are creating long term demand. Threats: There is probability of defaulting of Charterer.
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ittlefield Simulation #1: Capacity Management Team: Computronic When the simulation began‚ we quickly determined that there were three primary inputs to focus on: the forecast demand curve (job arrivals‚) machine utilization‚ and queue size prior to each station. Specifically we were looking for upward trends in job arrivals and queue sizes along with utilizations consistently hitting 100%. Upon initial analysis of the first fifty days of operations‚ the team noticed that Station 1 had reached
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Question 1 (a) Total Volume One of the most notable patterns of sales in regards to total sales volume is that it increases drastically when the average price of soup is low (Average price is calculated by dividing Category Volume by Category Dollars). Total sales volume had significantly increased when either Rocket Soup or competitors (or both) offer low price for promotion. In other words‚ soup consumption is relatively elastic to price‚ meaning that customers are highly sensitive to price.
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Managerial Application—Reducing Consumer Transactions Costs: Kraft Lunchables Managerial Application—Terrorist Attacks Affect Value Creation in the Airline Industry Other Ways to Increase Demand Product Quality Price of Complements Historical Application—Giving Away Razors to Increase Demand for Blades Price of Substitutes Managerial Application—Airlines Restrict Cell Phone Use New Products and Services Managerial Application—Technology and Value Cooperating to Increase
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