CHAPTER 6COST ANALYSIS AND ESTIMATION
MULTIPLE CHOICE
1. The foregone value associated with the current rather than next-best use of a given asset is called:
a. current cost.
b. replacement cost.
c. historical cost.
d. opportunity cost.
ANS: D
2. Sunk cos
Chapter 1
Q1.
For the first project:
4
PV of the profit = $100,000*
1
(1+0.1)
4
= $100,000* 3.1699 =$316,990
t =1
For the second project:
6
PV of the profit = $75,000*
1
(1+0.1)
6
= $75,000*4.3553 =$326,647.5
t =1
Since PV of the first projects profit (
Chapter 6
Q1:
Y^ t=8.25+0.125 t2.75 D 1 t+ 0.25 D 2 t+3.50 D 3 t
Since the first quarter of 2002 t =0, the second quarter of 2002 t=1, then the first
quarter of 2010 t=32.
Forecast furniture-Marts sales of patio and lawn furniture for each quarter in 2010
Emily White
BC 807 PA
Dr. Kal
November 24, 2015
Homework 9 Chapter 10
Question 1
a. There are several arguments as to why the markets are not competitive.
1. Difference in size a grocery store is typically bigger than a gasoline station
therefore a grocer
Emily White
BC 807 PA
Dr. Kal
October 27, 2015
Homework 7 Chapter 7
Question 1
a. The textile machine costs $600 per day, but can produce 1,800units per day making the
machines cost per unit be $0.33 ($600/1,800units). On the other hand, workers only cost
Managerial Economics Final Exam
Question 1:
(a)
AVC = 1.24 + 0.0033Q + 0.0000029Q2 0.000046QZ 0.026Z + 0.00018Z2
The long run average cost function = Average variable cost x quantity
Thus,
(1.24 + 0.0033Q + 0.0000029Q2 0.000046QZ - 0.026Z + 0.00018Z2) x Q
1
Emporia State University
School of Business
Summer 2017
BC 807 XA
Solution for Homework 9
Total Points = 25
1. (5 points) Look at the list of economic indicators on page 214 of the textbook. One of the
leading indicators is New orders for non-military c
1
Emporia State University
School of Business
Summer 2017
BC 807 XA
Solution for Homework 7
Total Points = 20
1. (5 points) Janice spends her entire weekly food allowance of $42 on hamburgers and soft
drinks. The price of a hamburger is $2, and the price
1
Emporia State University
School of Business
Summer 2017
BC 807 XA
Solution for Homework 10
Total Points = 20
1. (5 points) How easy, or difficult is it for a company like Apple to forecast total worldwide
consumer demand for a new product like the iPhon
Chapter 4
Q1:
(a)
When the price of hamburger increases, the demand of hotdog will increase.
The demand curve of hotdog will shift up.
(b)
It will make the demand curve of hotdog shift down. The demand of hotdog will
decrease.
(c )
With the new machine, t
Q1. Given the following total revenue function: TR = 9Q Q 2
(a) Derive total-, average-, and marginal-revenue schedules from Q = 0 to Q = 6 by 1 unit increment.
(b) On the same set of axes, plot the total-, average-, and marginal-revenue schedules of part
HW #10-Chapter 11
Q1:
The equilibrium price (Pe) is $1.35.
In fact, the proposal means a price ceiling of $0.50(P0) is set. The price ceiling will
cause a shortage of ATM. According to Figure 1, the shortage is between point A and
B. For long-run, there w
Q1. Explain carefully what happens in the market for hotdog if: (these are not multiple choice questions)
(a) the price of hamburger increases,
(b) a virus develops that contaminate a large proportion of hotdog production in the nation,
(c) a new machine
Q1. Cole Drug Manufacturing Inc. estimated the following regression model, using 35 years data from its
head office located in Lebo for its anti-acid and hear burn relief medicine.
Y = -1.04 + 0.24X1 0.27X2
Where Y = yearly sales (in thousands of cases) o
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.996774483
R Square 0.993559371
Adjusted R0.992639281
Standard E0.021396815
Observatio
9
ANOVA
df
Regression
Residual
Total
Intercept
t
SS
MS
F
Significance F
1 0.4943810475 0.494381 1079.9 6.26E-009
7 0.00
Q1. Anais Franc, the manager of Emporia Bread and Cookie Inc. wants to decide which of two
investment projects she should choose if the discount rate of the firm is 10 percent. The first project
promises profit of $100,000 in each of the next four years,
Chapter8
Q1:
a. AVC=a+bQ+cQ2
AVC=30.4202-0.0799Q+0.000088Q2
The short-run average variable cost curve should be a U-shape. It requires that a
and c should be larger than 0 and b should be smaller than 0.
a=30.4202>0, b=-0.0799<0, and c is 0.000088 which i
Lin Zhang
BC 807
Chapter 3
Y=-0.14+0.24X1-0.27X2
Q1:
The coefficient of X1 is 0.24. It means if X1 increases by 1 thousand $,
a.
Y will increase by 0.24 unit.
The coefficient of X2 is -0.27. It means if X2 increases by 1 thousand $,
Y will decrease by 0.2
Solution for Homework 5
Emporia State University
School of Business
Summer 2017
BC 807 XA
Total Points = 25
1. (10 points) A survey indicated that chocolate is Americans favorite ice cream flavor. For each
of the following, indicate the possible effects o
1
Emporia State University
School of Business
Summer 2017
BC 807 XA
Solution for Homework 8
Total Points = 25
1. (5 points) If gasoline is provided free to consumers (you do not have to worry about who will
provide it), would you expect the quantity deman
CHAPTER 7PRODUCTION ANALYSIS AND COMPENSATION POLICY
MULTIPLE CHOICE
1. The production function Q = 0.25X0.5Y exhibits:
a. constant returns to scale.
b. increasing returns to scale.
c. increasing and then diminishing returns to scale.
d. diminishing retur
6/4/2016 StudyBlue Flashcard Printing of ECON 528- Test One
If an economic time series is growing by a
constant dollar amount each period, the most
accurate forecast models IS
This is a long-run pattern of
increase or decrease in a
series of economic data
Summer 2016 BC807ZA
MIDTERM EXAM JUNE-5(Sun) 3:00-6:00PM
Total Points = 50. Chapter 2, 3, 4, 5 and 6
Print Last Name First Name
nga315+5 points) During a year of operation, a ﬁrm collects $1,200,000 in revenue and spends $230,000
on raw materials, $535,00
1
Emporia State University
School of Business
Summer 2017
BC 807 XA
Solution for Homework 3
Total Points = 15
1. (5 points) Assume that you are estimating the demand curve for the new iPhone, which is
scheduled to be released later this year. You run a li
Emporia State University
School of Business
Summer 2017
BC 807 XA
Solution for Homework 1
Total Points = 15
1. (5 points) Android smartphones are produced by many companies around the world. This is
based on an operating system (Android) that was original
1
Emporia State University
School of Business
Summer 2017
BC 807 XA
Solution for Homework 4
Total Points = 20
Question 1. (5 points) Can R2 of a regression be greater than 1 (one)? Please explain.
R2 cannot be greater than 1. Since R2 shows the proportion
Emporia State University
School of Business
Summer 2017
BC 807 XA
Solution for Homework 2
Total Points = 20
1. (5 points) Traffic lights decrease the number of accidents on roads. Will society be better off
with a traffic light at every intersection in a
1
Emporia State University
School of Business
Summer 2017
BC 807 XA
Solution for Homework 6
Total Points = 20
1. (10 points) The utilities commission in a city is currently examining pay telephone service in
the city. The commission has been asked to eval