Dr. Palamuleni Managerial Economics Application 1 Chapter 1 and Chapter

  

Dr. Palamuleni     

Managerial Economics 

Application 1

Chapter 1 and Chapter 2  (30 points)

Instructions: Please feel free to type responses or submit handwritten responses to questions below. In either case, I would like you to submit as either a word document or a pdf file. I strongly suggest you submit a PDF file since I cannot open some versions of word files. If you handwrite your responses, please scan them as pdf. Be sure to email me if you have any questions 

Chapter 1: Marginal Analysis

1. You are the manager of a firm that specializes in selling blue tooth headsets around the world. Your goal is to determine the number of headsets that the firm can produce in order to maximize profits. The total benefits (revenues) and costs to your firm of producing various quantities of headsets are given in the first three columns of the following table. Based on this scenario, complete the table, and answer the accompanying questions (8points)

  

Quantity   (H)

Total   Benefits

B(H)

Total   Costs

C(H)

Net   Benefits

NB(H)

Marginal   Benefits

MB(H)

Marginal   Cost

MC(H)

Marginal   Net Benefits

MNB(H)

 

0

0

0

 

1

200

10

190

200

10

190

 

2

380

30

350

279

24

255

 

3

540

60

480

411

48

363

 

4

680

100

580

542

82

460

 

5

800

150

650

660

126

534

 

6

900

210

690

762

180

582

 

7

980

280

700

845

244

601

 

8

1040

360

680

911

318

593

 

9

1080

450

630

956

402

554

 

10

1100

550

550

983

496

487

a. What level of headsets maximizes benefits? What level of headsets minimizes costs? What level of headsets maximizes net benefits?

b. What is the relation between marginal benefit and marginal cost at this level of H?

c. Using excel, graph the total cost and total benefit curves.

d. Using excel, on another graph, plot the points for the marginal cost, marginal benefit, and Marginal net benefit.  What are your observations? What level of H maximizes net benefits?

Chapter 2: Demand analysis (Assuming perfectly competitive market

 2 . If the demand for a good increases at the same time as the supply of the good decreases. What will happen to equilibrium prince and quantity of the good?

3 . Russian state television has imposed a temporary ban on all TV commercials. Your firm specializes in exports to Russia. 90 percent of its sales consist of consumer goods shipped to Russia. Your supervisor wants to know the likely impact of the ban on your firm’s operations. What do you tell her?

Effects of government policies on markets

4. Suppose the market for grass seed can be expressed as:

Demand: Qd = 200 – 5P

Supply: Qs = 40 + 5P

If the government collects a $5 specific tax from sellers (here you can change the supply equation to Qs = 40 + 5(P-t) or Qs = 15+ 5P

a) How much will the quantity demanded change from the amount demanded before the tax? 

b) What price will consumers pay after the tax? 

c) What price will sellers receive after the tax? 

d) What is the consumer surplus before tax

e) What is the consumer surplus after tax

f) What is the tax revenue? 

5.  Suppose the market for corn is given by the following equations for supply and demand:  Qs = 3p − 2

Qd = 10 − P

where Q is the quantity in millions of bushels per year and p is the price. 

a. Calculate the equilibrium price and quantity.

b. If a price floor is imposed at $5 per bushel, will there be a surplus or a shortage? What is the quantity of excess supply or demand that results? 

c. How does this price flo0r affect the total surplus?

6. Based on your analysis of Questions 4 and 5, how does government interventions on markets affect market outcomes (sales, prices and consumer welfare (economics surplus)). Is there a role of government in the markets discussed in chapter 2? Can you think of a situation where government intervening improves market outcome.  Please briefly discuss in a paragraph or two. 

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Romantism

Description the essay topic is: the romantics had a penchant for gothic and supernatural. draw a parallel between the romantic literature of this genre and modern horror/ fantasy/ science- fiction cinema. Explain the appeal of this kind of fiction and reasons why it remains popular today. the only requirement i

Please follow directions or I will dispute!! Will be checked

Please follow directions or I will dispute!! Will be checked for plagiarism  Develop a Port Improvement Plan (PIP) Presentation for a port of your choice. Do not include any secure, confidential or private information in your plan. Your PIP should include background about the port, its products and services, markets,

Answer the following using a “Short Essy” format. Write a

Answer the following using a “Short Essy” format.   Write a 200 – 300 word reaction for each.   Each reaction should include: Synopsis of the question, including key points. Your thoughts about what the question means and include whether or not you agree or disagree with the author if the topic

– using PICOT METHOD for research question – interrelationship between

–  using PICOT METHOD for research question –  interrelationship between theory, research and Evidence Base Practice.  – Identify and discuss the research question, sampling and sampling size, research design, hypothesis, data collection methods, and research findings .  -goals, health outcomes, and implementation strategies. – I need to discuss the credibility

Assume you have just been appointed to the position of

  Assume you have just been appointed to the position of portfolio manager for a multinational firm. The organization’s project success ratio has been dismal, and the executive board members appointed you because they feel that you are the type of individual that can make a difference. What is your

Compare and contrast the Fourth of July observances of racial, ethnic,

Compare and contrast the Fourth of July observances of racial, ethnic, and religious minorities during the nineteenth century. Must be double spaced with 1.25 inch margins and 12-point font. Essay must have an argument. Each paragraph must have a strong topic sentence. Each paragraph must use evidence to support its

Financial reporting is critical to the success of any organization

Financial reporting is critical to the success of any organization because this is how managers and other stakeholders evaluate the sustainability and profitability of an organization. The healthcare industry accounts for nearly 20% of the US GDP as of 2018 (BEA, 2019). While there is guidance for financial reporting to

When I was a volunteer EMT, sometimes we would try

When I was a volunteer EMT, sometimes we would try to predict what type of calls we would get that day and how many times that call would happen. Each prediction for a specific type of emergency would depend on the time of year and if there were certain events,

The Islamic Republic of Iran is paradoxical.

 The essay proposal is intended to be the preliminary, planning stage of your research essay. The purpose of this assignment is to ensure that you have a) chosen a suitable a topic and, within that topic, have b) formulated a reasonable argument, and c) found scholarly sources with which to

Pick three chapters from the book that interest you. In

Pick three chapters from the book that interest you. In detail explain something you learned from each chapter and how you may apply this information. Go into detail.  Some examples of how you can apply this information is: I will use this information in my home office by……. At work

Research Mental health treatment facility. 350- to 525-word summary. •

Research Mental health treatment facility. 350- to 525-word summary.  • Identify the facility • Describe services to be offered at the facility. • Describe population demographics of those who use the facility • Describe the facility type’s role in the health care industry, focusing on referral patterns • Describe key

What did you find particularly exciting, interesting, or challenging about

What did you find particularly exciting, interesting, or challenging about the assigned content this week?  Again, please remember to cite all of the required content. Your initial discussion post should be at least 250 words, you should answer all questions, and your responses to the discussion should be thoughtful and

Research and respond to the following 5 U.S. Supreme Court questions. Use academically appropriate websites for your research, and cite your sources. Each

Research and respond to the following 5 U.S. Supreme Court questions. Use academically appropriate websites for your research, and cite your sources. Each response should include at least 50 words, and you are encouraged to incorporate this week’s vocabulary terms into your responses.   1. How was the Supreme Court formed? 2. What powers are granted to

Exercise The threaded discussion will provide the student with the

The threaded discussion will provide the student with the opportunity to explore different topics, share what he/she is learning with classmates, and gain clarity about the content. This assignment reflects student centered independent learning. The student will:• Apply critical thinking through participation of selected topics• Engage in thoughtful discourse with

Global Citizenship

 Description What are your perspectives on globalization? How do you define global citizenship? Is it important to develop global citizenship? Why? What kinds of personality traits and skills does one need to develop global citizenship? From your perspective, what are some of the burning issues concerning the world today? Why?

USC Community Strategic Plan for Public Health Issue Nursing Assignment Help

For this assignment, you will research and prepare a community-level strategic plan that addresses a key public health issue. Potential topics may include: Using prenatal and infancy home visits to prevent child abuse and neglect Preventing falls in the elderly Reducing population salt intake Reducing tobacco use among adults Preventing

The report is a similar to the tech briefs developed

The report is a similar to the tech briefs developed by many professional tech analysts firms. It should provide a good over view of the technology, its history and evolution, its relative advantage, the supporting infrastructure and services needed to use the technology, standards, maturity of the technology and the