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The case is called Hyundai Motor Company in China (free if you google and search it). Read the case and answer the below question
1. a. Summarize competitive environment in the Chinese car industry using Porter’s Five Forces (The number and power of a company's competitive rivals, potential new market entrants, suppliers, customers, and substitute products influence a company's profitability). Note the factors that benefit or hurt Hyundai’s potential profitability in the Chinese market. Hint: Check pages 6-10 of the case.
b. In the face of this competition, Hyundai and their Chinese partner disagree about the best business-level strategy to adopt. Describe at least 3 strategies that the partners deployed toward cost-leadership and/or differentiation. Do these seem effective given the competitive environment you described in Part a? Explain
Define marginal utility. Provide an argument why to maximize total utility of good x and good y, the consumer should consume until the ratio of marginal utilities over price is the same across both goods. [6 marks]
a) Given the following demand function for beef (kg), P = 200 – 5Q i) By how much would the price have to fall for consumers to be willing to buy 1 more kg of beef per day? [5 marks] ii) If the price decreases by N$0.9, by how much will the demand changed? [5 marks]
Q TVC
0 0
1 5
2 9
3 14
4 20
5 28
6 38
If the price of output is $7 and fixed costs are $12, how many units of output will this firm produce? What is the total revenue? What is the total cost? Will the firm operate or shut down in the short run? Briefly explain your answers
Suppose Government of Pakistan wants to put a curb on public smoking. Studies indicate that the price elasticity of demand for cigarettes is inelastic. If the government permanently increases the price of cigarettes, will the policy have a larger effect on smoking one year from now or five years from now?
If tax is 4 units per quantity, new quantity added is 3 units ,what will be the tax revenue,consumer surplus,producer surplus,total surplus
1. From the TUy schedule in Table below, (a) derive the MUy schedule, and (b) plot the TUy and the MUy schedules and indicate the saturation point
3.b. Suppose there is a change in the demand of cold drinks from 700 Units to 1000 Units because of the fall in the price from Rs 15 to Rs 10. Calculate the price elasticity of cold drinks.
Is supply of motorcycle is elastic or inelastic?
Suppose that a firm’s production function is Q =10 K^(3/4)L^(1/4). The cost of a unit of labor is $1 and the cost of a unit of capital is $3. The manager of this firm is interested in finding the following information:
a) Type of returns to scale and the marginal products of labor and capital.
b) The marginal rate of technical substitution of labor for capital. Graph the isoquant map.
c) The firm is currently producing 100 units of output. Find the optimal cost-minimizing quantities of labor and capital. Graphically illustrate this optimal solution using isoquants and isocost lines. What is the minimum total cost?
d) The manager now wants to know the K/L ratio to produce anyoutput level at the minimum total cost. Represent graphically the expansion path in the long run.
