Economics of Decision Making
2. A travel company has hired a management consulting company to analyze demand in
twenty-six regional markets for one of its major products: a guided tour to a particular
country. The consultant uses data to estimate the foll

Economics of Decision Making
Practice homework Assignment 2
1. You are the manager of a large automobile dealership who wants to learn more about the
effectiveness of various discounts offered to customers over the past 14 months. Following
are the averag

Five Forces Analysis practice work
(Due date: March 19th)
You will perform a Five Forces Analysis of the River Region Financial Services Industry (part of Max Credit
Unions market). You will work on this project in groups of 2 or 3 students. The project w

R^2 values for the linear, quadratic and cubic fit are respectively 0.909, 0.987 and 0.999. This
means the linear trend model is able to explain about 90.9% of the correlation between cost and
quantity, the quadratic trend model is able to explain about 9

4.Youhavebeenpresentedwiththefollowingcostdataandaskedtofit
astatisticalcostfunction:
Quantity
Total Cost
10
104.0
20
107.0
30
109.0
40
111.5
50
114.5
60
118.0
70
123.0
80
128.5
90
137.0
100
150.0
a. Plot the data on a graph, and draw a freehand curve tha

3. During the last 50 years or so, many studies of cost curves have been published. The
results of two of these are summarized here. In each case, interpret the equation and discuss
the shapes of the total cost curve, the marginal cost curve, and the aver

2. Indicate the effect that each of the following conditions will have on a firms average
variable cost curve and its average cost curve.
a. The movement of a brokerage firms administrative offices from New York City to
New Jersey, where the average renta