BE 401
Quiz 1
Topics
Chapter 2
Given a demand/supply curve scenario: able to identify the following:
1. Equilibrium, write equations
2. consumer surplus identify & calculate
3. Effect of a price ceiling and floor.
4. Identify & calculate shortage/surplus
COLLEGE OF BUSINESS
Managerial Economics & Business Strategy
BE 401 Syllabus*
INSTRUCTOR:
Prof. M. Rowland (Blenman)
OFFICE HOURS: T/Th: 1:00-2:00pm
W: 5-6:00pm
CLASSROOMs
OFFICE:
PHONE #:
FCS 148 & 117 (N)
FCS 104 B
313.583.6489
E-mail:
mrowlan@umich.edu
BE 401
Fall 2016
Essay & Data Research Assignment
20% of total grade on a 100 point base
The goal of this assignment is to create an understanding of the economic events that resulted
in the financial crash of 2008 and the subsequent recovery (through tod
After Donald Trump unveiled his tax plan last week, one particular tax proposal has been
advertised as slashing the burden on two sample middle-income families with children. In one
of his following speeches he stated:
A married couple (FAMILY A) earning
Chapter04TheTheoryofIndividualBehavior
Chapter 04
The Theory of Individual Behavior
MultipleChoiceQuestions
1.SupposetheutilityfunctionforafirmmanagerisU=+bQ,whereQisoutput,is
profit,andbisapositiveconstant.Howwouldthefirm'soutputcomparewithwhatitwould
be
BE 401
Quiz 1 —Winter 2012 Name
The objective of this quiz to assess your knowledge of basic supply and demand analysis and
quantitative demand analysis. There are 14 possible points. Each question is worth 1 point.
Below is a demand function.
Q: 10—2P+4P
Chapter 14: Answers to Questions and Problems
1.
a.
b.
c.
2,000.
2,800.
Yes. Both the pre-merger HHI and change in HHI exceed those specified in
the guidelines.
2.
a.
i. About $125.
ii. Approximately $281.25 (computed as .5[7.5][$200 - $125] = $281.25).
b
Chapter 13: Answers to Questions and Problems
1.
a.
b.
16 units.
Note that P = $200, AC = $180, and Q = 16, so profits are ($200 - $180)(16) =
$320.
c.
Yes; if it can credibly commit to a higher output it will earn even greater
profits.
2.
D
$10
a.
= +
=
Chapter 11: Answers to Questions and Problems
1.
E
1.5
a. Since E = EF = EM, P =
MC =
$75 = ( 3) $75 = $225 .
1+ E
1 1.5
2 ( 1.5)
EF
NE M
b. P =
$75 = ( 1.5) $75 = $112.50 .
MC =
$75 =
1 + EF
1 + NE M
1 + 2 ( 1.5)
EF
c. P =
1 +
Chapter 10: Answers to Questions and Problems
1. a. Player 1s dominant strategy is B. Player 2 does not have a dominant strategy. b. Player 1s secure strategy is B. Player 2s secure strategy is E. c. (B, E). 2. a. Player 2 A $500, $500 $650, $0
Player 1
S
Chapter 9: Answers to Questions and Problems
1.
a. D2.
b. D1.
c.
i. $20.
ii. 0 units.
iii. $20 to $50.
2.
a. Q1 =
a c1 1
100 12 1
Q2 =
Q2 = 22 0.5Q2 and
2b
2
2 ( 2)
2
a c2 1
100 20 1
Q1 =
Q1 = 20 0.5Q1 .
2b
2
2( 2 )
2
b. Q1 = 16; Q2 = 12.
c. P = 100 2
Chapter 8: Answers to Questions and Problems
1.
a.
b.
c.
d.
e.
f.
g.
h.
7 units.
$28.
$224, since $32 x 7 = $224.
$98, since $14 x 7 = $98.
$126 (the difference between total cost and variable cost).
It is earning a loss of $28, since ($28 -$32) x 7 = - $
Chapter 6: Answers to Questions and Problems
1. When an input has well-defined and measurable quality characteristics and requires
specialized investments, the optimal procurement method is a contract. A contract
reduces the likelihood of opportunistic be
Chapter 3: Answers to Questions and Problems
1.
a. When P = $12, R = ($12)(1) = $12. When P = $10, R = ($10)(2) = $20. Thus, the
price decrease results in an $8 increase in total revenue, so demand is elastic over
this range of prices.
b. When P = $4, R =
Chapter 2: Answers to Questions and Problems
1.
a. Since X is a normal good, an increase in income will lead to an increase in the
demand for X (the demand curve for X will shift to the right).
b. Since Y is an inferior good, a decrease in income will lea
Chapter 1: Answers to Questions and Problems
1.
Consumer-consumer rivalry best illustrates this situation. Here, Levi Strauss & Co. is
a buyer competing against other bidders for the right to obtain the antique blue jeans.
2.
The maximum you would be will