Entire Course (Managerial Economics) Essay

Firm Objectives. wherefore do some credit line firms pursue a triple-bottom-line outcome firearm others focus only on profit maximization? Please, use a real genial club example to beautify your pointsDecision Making on a blueer floor Uncertainty. To save on gasoline expenses, Edith and Mathew agreed to carpool together for traveling to and from nominate. Edith like to travel on I-20 racyroad as it was usually the fastest, taking 25 minutes in the absence of affair delays. Mathew pointed out that relations jams on the highway can lead to long delays making the trip 45 minutes. He preferred to travel along Shea Boulevard, which was longer (35 minutes), but seldom had traffic jams. Edith agreed that in case of traffic jams, Shea Boulevard was a reasonable ersatz. Neither of them knows the state of the highway ahead of cadence. After thrust to name on the I-20 highway for 1 month (20 workdays), they found the highway to be jammed 3 times.Assuming that this month is a c andid representation of all months ahead, should Edith and Mathew continue to use the highway for traveling to work? How would you demonstration change for the winter months, if bad weather makes it likely for traffic jams on the highway to increase to 6 days per month? How would your conclusion change if Mathew purchased a spic-and-span smart-ph atomic number 53 app that could show the status of the highway traffic prior to their drive to apiece one morning, thus reducing the fortune of them getting into a jam down to only 1day per month (where on this day, the app showed no traffic jam, but a jam developed in the in the meantime as they were driving along the highway).Economics of Risk and Uncertainty employ Problems.Please, collar the by-line 3 applied problems in a ledger or exceed document. Show all your calculations and explain your results. insert your assignment in the throw box by using the denomination entry button. 1. A generous university benefactor has agreed to donate a bouffant amount of m adepty for student scholarships. The m unrivalledy can be pull up stakesd in one lump-sum of $10mln, or in parts, where $5.5mln can be earmarkd in family 1, and another $5.5mln can be provided in year 2. Assuming the opportunity interest rate is 6%, what is the present value of the warrant alternative? Which of the ii alternatives should be chosen and why? How would your decision change if the opportunity interest rate was 12%?Please, show all your calculations. 2. Volkswagen is considering opening an multitude Plant in Chattanooga, Tennessee, for the overlapion of its 2012 Passat, tailored for the US merchandise. The chief executive officer of the caller-out is considering two potential options for the size of the plant one is a rotund size with a projected annual production of 150,000 cars, and the other one is a smaller size plant, which is cheaper to build, but can only win up to 80,000 cars per year. Depending on the pass judgment level of gather up for these cars in the US, Volkswagen has to answer which option is more profitable. The discount rate is 6% and for simplicity purposes, the CEO is only evaluating a two-year horizon. The initial factory setup cost, the pass judgment de partd scenarios, profit, and probabilities argon shows in the below table. Calculate the Net evince Value in each of the two options. Which option should the CEO need and why? Please, show all your calculations.3. An nonsuch investor is considering investing in one of two start-up contrastes and is evaluating the expected returns along with the risk of each option in order to choose the better alternative. assembly line 1 is an innovative protein readiness drink, which has ENPV of $100,000 with a standard deviation of $40,000. Business 2 is a preposterous chicken wings dipping sauce with an ENPV of $60,000 and a standard deviation of $25,000. a) kick in the coefficient-of-variation decision criterion to the se alternatives to find out which is preferred by the angel investor, assuming that he/she is risk-averse. b) Apply the maximin criterion, assuming that the worst outcome in Business 1 is to lose $5,000, whereas the worst outcome in Business 2 is to make only $5,000 in profit. c) If you were the angel investor, what is your certainty similar for these two projects? Are you risk-averse, risk-neutral, or risk-lover?Week 2Marginal cast of Substitution.What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitutes one product for another? subroutine examples to illustrateDemand Elasticity.Please, read the name Hainer, R. (2010), provided in the necessitate readings section for this week. The tobacco persistence is a thrill example to consider when talking about expense snapshot of take aim. while nicotine use can be habit-forming for many users, it is not addictive for the so-called social smokers. What can we say about the determine expansileity of demand for nicotine products (such as cig arettes, pipes, tobacco) in the group of nicotine addicted users, versus the group of social smokers? Can we say whose demand is likely to be more elastic? Why?Consumer Demand Analysis and Estimation Applied Problems.Please, complete the following 3 applied problems in a Word or Excel document. Show all your calculations and explain your results. Submit your assignment in the drop box by using the Assignment Submission button. 1. Roshima is researching universities where she could study for her MBA degree. She is considering 3 major charges that she considers important in her choice rank, price, and location. The value she places on each attribute, however, differs according to whether she re importants full-time employed during her studies or quits her calling and focuses on her degree. If she continues to work full time and takes all her courses online, then ranking is the most important attribute, twice as important as price and three times as important as location. If she quits her meditate and attends school full time, then location becomes three times as important as ranking and twice as important as price.She is considering two universities, respectively, the MBA program at Arizona State University (ASU) and the MBA program at University of Phoenix (UOP), both of which are priced at approximately $25,000. She has rated each attribute on a scale of 1 to 100 for each of the two schools. a. Which of the two options should Roshima pursue of she wants to keep her full-time job? (Calculate the total expected utility from each school option and compare. Graph is not required) b. Which of the two options should she pick if she plans to quit her job and dedicate to her studies? c. Which option should she pursue if the probability of being laid off and unable to find a sassy job is estimated as 0.6? Show your calculations and explain your reasoning.2. The demand function for wizard Bagels has be en estimated as follows 40.73Px + 84.17Py + 0.55Ax where Qx represents thousands of bagels Px is the price per bagel Py is the average price per bagel of other brands of bagels and Ax represents thousands of dollars spent advertising hotshot Bagels. The current value of the independent shiftings are , , and a. Calculate the price elasticity of demand for geniuss Bagels and explain what it means. b. Derive an expression for the (inverse) demand curve for Einsteinss Bagels. c. If the cost of producing Einsteins Bagels is constant at $0.10 per bagel, should they reduce price and thitherafter, sell more bagels (assume profit maximization is the companys goal)? d. Should Einstein Bagels spend more on advertising?3. The consulting firm that you work for has been chartered by the US Government to provide an independent analysis of the demand-side cause of a contemplated increase in the tax on gasoline. They provide you with a data set relating to the period 1962-1987, which they s ay contains valuable historic lessons relating to the electric shock of volatile pump prices due to the supply restrictions imposed by the arrangement of Petroleum Exporting Countries (OPEC), and the Corporate Average Fuel Economy (CAFE) regulations that required car manufacturers to increase the fuel efficiency of the cars they sold, while at the identical time Real Disposable Income (RDI) per capita was rising, the number of passenger cars (NPC) almost doubled, and ostentatiousness was pushing up the Consumer Price Index (CPI).Week 3relevant Costs.Two partners own together a small landscaping business in North Carolina, called Summer Lawn Care. They confine been specializing in summer hummer seeding, installation, and primary(prenominal)tenance. Recently, the partners acquired special technology and know-how for winter grass installations and maintenance. They also added a steer cutting service as new storms in the area had caused demand for this service to soar. One of the partners insists that the name of the business should change to Lawn and Tree Care, so that it better reflects the range of services and, thus, generates more customer interest, and thus set outs. The second partner wants to keep the old name and argues, We have already remunerative for business cards, vehicle paint, signage, and ads in Yellow Pages. Evaluate the arguments of the two partners. apologize and illustrate their points by identifying the relevant and irrelevant costs for this decision.Contribution Analysis. explicate what is meant by contribution analysis. Carefully define the term and provide examples to illustrate it.Production Cost Analysis and Estimation Applied Problems.Please, complete the following 3 applied problems in a Word or Excel document. Show all your calculations and explain your results. Submit your assignment in the drop box by using the Assignment Submission button. 1. Jennifer hauling Company operates a large rig transportation business in T exas that transports locally braggart(a) vegetables to San Diego, California. The company owns 5 large rigs and hires local drivers paid fixed salaries monthly, regardless of the number of trips or tons of cargo that each driver transports each month. 2. The Palms Dry Cleaning Shop in assemble Lauderdale, Florida, faces a highly seasonal demand for its services, as the snow-birds retirees flock to Florida in mid-fall to enjoy the mild winter weather and then return to their main homes in mid-spring. Given this seasonality, Palms tries to keep the overhead costs as low as possible and therefore, often uses seasonal contracted labor to man its operations.The following table shows the labor costs in each month of operation over the past 12 months as well as the total number of garments that were dry-cleaned in each month. Palms pays fixed advantage per hour to each employee, and we can assume that the costs of other variable inputs (such as chemicals, electricity, etc) have remaine d constant. 3. Over the past 12 months the Four Winds nicknack Company firm has recorded its internet sales (equals monthly fruit levels) and its monthly total variable costs (TVC) for a particular gewgaw item as shown in the following table. Sales have grown over this period with relatively few shocks due to uncontrollable weather, political and sporting events. This online retailer carries no inventories when it receives a pre-paid on-line order from a customer, it simply buys the product from a supplier and ships it out to the customer.Week 4strategic Behavior Oligopolies. An interesting example of strategic behavior comes from a 1997 article about Microsofts investment in apple (New heading Times, 1997). The article is included in the Required Readings list. Facing tough anti-trust testing from government agencies, Microsoft provided financial support to Apple in order to check out Apples survival and, therefore, to ensure that competitiveness in the industry remains . Moreover, the partnership with Apple provided an additional market for Microsofts products the MS magnate and the IE products were to be bundled with the MAC OS as one of the conditions for this financing. reason this case in the context of market structure and strategic behavior. What market structure do these firms operate in? Why did Microsoft need to carry on competitiveness in the industry? What was Microsoft afraid of in the event that Apple did not survive?Local Market Power. Bulls Eye department memory board specializes in the sales of discounted clothing, shoes, theater items, etc. similar to the offerings at a regular Walmart or Target. Bulls Eye is the only department store in Show Low and the nearest other discount retailer is Target, set(p) 49 miles away in Eagar. Bulls Eye, therefore, has some market power in its local area. Despite having some market power, Bulls Eye is currently wo(e) losses. An analyst at Bulls Eye is recommending to the manager to raise pr ices, so that favorableness can be improved. The manager is unsure of this strategy as recent data points to increasing numbers of individuals shopping more and more. What are the pros and cons of airlift the prices at Bulls Eye and would that strategy be profitable?Market Structures and set Decisions Applied Problems. A 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 firms cost function is represented by + 2500Q -0.25*Q2. 2. Greener Grass Company (GGC) competes with its main rival, Better Lawns and Gardens (BLG), in the supply and installation of in-ground lawn watering organizations in the sozzled western suburbs of a major east-coast city.Last year, GGCs price for the typical lawn system was $1,995 c ompared with BLGs price of $2,100. GGC installed 9,130 systems, or about 55% of total sales and BLG installed the rest. (No doubt many additional systems were installed by do-it-yourself homeowners since the parts are readily available at hardware stores.)Week 5 computable Will in Price Bidding. Sometimes, a bidder on a work contract may bid lower than what would maximize his/her profit from the contract and the reason for that is to create goodwill (to increase expected future business from the buyer). How would you value the goodwill that is obtained in this way?New Product Introduction. aspirin Schering Pharma AG, Germany owns the Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. The Alka-Seltzer Plus was a spin-off of the original medicine, meant to relieve colds and flu. The company has recently representd a new and improved Alka-Seltzer Plus, as described in the TV ad The gelid Truth, (please, watch the ad listed in the Required Readings)Price Quotes and set Decisions Applied Problems. Please, complete the following 3 applied problems in a Word or Excel document. Show all your calculations and explain your results. Submit your assignment in the drop box by using the Assignment Submission button. Maxim Motronics A.G. have been marketing a new product in Europe that has achieved notable market success and it now plans to introduce this product into the United Statesmarket.Week 6Game Theory and Strategic Behavior. Suppose that GE is trying to prevent Maytag from entering the market for high efficiency clothes dryers. Even though high efficiency dryers are more costly to produce, they are also more profitable as they command sufficiently higher prices from consumers. The following payoffs table shows the annual simoleons for GE and Maytag for the advertising spending and entry decisions that they are facing. Based on this information , can GE successfully prevent Maytag from entering this market by increasing its advertising levels? What is the equilibrium outcome in this game? sustainable Competitive Advantage. Describe the circumstances under which a firm chooses a low-cost strategy to attain sustainable competitive advantage. What about the situations when a differentiation strategy is chosen? Provide specific real creation examples. Focus of the Final PaperResearch a specific company of your choice and identify some of the managerial decisions that were made over time and in response to changes in its market or competitive environment. Use the Ashford University Online Library and web-based sources for your research. At least three external scholarly sources must(prenominal) be used. Address all of the following areas Describe the company and provide a brief history of its operations. Find or use graphs to illustrate its financial performance over the years. Identify any sources of risk or uncertainty in i ts operations. Do the financial reports indicate risky or uncertain activities or changes to the economic environment that ultimately appear to have affected the companys financial outcomes? Be specific. Are there any government regulations that have affected this companys operations domestically or abroad? Explain.