{"id":10576,"date":"2021-10-22T19:57:04","date_gmt":"2021-10-22T19:57:04","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/need-someone-good-expert-in-economics\/"},"modified":"2021-10-22T19:57:04","modified_gmt":"2021-10-22T19:57:04","slug":"need-someone-good-expert-in-economics","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/need-someone-good-expert-in-economics\/","title":{"rendered":"Need someone good expert in economics"},"content":{"rendered":"
\n

1. A local supermarket lowers the price of its Atlantic Salmon fillets from $12\/lb. to $9.00\/lb.<\/p>\n

Sales increase by 20 percent. The store manager notices that T-bone steak sales decrease by<\/p>\n

15 percent.<\/p>\n

a. Calculate the arc price elasticity of salmon fillets. Explain what it means.<\/p>\n

b. Calculate the arc cross-price elasticity of T-bone steak. Based on your calculation is T-<\/p>\n

bone steak a substitute or a complement? Why?<\/p>\n

c. Was the price decision good or bad for the supermarket? Explain.<\/p>\n

d. If you were to estimate a demand equation for salmon fillets, which variables would you<\/p>\n

choose as explanatory variables?<\/p>\n

2. One of the leading TV producers has estimated the following demand equation after<\/p>\n

analyzing 36 regional markets:<\/p>\n

Q = + 25,000 \u2013 50P + 25A + 20 cP<\/p>\n

– 40 CA<\/p>\n

+ 120 I<\/p>\n

(12000) (22.2) (12) (8.5) (52) (55)<\/p>\n

R 2 = 0.82 F = 32.26<\/p>\n

The variables and their assumed values are<\/p>\n

Q = Quantity<\/p>\n

P = Price of the basic Model = 600 (dollars)<\/p>\n

A = Advertising Expenditures = 100 (thousand dollars)<\/p>\n

CP<\/p>\n

= Average price of the competitor\u2019s product = 700 (dollars)<\/p>\n

CA<\/p>\n

= competitor\u2019s advertising expenditures = 80 (thousand dollars)<\/p>\n

I = per capita income = 50 (thousand dollars)<\/p>\n

a. Compute the elasticities for each variable. On this basis, discuss the relative impact that<\/p>\n

each variable has on the demand. What implications do these results have for the firm\u2019s<\/p>\n

marketing, pricing, and production policies?<\/p>\n

b. What would be the effect of a 6 unit increase in the competitor\u2019s advertising<\/p>\n

expenditures?<\/p>\n

c. What would be the change in your advertising expenditures to offset your competitor\u2019s<\/p>\n

strategy?<\/p>\n

d. Conduct a t-test for the statistical significance of each variable. Discuss the results of the<\/p>\n

t-tests in light of the policy implications mentioned.<\/p>\n

e. What proportion of the variation in sales is explained by the independent variables in the<\/p>\n

equation? How confident are you about this answer? Explain conducting an F-test.<\/p>\n

3. Given the Production Function of a perfectly competitive firm, Q = 120L + 9L 2 – 0.5L 3 ,<\/p>\n

where Q = Output and L = labor input<\/p>\n

a. At what value of L will Diminishing Returns take effect?<\/p>\n

b. Calculate the range of values for labor over which stages I, II, and III occur?<\/p>\n

c. Suppose that the wage rate is $60 and the price of output is $2 per unit. How many<\/p>\n

workers should the firm hire?<\/p>\n

d. If demand forecasts predict an output level between 3500 and 3800 in the next decade,<\/p>\n

what would be your long-run strategy to optimize the resources of your company?<\/p>\n

4. Suppose that you estimate the following cost function for your company, which is a firm<\/p>\n

operating in a monopolistically competitive market:<\/p>\n

23<\/p>\n

18080.5TCQQQ\uf03d\uf02d\uf02b<\/p>\n

You also estimate the following demand curve for the output you are producing.<\/p>\n

3608PQ\uf03d\uf02d<\/p>\n

a. Derive the equations for average cost and marginal cost curves.<\/p>\n

b. Over what range of output does economies of scale exist? Diseconomies of scale?<\/p>\n

c. How many units of output will you produce and what price will you charge for each unit?<\/p>\n

d. Is the company making a profit or loss at the suggested output level? How much?<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

1. A local supermarket lowers the price of its Atlantic Salmon fillets from $12\/lb. to $9.00\/lb. Sales increase by 20 percent. The store manager notices that T-bone steak sales decrease by 15 percent. a. Calculate the arc price elasticity of salmon fillets. Explain what it means. b. Calculate the arc cross-price elasticity of T-bone steak. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-10576","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/10576","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=10576"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/10576\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=10576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=10576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=10576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}