ECO550
Week1 Discussion Latest 2017 August

Week 1 Discussion

“Supply
and Demand” Please respond to the following:

• From
  the scenario for Katrina’s Candies, examine the key factors affecting the
  demand for and the supply of a good in general and Katrina’s Candies
  specifically. Distinguish between a change in demand and a change in the
  quantity demanded (movement along the demand curve). Propose two (2)
  methods in which organizations that provide the good may utilize this
  information.

ECO550
Week 2 Discussion Latest 2017 August

Week 2 Discussion

“Estimating
Demand and Its Elasticities” Please respond to
the following:

• From
  the scenario for Katrina’s Candies, examine the procedure Herb will use to
  estimate the demand model developed in the scenario for Week 1. Analyze
  the elasticity of demand for products within the selected industry
  relevant to Katrina’s Candies. Determine the factors involved in making
  decisions about pricing these products that you believe to be the most
  influential.

ECO550
Week 3 Discussion Latest 2017 August

Week 3 Discussion

“Managing
in the Global Economy and Outsourcing Offshore” Please
respond to the following:

• From
  the scenario for Katrina’s Candies, assuming the absence of quantitative
  data, determine the qualitative forecasting techniques that could be used
  within this scenario. Now, assume you have acquired some time series data
  that would enable you to make forecasts. Ascertain the quantitative
  technique that will provide you with the most accurate forecast.
• When
  deciding whether or not to outsource offshore, list the key factors aside
  from maximizing profits that managers should consider. Determine the key
  factors that you believe to be the most influential.

ECO550
Week 4 Discussion Latest 2017 August

Week 4 Discussion

“Production
Economics and Decisions” Please respond to
the following:

• From
  the scenario for Katrina’s Candies, determine the relevant costs for the
  expansion decision, and distinguish between the short run and the long run
  costs. Recommend the key decision-making criteria that Katrina’s Candies
  should use for expansion decisions in the short run and in the long run.
  Determine under what conditions, a company should or should not continue
  to produce the good or service.

ECO550
Week 5 Discussion Latest 2017 August

Week 5 Discussion

“Market
Structures and Cost Management” Please respond to
the following:

• From
  the scenario for Katrina’s Candies, determine the appropriate type of
  market structure for the situation in question. Cite at least four (4)
  defining characteristics that have helped you reach this decision
  regarding the appropriateness of the chosen structure.
• Imagine
  that you are a manager of a chemical company. An accident has occurred in
  which chemicals leaked into the ground water nearby. The community is unaware
  of the accident. Compare the primary costs involved in cleaning up the
  water immediately (and thus confessing) versus hiding your culpability now
  and possibly paying more in the future. Predict the impact on
  profitability in both situations.

ECO550
Week 6 Discussion Latest 2017 August

Week 6 Discussion

“Market
Structures” Please respond to the following:

• From
  the scenario, assuming Katrina’s Candies is operating in the
  monopolistically competitive market structure and faces the following
  weekly demand and short-run cost functions:

VC = 20Q+0.006665 Q2 with MC=20 + 0.01333Q and
FC = $5,000

P = 50-0.01Q and MR = 50-0.02Q

*Where price is in $ and Q is in kilograms.
All answers should be rounded to the nearest whole number.

·

• Algebraically,
  determine what price Katrina’s Candies should charge in order for the
  company to maximize profit in the short run. Determine the quantity that
  would be produced at this price and the maximum profit possible.

ECO550
Week 7 Discussion Latest 2017 August

Week 7 Discussion

“Predicting
Price-Setting Strategies” Please respond to
the following:

• From
  the scenario for Katrina’s Candies, determine the importance of predicting
  the pricing strategies of rival firms in an industry characterized by
  mutual interdependence. Examine the common price setting strategies of
  airlines that use game theory. Predict the potential effects of such
  pricing strategies on the demand for seats, and conclude the resulting
  impact on the profitability of the airlines.

ECO550
Week 8 Discussion Latest 2017 August

Week 8 Discussion

“Entering
a Merger and Organizational Form” Please respond to
the following:

• From
  the scenario for Katrina’s Candies, examine the major implications for
  firms entering into a merger. Explain the criteria the U.S. Department of
  Justice and the Federal Trade Commission would follow when deciding on
  whether or not to approve a proposed merger.

ECO550
Week 9 Discussion Latest 2017 August

Week 9 Discussion

“Impact
of Government Regulation” Please respond to
the following:

• Take
  a position on whether the banking industry needs more or less government
  regulation. Support your position with two (2) examples of the impact of
  regulation.

ECO550
Week 10 Discussion Latest 2017 August

Week 10 Discussion

“Long-Term
Investment and Cost-Benefit Analysis” Please respond to
the following:

• From
  the scenario for Katrina’s Candies, suggest one (1) method in which Herb
  could use a cost-benefit analysis to argue for or against an expansion.
  Create three (3) optimal decision rules for Katrina’s Candies (e.g.,
  whether to hire more staff or hire temporary workers to meet production
  schedules). Assess both the short-term and the long-term costs and
  benefits of obtaining a graduate degree. Support your decision to obtain a
  graduate degree with a cost-benefit analysis of your particular situation.

ECO550
Week 11 Discussion Latest 2017 August

Week 11 Discussion

Please give most enjoyable part or parts of the class for you,
and asThe state of education affects our economy of course: Address the
following as The state of education affects our economy and managerial
economists of course:

John Stossel- Stupid InAmerica documentary
https://www.youtube.com/watch?v=DIsZpttVSTY&t=7s

from movie (True Story) Lean on Me with Morgan Freeman-education
and poverty and discrimination topics.

trailer http://www.youtube.com/watch?v=evA9nkdOhKU

other scenes- http://www.youtube.com/watch?v=Z6zryIyVlmo

Interviews with the real Joe Clark
http://www.youtube.com/watch?v=r-BtlogDhTg http://www.youtube.com/watch?v=vy51puXEzaM

Class, Do check this out with comparison to Korea. above. How
about these videos from this week about Detroit Public Schools–

Warning–Gross!–Detroit Teachers Are SICK Of The Crumbling
Schools Duration: (8:37)

User: The Young Turks – Added: 1/23/16 YouTube URL:
http://www.youtube.com/watch?v=Lpa-KsuVsqE

Education in South Korea–


http://www.youtube.com/watch?v=_9J5mDbzgYY

and to laugh or cry– Kiss —Jay Leno’s “Jaywalking ” for
example, that reflect education in U.S. videos. The examples are as startling
as the videos! Truth is stranger than fiction as they say.
https://www.youtube.com/watch?v=zZ0cwMkOFPQ

ECO550
Week 3 Asignment 1 Latest 2017 August

Assignment
1: Demand Estimation
Due Week 3 and worth 200 points

Imagine that you work for the maker of a
leading brand of low-calorie, frozen microwavable food that estimates the
following demand equation for its product using data from 26 supermarkets
around the country for the month of April.

For a refresher on independent and dependent variables, please
go to Sophia’s Website and review the Independent and Dependent Variables
tutorial, located at
http://www.sophia.org/tutorials/independent-and-dependent-variables–3.

Option
1
Note: The following is a
regression equation. Standard errors are in parentheses for the demand for
widgets.
QD = – 5200 – 42P + 20PX + 5.2I + 0.20A + 0.25M
(2.002) (17.5) (6.2) (2.5) (0.09) (0.21)
R2 = 0.55 n = 26 F = 4.88

Your supervisor has asked you to compute the
elasticities for each independent variable. Assume the following values for the
independent variables:

Q = Quantity demanded of 3-pack units
P (in cents) = Price of the product = 500 cents per 3-pack unit
PX (in cents) = Price of leading competitor’s product = 600 cents per 3-pack
unit
I (in dollars) = Per capita income of the standard metropolitan statistical
area
(SMSA) in which the supermarkets are located = $5,500
A (in dollars) = Monthly advertising expenditures = $10,000
M = Number of microwave ovens sold in the SMSA in which the
supermarkets are located = 5,000

Option
2
Note: The following is a
regression equation. Standard errors are in parentheses for the demand for
widgets.

QD = -2,000 – 100P + 15A + 25PX + 10I
(5,234) (2.29) (525) (1.75) (1.5)
R2 = 0.85 n = 120 F = 35.25

Your supervisor has asked you to compute the
elasticities for each independent variable. Assume the following values for the
independent variables:

Q = Quantity demanded of 3-pack units
P (in cents) = Price of the product = 200 cents per 3-pack unit
PX (in cents) = Price of leading competitor’s product = 300 cents per 3-pack
unit
I (in dollars) = Per capita income of the standard metropolitan statistical
area
(SMSA) in which the supermarkets are located = $5,000
A (in dollars) = Monthly advertising expenditures = $640

Write a four to six (4-6) page paper in which
you:

1. Compute
the elasticities for each independent variable.Note: Write down all of your calculations.

2. Determine
the implications for each of the computed elasticities for the business in
terms of short-term and long-term pricing strategies. Provide a rationale in
which you cite your results.

3. Recommend
whether you believe that this firm should or should not cut its price to
increase its market share. Provide support for your recommendation.

4. Assume
that all the factors affecting demand in this model remain the same, but that
the price has changed. Further assume that the price changes are 100, 200, 300,
400, 500, 600 cents.

1. Plot
the demand curve for the firm.

2. Plot
the corresponding supply curve on the same graph using the following MC /
supply function Q = -7909.89 + 79.1P with the same prices.

3. Determine
the equilibrium price and quantity.

4. Outline
the significant factors that could cause changes in supply and demand for the
low-calorie, frozen microwavable food. Determine the primary manner in which
both the short-term and the long-term changes in market conditions could impact
the demand for, and the supply, of the product.

5. Indicate
the crucial factors that could cause rightward shifts and leftward shifts of
the demand and supply curves for thelow-calorie, frozen microwavable food.

6. Use at
least three (3) quality academic resources in this assignment.Note: Wikipedia does not qualify as an academic resource.

Your assignment must follow these formatting
requirements:

• Be
  typed, double spaced, using Times New Roman font (size 12), with one-inch
  margins on all sides; citations and references must follow APA or
  school-specific format. Check with your professor for any additional
  instructions.
• Include
  a cover page containing the title of the assignment, the student’s name,
  the professor’s name, the course title, and the date. The cover page and
  the reference page are not included in the required assignment page
  length.

The specific course learning outcomes
associated with this assignment are:

• Analyze
  how production and cost functions in the short run and long run affect the
  strategy of individual firms.
• Apply
  the concepts of supply and demand to determine the impact of changes in
  market conditions in the short run and long run, and the economic impact
  on a company’s operations.
• Use
  technology and information resources to research issues in managerial
  economics and globalization.
• Write
  clearly and concisely about managerial economics and globalization using
  proper writing mechanics.

ECO550
Week 6 Asignment 2 Latest 2017 August

Assignment
2: Operations Decision
Due Week 6 and worth 300 points

Using the regression results and the other
computations from Assignment 1, determine the market structure in which the
low-calorie frozen, microwavable food company operates.

Use the Internet to research two (2) of the leading
competitors in the low-calorie frozen, microwavable food industry, and take
note of their pricing strategies, profitability, and their relationships within
the industry (worldwide).

Write a six to eight (6-8) page paper in which
you:

1. Outline
a plan that will assess the effectiveness of the market structure for the
company’s operations.Note:In
Assignment 1, the assumption was that the market structure [or selling
environment] was perfectly competitive and that the equilibrium price was to be
determined by setting QD equal to QS. You are now aware of recent changes in
the selling environment that suggest an imperfectly competitive market where
your firm now has substantial market power in setting its own “optimal” price.

2. Given
that business operations have changed from the market structure specified in
the original scenario in Assignment 1, determine two (2) likely factors that
might have caused the change. Predict the primary manner in which this change
would likely impact business operations in the new market environment.

3. Analyze
the major short run and long cost functions for the low-calorie, frozen
microwaveable food company given the cost functions below. Suggest substantive
ways in which the low-calorie food company may use this information in order to
make decisions in both the short-run and the long-run.

TC =
160,000,000 + 100Q + 0.0063212Q2
VC = 100Q + 0.0063212Q2
MC= 100 + 0.0126424Q

1. Determine
the possible circumstances under which the company should discontinue
operations. Suggest key actions that management should take in order to
confront these circumstances. Provide a rationale for your response.(Hint: Your firm’s price must cover average variable costs in
the short run and average total costs in the long run to continue operations.)

2. Suggest
one (1) pricing policy that will enable your low-calorie, frozen microwavable
food company to maximize profits. Provide a rationale for your suggestion.

(Hints:

• In Assignment 1, you determined
  your firm’s market demand equation. Now you need to find the inverse
  demand equation. Having found that, find the Total Revenue function for
  your firm (TR is P x Q). From your firm’s Total Revenue function, then
  find your Marginal Revenue (MR) function.
• Use the profit maximization rule
  MR = MC to determine your optimal price and optimal output level now that
  you have market power. Compare these values with the values you generated
  in Assignment 1. Determine whether your price higher is or lower.)

1. Outline
a plan, based on the information provided in the scenario, which the company
could use in order to evaluate its financial performance. Consider all the key
drivers of performance, such as company profit or loss for both the short term
and long term, and the fundamental manner in which each factor influences
managerial decisions.

(Hints:

• Calculate profit in the short run
  by using the price and output levels you generated in part 5. Optional:
  You may want to compare this to what profit would have been in Assignment
  1 using the cost function provided here.
• Calculate profit in the long run
  by using the output level you generated in part 5 and cost data in part 3
  and assuming that the selling environment will likely be very competitive.
  Determine why this would be a valid assumption.)

1. Recommend
two (2) actions that the company could take in order to improve its
profitability and deliver more value to its stakeholders. Outline, in brief, a
plan to implement your recommendations.

2. Use at
least five (5) quality academic resources in this assignment.Note: Wikipedia does not qualify as an academic resource.

Your assignment must follow these formatting
requirements:

• Be
  typed, double spaced, using Times New Roman font (size 12), with one-inch
  margins on all sides; citations and references must follow APA or
  school-specific format. Check with your professor for any additional
  instructions.
• Include
  a cover page containing the title of the assignment, the student’s name,
  the professor’s name, the course title, and the date. The cover page and
  the reference page are not included in the required assignment page
  length.

The specific course learning outcomes
associated with this assignment are:

• Analyze
  short-run and long-run production and cost functions.
• Apply
  macroeconomic concepts to changes in global and national economies and how
  they affect economic growth, inflation, interest rates, and wage rates.
• Evaluate
  the profit-maximizing price and output level for given operating costs for
  monopolies and firms in competitive industries.
• Use
  technology and information resources to research issues in managerial
  economics and globalization.
• Write
  clearly and concisely about managerial economics and globalization using
  proper writing mechanics.

ECO550
Week 9 Asignment 3 Latest 2017 August

Assignment
3: Long-Term Investment Decisions
Due Week 9 and worth 300 points

Assume that the low-calorie frozen,
microwavable food company from Assignments 1 and 2 wants to expand and has to
make some long-term capital budgeting decisions. The company is currently
facing increases in the costs of major ingredients.

Use the Internet and Strayer databases to
research government policies and regulation.

Write a six to eight (6-8) page paper in which
you:

1. Outline
a plan that managers in the low-calorie, frozen microwaveable food company
could follow in anticipation of raising prices when selecting pricing
strategies for making their products response to a change in price less
elastic. Provide a rationale for your response.

2. Examine
the major effects that government policies have on production and employment.
Predict the potential effects that government policies could have on your
company.

3. Determine
whether or not government regulation to ensure fairness in the low-calorie,
frozen microwavable food industry is needed. Cite the major reasons for
government involvement in a market economy. Provide two (2) examples of
government involvement in a similar market economy to support your response.

4. Examine
the major complexities that would arise under expansion via capital projects.
Propose key actions that the company could take in order to prevent or address
these complexities.

5. Suggest
the substantive manner in which the company could create a convergence between
the interests of stockholders and managers. Indicate the most likely impact to
profitability of such a convergence. Provide two (2) examples of instances that
support your response.

6. Use at
least five (5) quality academic resources in this assignment.Note: Wikipedia does not qualify as an academic resource.

Your assignment must follow these formatting
requirements:

• Be
  typed, double spaced, using Times New Roman font (size 12), with one-inch
  margins on all sides; citations and references must follow APA or
  school-specific format. Check with your professor for any additional
  instructions.
• Include
  a cover page containing the title of the assignment, the student’s name,
  the professor’s name, the course title, and the date. The cover page and
  the reference page are not included in the required assignment page
  length.

The specific course learning outcomes associated
with this assignment are:

• Propose
  how differences in demand and elasticity lead managers to develop various
  pricing strategies.
• Analyze
  the economic impact of contracting, governance and organizational form
  within organizations.
• Use
  technology and information resources to research issues in managerial
  economics and globalization.
• Write
  clearly and concisely about managerial economics and globalization using
  proper writing mechanics.

ECO550
Week 5 Mid Term Part 1 Latest 2017 August

Question 1

4 out of 4 points

Which of the following will increase (V0), the
shareholder wealth maximization model of the firm: V0?(shares outstanding) =
??t=1 (? t ) / (1+ke)t + Real Option Value.

Selected Answer:

Correct Decrease the required rate of return
(ke).

Correct Answer:

Correct Decrease the required rate of return
(ke).

Question 2

4 out of 4 points

The moral hazard in team production arises
from

Question 3

4 out of 4 points

Economic profit is defined as the difference
between revenue and ____.

Question 4

4 out of 4 points

The form of economics most relevant to
managerial decision-making within the firm is:

Question 5

4 out of 4 points

Possible goals of Not-For-Profit (NFP)
enterprises include all of the following EXCEPT:

Question 6

4 out of 4 points

Recently, the American Medical Association
changed its recommendations on the frequency of pap-smear exams for women. The
new frequency recommendation was designed to address the family histories of
the patients. The optimal frequency should be where the marginal benefit of an
additional pap-test:

Question 7

0 out of 4 points

The primary difference(s) between the standard
deviation and the coefficient of variation as measures of risk are:

Question 8

4 out of 4 points

The standard deviation is appropriate to
compare the risk between two investments only if

Question 9

4 out of 4 points

The approximate probability of a value
occurring that is greater than one standard deviation from the mean is
approximately (assuming a normal distribution)

Question 10

4 out of 4 points

An closest example of a risk-free security is

Question 11

4 out of 4 points

Based on risk-return tradeoffs observable in
the financial marketplace, which of the following securities would you expect
to offer higher expected returns than corporate bonds?

Question 12

4 out of 4 points

Generally, investors expect that projects with
high expected net present values also will be projects with

Question 13

4 out of 4 points

An income elasticity (Ey) of 2.0 indicates
that for a ____ increase in income, ____ will increase by ____.

Question 14

4 out of 4 points

Those goods having a calculated income
elasticity that is negative are called:

Question 15

4 out of 4 points

Auto dealers slash prices at the end of the
model year in response to deficient demand/excess inventory but restaurants
facing the same problem slash production because

Question 16

4 out of 4 points

Suppose we estimate that the demand elasticity
for fine leather jackets is .7 at their current prices. Then we know that:

Question 17

4 out of 4 points

Which of the following would tend to make
demand INELASTIC?

Question 18

4 out of 4 points

A price elasticity (ED) of ?1.50 indicates
that for a ____ increase in price, quantity demanded will ____ by ____.

Question 19

4 out of 4 points

The factor(s) which cause(s) a movement along
the demand curve include(s):

Question 20

4 out of 4 points

In testing whether each individual independent
variables (Xs) in a multiple regression equation is statistically significant
in explaining the dependent variable (Y), one uses the:

Question 21

0 out of 4 points

When two or more “independent”
variables are highly correlated, then we have:

Question 22

4 out of 4 points

When using a multiplicative power function (Y
= a X1b1 X2b2 X3b3) to represent an economic relationship, estimates of the parameters
(a, and the b’s) using linear regression analysis can be obtained by first
applying a ____ transformation to convert the function to a linear
relationship.

Question 23

4 out of 4 points

The standard deviation of the error terms in
an estimated regression equation is known as:

Question 24

4 out of 4 points

The estimated slope coefficient (b) of the
regression equation (Ln Y = a + b Ln X) measures the ____ change in Y for a one
____ change in X.

Question 25

0 out of 4 points

In regression analysis, the existence of a
high degree of intercorrelation among some or all of the explanatory variables
in the regression equation constitutes:

ECO550
Week 5 Mid Term Part 2 Latest 2017 August

Question 1

4 out of 4 points

The forecasting technique which attempts to
forecast short-run changes and makes use of economic indicators known as
leading, coincident or lagging indicators is known as:

Question 2

4 out of 4 points

For studying demand relationships for a
proposed new product that no one has ever used before, what would be the best
method to use?

Question 3

4 out of 4 points

The type of economic indicator that can best
be used for business forecasting is the:

Question 4

4 out of 4 points

Which of the following barometric indicators
would be the most helpful for forecasting future sales for an industry?

Question 5

4 out of 4 points

Smoothing techniques are a form of ____
techniques which assume that there is an underlying pattern to be found in the
historical values of a variable that is being forecast.

Question 6

4 out of 4 points

The variation in an economic time-series which
is caused by major expansions or contractions usually of greater than a year in
duration is known as:

Question 7

4 out of 4 points

If Ben Bernanke, Chair of the Federal Reserve
Board, begins to tighten monetary policy by raising US interest rates next
year, what is the likely impact on the value of the dollar?

Question 8

4 out of 4 points

Using demand and supply curves for the
Japanese yen based on the $/¥ price for yen, an increase in US INFLATION RATES
would

Question 9

4 out of 4 points

An increase in the exchange rate of the U.S.
dollar relative to a trading partner can result from

Question 10

4 out of 4 points

The purchasing power parity hypothesis implies
that an increase in inflation in one country relative to another will over a
long period of time

Question 11

4 out of 4 points

If the British pound (?) appreciates by 10%
against the dollar:

Question 12

4 out of 4 points

European Union labor costs exceed U.S. and
British labor costs primarily because

Question 13

4 out of 4 points

An appreciation of the U.S. dollar has what
impact on Harley-Davidson (HD), a U.S. manufacturer of motorcycles?

Question 14

4 out of 4 points

If the marginal product of labor is 100 and
the price of labor is 10, while the marginal product of capital is 200 and the
price of capital is $30, then what should the firm?

Question 15

4 out of 4 points

Marginal factor cost is defined as the amount
that an additional unit of the variable input adds to ____.

Question 16

4 out of 4 points

Given a Cobb-Douglas production function
estimate of Q = 1.19L.72K.18 for a given industry, this industry would have:

Question 17

0 out of 4 points

The isoquants for inputs that are perfect
complements for one another consist of a series of:

Question 18

4 out of 4 points

In a production process, an excessive amount
of the variable input relative to the fixed input is being used to produce the
desired output. This statement is true for:

Question 19

4 out of 4 points

The marginal rate of technical substitution
may be defined as all of the following except:

Question 20

4 out of 4 points

The cost function is:

Question 21

4 out of 4 points

Economies of Scope refers to situations where
per unit costs are:

Question 22

4 out of 4 points

Economies of scale exist whenever long-run
average costs:

Question 23

4 out of 4 points

What method of inventory valuation should be
used for economic decision-making problems?

Question 24

4 out of 4 points

According to the theory of cost, specialization
in the use of variable resources in the short-run results initially in:

Question 25

4 out of 4 points

The existence of diseconomies of scale (size)
for the firm is hypothesized to result from:

ECO550 Final Part 1 Latest 2017 August all correct

Question 1

0 out of 4 points

Evidence from empirical studies of long-run cost-output
relationships lends support to the:

Question 2

0 out of 4 points

The short-run cost function is:

Question 3

0 out of 4 points

Which of the following is not an assumption of the linear
breakeven model:

Question 4

4 out of 4 points

A ____ total cost function implies that marginal costs ____ as
output is increased.

Question 5

4 out of 4 points

Break-even analysis usually assumes all of