Econ 550 Assignment Graph

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1. If two small perfectly competitive firms merge, the merged firm will be: 2. In a market characterized by many buyers and one seller, investment in informative advertising by a seller can ____ the price of a commodity to customers and lower their _____ cost of acquiring information. 3. Which of the following industries can create barriers to the entry of new firms due to size and specificity? 4. Which of the following activities can create an external cost? 5. Which of the following…

1). In the absence of any legally binding enforcement mechanism, individual cartel producers may find it advantageous to cheat on the agreements and engage in secret price concessions. 2). When a promisor fails to put full effort into the performance of an agreement, yet the lack of effort is not independently verifiable, this lack of effort constitutes a 3). The Herfindahl-Hirschman index is a measure of ____. 4). In long-run equilibrium, all firms in a pure competition market situation…

ECO 550 MIDTERM EXAM 6 1. Which of the following will increase (V0), the shareholder wealth maximization model of the firm: V0∙(shares outstanding) = Σ∞t=1 (π t ) / (1+ke)t + Real Option Value 2. The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers? 3. Income tax payments are an example of ____. 4. Various executive compensation plans have…

ECO 550 Final Exam 1). Evidence from empirical studies of short-run cost-output relationships lends support to the: 2). Break-even analysis usually assumes all of the following except: 3). In determining the shape of the cost-output relationship only ____ depreciation is relevant. Answer 4). In the linear breakeven model, the breakeven sales volume (in dollars) can be found by multiplying the breakeven sales volume (in units) by: Answer 5). A firm in pure competition would shut down…

ECO 550 Sample Final Exam 1. The degree of operating leverage is equal to the ____ change in ____ divided by the ____ change in ____. 2. In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as: 3). Break-even analysis usually assumes all of the following except: 4).The short-run cost function is: 5). In the short-run for a purely competitive market, a manufacturer will stop production when: 6). In the long-run, firms in…

ECO 550 Midterm Exam 3 1. Possible goals of Not-For-Profit (NFP) enterprises include all of the following EXCEPT: 2. The primary objective of a for-profit firm is to ___________. 3. Income tax payments are an example of ____. 4. Economic profit is defined as the difference between revenue and ____. 5. A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the ____. 6. The standard deviation is appropriate to…

MIDTERM EXAM 4 1. Economies of Scope refers to situations where per unit costs are 2. For a short-run cost function which of the following statements is (are) not true? 3. According to the theory of cost, specialization in the use of variable resources in the short-run results initially in: 4. Economies of scale exist whenever long-run average costs: 5. The existence of diseconomies of scale (size) for the firm is hypothesized to result from: 6. If TC = 321 + 55Q - 5Q2, then…

HRM 595 Final Exam 1. Joe McDonald is the HR manager of ACME chemicals. His boss, Bill Jacobs, is concerned that the interactions between the various departments of the company are inconsistent and that there is too much competition between departments rather than cooperation. Bill has asked you about ways to improve the negotiations between business units. In your explanation to Bill, you need to explain the following: What are the three primary reasons that negotiations occur? What…

HRM 595 Negotiation Skills WEEK 1 Assignment; Personal Bargaining Inventory Answer Worksheet Discussion Question 1, Noisy Neighbors Discussion Question 2, Sick Leave WEEK 2 Assignment, Field Analysis Discussion Question 1, What is Framing & Why Should I do It Discussion Question 2, Movie Night-Personality & Negotiation WEEK 3 Assignment, Negotiation Analysis Course Project Proposal Discussion Question 1, Seeing Things My Way Discussion Question 2, Winning...

ECO 550 Sample Final Exam 1. The Prisoner’s Dilemma involves two spies who are held in separate soundproof rooms. But even if the two spies could communicate, what makes it difficult for them to achieve the cooperative solution (both not confessing)? 2. A key to analyzing subgame perfect equilibrium strategy in sequential games is 3. In making promises that are not guaranteed by third parties and in imposing penalties that are not enforced by third parties, all of the following are…

HRM 595 WEEK 1 Assignment, Personal Bargaining Inventory Answer Worksheet Discussion Question 1, Noisy Neighbors Discussion Question 2, Sick Leave

1 Elasticity of Demand The demand of any product depends on the pricing strategy being followed by the company along with some other factors like nature of product i.e. necessity or luxury, availability of substitutes, switching cost etc. If the product is a necessity usually it has inelastic demand. Inelastic demand refers to the situation where one unit increase or decrease in the product’s price cause less than one dollar change in the units demanded of that product ( Kreps, D. M. 1990). If product is a luxurious, its demand is usually elastic in nature. Elastic demand means when one unit change in the price of a product cause more than one unit change in its quantity demanded. E.g. the automobiles and mobiles have elastic demand while salt and sugar have inelastic demand. The product under consideration is low calorie microwavable food items whose price elasticity as was provided in previous assignment was: Own price elasticity (e p ) = ∂Q ∂ P × P Q ∂Q ∂ P = -10, P = 8000, Q = 131000 Own Price elasticity (e p ) = - 10 × 8000 131000 = - 0.61 (approx.) As the 1 unit change in price cause less than 1 unit change in quantity demanded of low calorie microwavable food, thus their demand is inelastic in nature. Thus changes in prices don’t cause huge change in their quantity demanded. Though currently its demand is inelastic in nature but one of the most important factors that need to be considered here is availability of substitutes. As from the last assignment we came to know that large number of sellers of low calorie microwavable food items exist in the industry offering some differentiated features. This shows that substitutes can easily be available and company lies in monopolistic competition industry. In monopolistic competition there exist a large number of suppliers each offering some differentiated feature in their product and thus can change the price to some extent. Thus

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