Topic Paper Week 7
BUSN 6120, Managerial Economics
CERTIFICATE OF AUTHORSHIP: I certify that I am the author. I
The Real Social Media
BUSN 6120, Managerial Economics
CERTIFICATE OF AUTHORSHIP: I certify th
The statement of the CMO is unambiguously reliable because there could be
several other factors leading to increased sales, not just the increase in price. These other
factors could include the increase of prices by compet
This type of cost assignment results in misrepresentation. This disturbs the assesment of the act of job
superintendents and job estimation. This misrepresentation can also cause future references to be
faulty and ineffective.
Service companies do not hav
Week 3 Case Assignments
Question 12 (page 169).
The manager could have worked harder to reduce cost of labor and therefore
increase capital. This is one way the manager could have better maximized profits for the
Week 8 Case Assignments
Question 2 (page 462).
a. 1) The firm will maximize profits when the quantity produced at the MR=MC
point hits the demand curve. In this case the price is $125.
2) Consumer surplus = .5 * (200-125) * 7.5 =
Week 5 Case Assignments
Question 14 (page 266).
One way to maximize profits is to adjust the price so that marginal revenue equals
marginal cost. In this case, the marginal revenue is higher than marginal cost so we
would need to d
Week 7 Case Assignments
Question 11 (page 369).
The price we should charge for a midsized car to maintain record profits is
P = (3*(-1.3)/(1+3*(-1.3)*12000 = $16137.93
Question 15 (page 369).
The optimal number of muffi
Week 6 Case Assignments
Question 9 (page 335).
a. Both players have dominant strategies in the matrix given. Player 1s dominant
strategy is A and C is Player 2s.
b. Both players have secure strategies in the matrix given. Player 1
The Relationship between Social Media and E-Commerce
Almost every facet of today society is impacted by social media in one way or
another. Some use it to connect with friends, to share photos and life stories, while
others use it to guide their
I do not agree with the statement that nonprofit organizations do not need managerial accounting.
Managerial accounting deals with the information to be used inside the organization to form the
organization's strategy. This type of accounting addresses th
Production Function- maximum amount of output with given set of inputs.
Fixed factors of production- inputs a manager cant adjust in short-run
Variable factors of production- inputs a manager can adjust in short run
Marginal product of labor: ch
Chapter 9 Problems
5. 5a. Set P= MC to get 800-4Q=$260, 135 units
5b. P=MC ($260
5c. each firm earns 0 economic profits
8. 8a. Firm 1s output and profits would increase, Firm 2 would decrease
8b. There would be no change.
11. Profits like
Chapter 8 Problems
1a. In short run to maximise profit MR=MC , Q = 7
1c. At 7 units of output, ATC is $32 and quantity is 7 units, Total cost=ATCxQ=$224
1d. At 7 units of output, AVC is $14, Total Variable Cost=AVCxQ=$98
1e. At 7
I would say that contract would be the optimal method for procuring inputs that have welldefined and measurable quality specs. This method would hold both the supplier and the buyer
6. This statement would be true if an investment yields a positive return or positive NPV. Statement
would be false if it doesnt consider a few beneficial factors to the model.
7. Advantages of audits include:
7.The problems caused by assigning costs to the wrong jobs could include overpayment for the job,
underpayment for the employees and the organization, loss of profit &loss of time which also affects
11. Quality service is when you m
Busn 6070 Week 3
9. Ultimately the company & its reputation bears the cost of the decisions made by management.
12. Just in time requires total quality management because JIT forces you to think of all the things that
could go wrong and c
7. A standard usually refers to a projected amount per unit of product, per unit of input (such as direct materials, factory overhead),
or per unit of output. A budget usually refers to a department's or a company's projected revenues, costs, o
15. The CVP model uses three basic assumptions to determine target profit volumes, break-even points,
etc. The behavior of cost and revenue shows a linear relationship in the cost-volume-profit analysis.
Multiple product cost-volu
13. The four measures that FMC picked as important are: 1. On-time delivery 2. Cost control 3.
Developing sources of raw materials 4. Developing new products. The managers communicated
how important meeting on-time delivery targets to employees
15. No I do not agree with this statement because they do have and earn a profit. Non-profit
organizations must use managerial accounting to make wise business decisions that will help
them stay in business and produce a profit. Whether for profit or non-
a. Given that the gasoline is inelastic in Japan, a sharp increase in the price would not have a
significant change on the demand. It would have very little change in the consumption for gas,
posing the possibility of a very small decrea
Problem Set 4 (Chapters 7-8)
Answer the questions in the space provided. Do not write in the margins. Show
your work. Staple your papers. Following these directions will give you 5 bonus
1. Revise demonstration problem 7-1 suc
Page 202, Question 12:
In order to keep his job he should have maximized profit based on the cost of labor. Since they never
minimized cost of labor or capital causing production cost to be high. The manager should have cut the
down the number of units of
Week 6 Case Assignment
Page 402: Question 9
a) With this payoff matrix both players have dominant strategies. A is the dominant
strategy for Player 1 and C is the dominant strategy for Player 2.
b) With this payoff matrix both players have secure strategi
Week 5 Case Assignment
Page 317: Question 14
MR = p (1+e)/e)
Since MR=MC, the firm should remain at the same price.
Page 319: Question 18
Overhead cost for the producing the bolts in irrelevant. The explicit marginal co
Topic Paper 3:
The Boeing Aircraft Company
In Partial Fulfillment of the Requirements of:
Fall 1, 2016
Topic Paper Assignment:
The Boeing Aircraft Company has dominated the comme
In order to make this difficult decisions there are a few things that must be addressed:
First we must decide if it is viable to remain as an operating business in regards of long-term. Once that
is determined we must consider future demand of electricity