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Economics of Enterprise
the production department achieves a technological breakthrough that reduces production cost. what effect would have on the value of the firm?
Economics of Enterprise
a new competitor enters the market.what effect would have on the value of the firm?
Economics of Enterprise
A manager wants to determine the relationship between the firm's advertising expenditures and its sales revenue from the following data:
Advertising Expenditures 10 9 11 12 11 12 13 13 14 15
Sales Revenue 44 40 42 46 45 52 54 58 56 60
Use the regression analysis to calculate by hand the estimated co-efficient of the equation Y=B+aX
Compute the standard error and the t-statistics for the co-efficient of X.
Advertising Expenditures 10 9 11 12 11 12 13 13 14 15
Sales Revenue 44 40 42 46 45 52 54 58 56 60
Use the regression analysis to calculate by hand the estimated co-efficient of the equation Y=B+aX
Compute the standard error and the t-statistics for the co-efficient of X.
Economics of Enterprise
Kiran company is major producer if steel. Management estimates that the demand of the company's steel id given by the equation
Qx = 5000 - 1000 Px +0.1 I + 100 Pc
Using this information, the company's manager want to determine what effect a price increase would have on total revenue. Evaluate how sale of steel would change during a period of rising incomes. Assume the probable impact of competing producers raise their prices. Assume that the initial claues of Px, i, pc are $1, $20,000 and $0.80 respectively.
Qx = 5000 - 1000 Px +0.1 I + 100 Pc
Using this information, the company's manager want to determine what effect a price increase would have on total revenue. Evaluate how sale of steel would change during a period of rising incomes. Assume the probable impact of competing producers raise their prices. Assume that the initial claues of Px, i, pc are $1, $20,000 and $0.80 respectively.
Economics of Enterprise
a. Use the regression analysis to calculate by hand the estimated co-efficient of the equation Y=B+aX
b. Compute the co-efficient of determination
c. what is the predicted value of Y for X=1.0? For X=3.5?
b. Compute the co-efficient of determination
c. what is the predicted value of Y for X=1.0? For X=3.5?
Economics of Enterprise
ABC corporation is a publisher of business dictionaries. the corporation hires an economist to determine the demand for its product, after month of hard work, the analyst tell the company that demand for the firms dictionaries (Qx) is given by the following equation:
Qx= 20000 - 10000 Px+ 10 P +1000 Pc
where Px is the price charged for ABC dictionaries, I is income per Capital and Pc is the price of books from competing publishers. Using this information, the company's managers want to
(i) Determine what effect a price increase would have on total revenues.
(ii) Evaluate how sale of dictionaries would change during a period of raising income.
(iii) Assess the probable impact if competing publishers raise their prices
Assume that the initial values of Px=$8, I=$18000 and Pc=$10
Qx= 20000 - 10000 Px+ 10 P +1000 Pc
where Px is the price charged for ABC dictionaries, I is income per Capital and Pc is the price of books from competing publishers. Using this information, the company's managers want to
(i) Determine what effect a price increase would have on total revenues.
(ii) Evaluate how sale of dictionaries would change during a period of raising income.
(iii) Assess the probable impact if competing publishers raise their prices
Assume that the initial values of Px=$8, I=$18000 and Pc=$10
Economics of Enterprise
The ABC computer corporation is considering an increase in its advertising expenditures form $10 million to $15 million for a five year period (i.e in years 1 to 5). the marketing department estimates that the increased advertising will increase profits by $4 million in years 3 to 7 and by $3 million. in years 8 to 10, after which profits will return to the level they were at prior to the new program , if the firm uses a discount rate of 12 percent, will the proposed advertising program increase shareholder value?
Economics of Enterprise
the baker has the following probabilities for selling a pastry.
Demand: 20 21 22 23 24
Probability: 0.1 0.2 0.3 0.4 0.5
the cost of pastry is 25 paisa and sales price is 45 paisa, pastries are perishable and must be thrown if not sold during the day. how many pastries should he sale? also find expected value of perfect information.
Demand: 20 21 22 23 24
Probability: 0.1 0.2 0.3 0.4 0.5
the cost of pastry is 25 paisa and sales price is 45 paisa, pastries are perishable and must be thrown if not sold during the day. how many pastries should he sale? also find expected value of perfect information.
Economics of Enterprise
the demand equation is estimated to be 50-3P-2Po, where Po is the price of other good. Assume the average value of P is $3 and the average value of Po is $6.
a. what is the price elasticity at the average values of P and Po? how should the price of the good be changed to increase total revenues?
b. what is the cross elasticity at the average values of P and Po? what is the relationship between the two goods?
c. if equation is correctly estimated is good inferior, a necessity or a luxury? Explain.
a. what is the price elasticity at the average values of P and Po? how should the price of the good be changed to increase total revenues?
b. what is the cross elasticity at the average values of P and Po? what is the relationship between the two goods?
c. if equation is correctly estimated is good inferior, a necessity or a luxury? Explain.
Economics of Enterprise
A contract Calls for the payment of $400 at the end of four years and $ 8000 at the end of ten years. if interest rate is 5 percent. what is the present value of this contract.
