Entire Course (Managerial Economics) Essay

Firm Objectives.Why do approximately business firms pursue a triple-bottom-line take while new(prenominal)s focus only on advantage maximization? Please, use a real company example to decorate your pointsDecision Making Under Uncertainty. To relieve on gasoline expenses, Edith and Mathew concur to carpool unneurotic for travel to and from work. Edith preferred to travel on I-20 highway as it was usu eithery the fastest, fetching 25 minutes in the absence of transaction delays. Mathew pointed out(a) that traffic great deals on the highway can lead to commodious delays making the trip 45 minutes. He preferred to travel along Shea boulevard, which was extended (35 minutes), but r arly had traffic jams. Edith agreed that in eluding of traffic jams, Shea Boulevard was a reasonable alternative. Neither of them knows the domain of the highway ahead of time. After cause to work on the I-20 highway for 1 calendar calendar month (20 workdays), they found the highway to be ja mmed 3 times.Assuming that this month is a good representation of each(prenominal)(prenominal) months ahead, should Edith and Mathew continue to use the highway for traveling to work? How would you conclusion revision for the pass months, if bad wear makes it likely for traffic jams on the highway to attach to 6 days per month? How would your conclusion smorgasbord if Mathew purchased a new smart-ph unity app that could show the office of the highway traffic prior to their endeavour individually(prenominal) morning, so reducing the hazard of them getting into a jam drink down to only 1day per month (where on this day, the app showed no traffic jam, but a jam developed in the meantime as they were driving along the highway).Economics of fortune and Uncertainty Applied Problems.Please, free the next 3 applied problems in a sacred scripture or stand out document. acquaint all your calculations and explain your results. conduct your appointment in the drop cuff by development the Assignment entering button. 1. A generous university benefactor has agreed to donate a walloping amount of bullionfor student scholarships. The m cardinaly can be digestd in one lump-sum of $10mln, or in part, where $5.5mln can be provided in class 1, and an early(a) $5.5mln can be provided in year 2. Assuming the opportunity reside rate is 6%, what is the present respect of the second alternative? Which of the 2 alternatives should be elect and why? How would your decision potpourri if the opportunity interest rate was 12%?Please, show all your calculations. 2. Volkswagen is catching opening an fiction Plant in Chattanooga, Tennessee, for the carrefourion of its 2012 Passat, adapt for the US securities industryplace. The CEO of the company is considering both potential creams for the coat of the plant one is a large size with a projected annual proceedsion of 150,000 cars, and the other one is a minuscul arer size plant, which is cheaper to b uild, but can only fire up to 80,000 cars per year. Depending on the evaluate take of involve for these cars in the US, Volkswagen has to decide which preference is to a greater extent paying. The discount rate is 6% and for simplicity purposes, the CEO is only evaluating a two-year horizon. The initial factory frame-up cost, the expected pray scenarios, profit, and probabilities are shows in the below remit. Calculate the Net deport Value in distributively of the two options. Which option should the CEO choose and why? Please, show all your calculations.3. An apotheosis investor is considering commit in one of two start-up businesses and is evaluating the expected returns along with the risk of infection of each(prenominal) option in order to choose the get out alternative. profession 1 is an innovative protein talent drink, which has ENPV of $100,000 with a exemplar deviation of $40,000. Business 2 is a unique icteric wings dipping sauce with an ENPV of $60,000 and a standard deviation of $25,000. a) halt the coefficient-of-variation decision measurement to these 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 be pains aftermath 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 equivalent for these two projects? are you risk-averse, risk-neutral, or risk-lover?Week 2 peripheral Rate of Substitution.What is the marginal rate of refilling (MRS) and why does it diminish asthe consumer substitutes one product for another? Use examples to adornDemand Elasticity.Please, read the article Hainer, R. (2010), provided in the required readings section for this week. The tobacco attention is a prime example to consider when talking virtually footing ginger snap of consider. While nicotine use can be habit-forming for galo re(postnominal) users, it is not addictive for the so-called social smokers. What can we rank about the wrong elasticity of subscribe for nicotine products (such as cigarettes, pipes, tobacco) in the group of nicotine given users, versus the group of social smokers? Can we hypothesize whose demand is likely to be more elastic? Why?Consumer Demand outline and Estimation Applied Problems.Please, complete the hobby 3 applied problems in a Word or Excel document. image all your calculations and explain your results. Submit your naming in the drop box by using the Assignment Submission button. 1. Roshima is researching universities where she could sketch for her MBA degree. She is considering 3 major allots that she considers grave in her weft ranking, price, and localisation of single-valued function. The value she places on each attribute, however, differs according to whether she remains full-time engaged during her studies or quits her furrow and focuses on her degr ee. If she continues to work full time and takes all her courses online, then ranking is the most all important(p) attribute, twice as important as price and three times as important as location. If she quits her business 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 course of instruction at Arizona State University (ASU) and the MBA plan 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 assembly line? (Calculate the come in 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 bank line and dedicate to her studies? c. Which option should she pursue if the pr obability of being laid off and ineffectual to find a new job is estimated as0.6? Show your calculations and explain your reasoning.2. The demand function for champion Bagels has been estimated as follows 40.73Px + 84.17Py + 0.55Axwhere 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 worn out(p) ad flair Bagels. The current value of the free-living variables are , , and a. Calculate the price elasticity of demand for Einsteins 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 shrivel price and thereafter, 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 hired by the US Government to provide an indep endent analysis of the demand-side effects of a contemplated append in the tax on gasoline. They provide you with a data set relating to the flowing 1962-1987, which they say contains valuable historic lessons relating to the impact of volatile pump prices due to the tally restrictions imposed by the Organization of petroleum Exporting Countries (OPEC), and the Corporate Average raise Economy (CAFE) regulations that required car manufacturers to increase the fuel efficiency of the cars they s honest-to-god, while at the same time Real disposable Income (RDI) per capita was rising, the bend of passenger cars (NPC) almost doubled, and pomposity was pushing up the Consumer Price business leader (CPI).Week 3Relevant embodys. both partners own together a small landscaping business in northeasterly Carolina, called Summer Lawn Care. They capture been specializing in summertime grass seeding, installation, and maintenance. Recently, the partners acquired special technology and k now-how for spend grass installations and maintenance. They as well as added a head cutting wait on as new storms in thearea 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 cheat of services and, thus, generates more customer interest, and thus perplexs. The second partner wants to keep the old name and argues, We take on already paid for business cards, vehicle paint, signage, and ads in chickenhearted Pages. Evaluate the arguments of the two partners. Explain and expound their points by identifying the relevant and irrelevant cost for this decision.Contribution Analysis.Explain what is meant by persona analysis. Carefully define the terminal and provide examples to illustrate it.Production Cost Analysis and Estimation Applied Problems.Please, complete the spare-time activity 3 applied problems in a Word or Excel document. Show all your calculation s and explain your results. Submit your assignment in the drop box by using the Assignment Submission button. 1. Jennifer Trucking family operates a large rig transportation business in Texas that transports locally grown vegetables to San Diego, California. The company owns 5 large rigs and hires local drivers paid frosty salaries periodical, regardless of the number of trips or piles of cargo that each driver transports each month. 2. The Palms Dry Cleaning Shop in Fort 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 be as low as workable and therefore, often uses seasonal contracted prod 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-cle aned in each month. Palms pays fixed wages per hour to each employee, and we can assume that the costs of other variable inputs (such as chemicals, electricity, etc) have remained constant. 3. everyplace the past 12 months the Four Winds glow Company firm has recorded its earnings sales (equals monthly output levels) and its monthly total variable costs (TVC) for a particular novelty item as shown in the following table. Sales have grown over this period withcomparatively few shocks due to uncontrollable weather, regimeal and sporting events. This online retailer carries no inventories when it receives a pre-paid on-line order from a customer, it just buys the product from a supplier and ships it out to the customer.Week 4Strategic port Oligopolies. An interesting example of strategic demeanour comes from a 1997 article about Microsofts investment in orchard apple tree (New head word Times, 1997). The article is included in the mandatory Readings list. Facing tough anti-tru st scrutiny from disposal agencies, Microsoft provided financial support to Apple in order to ensure Apples survival and, therefore, to ensure that combativeness in the perseverance remains. Moreover, the partnership with Apple provided an supererogatory market for Microsofts products the MS piece and the IE products were to be bundled with the MAC OS as one of the conditions for this financing. Discuss this case in the context of market complex body part and strategic behavior. What market structure do these firms operate in? Why did Microsoft accept to preserve competitiveness in the industry? What was Microsoft afraid of in the event that Apple did not survive?Local merchandise Power. Bulls inwardness department entrepot specializes in the sales of discounted clothing, shoes, household items, etc. similar to the offerings at a regular Walmart or Target. Bulls Eye is the only department store in Show Low and the nearby other discount retailer is Target, placed 49 mi les away in Eagar. Bulls Eye, therefore, has somewhat market power in its local area. Despite having some market power, Bulls Eye is currently suffering losses. An analyst at Bulls Eye is recommending to the managing director to raise prices, so that profitability can be improved. The manager is unsure of this schema as new-fangled data points to increasing numbers of individuals shop more and more. What are the pros and cons of raising 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 attack household dishes hasa 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 ma in rival, Better Lawns and Gardens (BLG), in the offer and installation of in-ground lawn watering systems in the affluent western suburbs of a major east-coast city.Last year, GGCs price for the typical lawn system was $1,995 compared 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 near Will in Price Bidding. Sometimes, a bidder on a work contract may bid lower than what would maximise his/her profit from the contract and the reason for that is to bring in goodwill (to increase expected future tense 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 mild aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. The Alka-Seltzer Plus was a bear of the original medicine, meant to relieve colds and flu. The company has recently introduced a new and improved Alka-Seltzer Plus, as described in the TV ad The Cold Truth, (please, watch the ad listed in the Required Readings)Price Quotes and Pricing 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 6 venture Theory and Strategic Behavior. Suppose that GE is trying to prevent Maytag from entering the market for high efficiency clothes dryers. tied(p) though high efficiency dryers are more costly to produce, they are also more profitable as they verify sufficiently higher prices from consumers. The following payoffs table shows the annual profits for GE and Maytag for the advertising spending and entry decisions that they are facing. ground 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 warring 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 human beings examples. Focus of the Final Paper look for a specific company of your choice and identify some of the managerial decisions that were make over time and in answer to changes in its market or competitive milieu. Use the Ashford University Online Library and web-based sources for your research. At least three external scholarly sources moldiness be use d. 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 slaying over the years. Identify any sources of risk or uncertainty in its operations. Do the financial reports indicate risky or uncertain activities or changes to the economic environment that ultimately appear to have bear upon the companys financial outcomes? Be specific. Are there any government regulations that have affected this companys operations domestically or afield? Explain.