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O Meet - fki-aqbf-siv -> 8 https://meet.google.com/fki-aqbf-siv ... Ronique Browne is presenting The Learning Exchange 2021 English (en) - Ronique Browne Question 7 You are the manager of a firm and you are required to optimize the Cobb-Douglas function given the Not yet following parameters. The maximum amount of money available to spend is $340 where the price of K = 8 and the price of L = 4. That is P = 8 and P = 4. The function is given as q = K.4 L0.6 answered Marked out of 4 Ronique Browne What are the optimal values K, and Lo? P Flag question O a. K, 72, Lo = 18 O b. None of the above O. Ko z 68, Lo z 34 O d. Ko 34, Lo 68 Donalie Dailey Question 8 What is the price elasticity of demand given P = 12 and Q = 1300 – p². Not yet answered Select one: Marked out of 2 O a. -0.104 P Flag question O b. -0.21 OC -1.7 w Combined Assessment - Micro. O d. 0.104 You 8:41 PM| fki-aqbf-siv CC 8:41 PM P Type here to search WE 26°C A O O G ENG 12/10/2021 立

1. Consider the deterministic Brock-Mirman model studied in class. The discount factor is β ∈ (0, 1), the per-period utility function is u(c) = log(c) and the production function is f(k) = kα + (1 − δ)k, where δ = 1 and α ∈ (0, 1). Assume β = 0.99 and α = 0.3. (a) Compute the model's steady-state k∗. (b) Use the F and G that we derived in class by solving the Bellman equation by guess and verify to plot the optimal decision rules for k and c in the range [0.005, ¯k], where ¯k is the upper bound on the state space. Can you figure out such ¯k. If not, set ¯k to twice the steady-state capital stock. (c) Let the initial capital stock be k0 = 0.5k∗. Compute the time series for kt, t = 1, 2, ..., 200. Plot the time series. Now do the same for k0 = 1.5k∗. Do the sequences converge to k∗? 2. Now solve the model in question (1), with the same parameter values, by…

Variables typically included in a multivariate demand function (other than the price and quantity of the item the demand function represents) are consumer tastes and preferences, the number of buyers, spendable (disposable) income, prices of substitute goods, prices of complementary goods, advertising expenditures, weather, and expectations.  Recalling that the price of the item being considered is placed on the vertical axis, and the quantity on the horizontal axis, the other variables are termed demand shifters.  Please answer the following questions about the affect changes in other variables might have on the demand for the item.  These changes will either cause demand to increase (shift right) or decrease (shift left).  Use either word as applicable, for the short answer.   If the price of a good increases because the demand for it increases, What would you expect the demand for its complement to do?       If the demand for coffee beans increases, then what is likely to happen…

In Chapter 5 of Managerial Economics, Froeb discusses post-investment holdup as a sunk cost problem associated with contract-specific fixed investments. The modern theory of contracts is sometimes called the theory of joining wills, which simply means when parties make an agreement they are joining together to complete an endeavor of mutual interest. The problem with all contracts that endure over time is that not all potential challenges can be anticipated. The idea of joining wills is that parties will attempt to seek accommodations to advance their mutual interest, so long as the return on the invested activity pays off. Froeb illustrates the idea by the example of marriage as a contract.   Review the three scenarios below. Look for which, if any, of these scenarios presents an example of post-investment holdup. Your firm conducted a search for a new chief financial officer and hired a highly qualified candidate with a yearly salary of $250,000. After six months, the person left to…

Define managerial economics and its relation with economics theory and decision science?

You are attending the annual stockholders’ meeting of PIC Company. A fellow shareholder points out that the manager of PIC earned $100,000 last year, while the manager of a rival firm, CUP Enterprises, earned only $50,000. A motion is made to lower the salary of PIC’s manager. Given only this information, what should you do?

What are the assumptions of Arbitrage Pricing Theory (APT) model

Royal Dutch Shell has been doing business in Nigeria since the 1920s, and has announced new plans to develop oil and gas projects there. However, over the years Shell has confronted a series of episodes involving country risk. Shell’s operations are centred in Nigeria’s Ogoni region, where the local citizens have protested Shell’s drilling and refining activities, which are said to spoil the natural environment and reduce the amount of available farmland. Protestors also accuse Shell of extracting wealth from the region without adequately compensating local residents. Ogonis sabotaged Shell’s operations to such an extent that the firm suspended parts of its Nigerian operations. Shell also came under pressure to divest its Nigerian operations and to pay reparations to the locals. What proactive steps can Shell take to anticipate future country risk? What should Shell do to deal more effectively with country risk?

Larry Summers has worn many hats over the years, one of which was Chief Economist of the World Bank from 1991-1993. While he was holding that position, a memo from his office was leaked to the press and it caused a bit of a scandal. Using your understanding of neoclassical economic analysis, explain the logic behind Summers's proposal below. Then, once you have explained what's going on here, give your opinion. Do you agree or disagree? Why? DATE: December 12, 1991 TO: Distribution FR: Lawrence H. Summers Subject: GEP 'Dirty' Industries: Just between you and me, shouldn't the World Bank be encouraging MORE migration of the dirty industries to the LDCs [Less Developed Countries]? I can think of three reasons: 1) The measurements of the costs of health impairing pollution depends on the foregone earnings from increased morbidity and mortality. From this point of view a given amount of health impairing pollution should be done in the country with the lowest cost, which will be the country…

Q. Gamma Corporation, one of the firms that retains you as a financial analyst, is considering buying out Beta Corporation, a small manufacturing firm that is now barely operating at a profit. You recommend the buyout because you believe that new management could substantially reduce production costs, and thereby increase profit to a quite attractive level. You collect the following product information in order to convince the CEO at Gamma Corporation that Beta is indeed operating inefficiently: MPL = 10         PL =$20 MPK = 15        PK =$15 Explain how these data provide evidence of inefficiency. How could the new manager of Beta Corporation improve efficiency?   Thank you!

Q5. Graphically illustrate the impact of the management’s restructuring decision on the firm’s production function. Your diagram should have the amount of human intelligence on the horizontal axis and the number of decisions on whether to provide insurance on the vertical axis. Fully label your diagram. Note that there are no actual numbers given in this question: you may make them up or simply use appropriate notations. Briefly explain the key information of your diagram

An automobile manufacturer wants to understand the factors influencing car sales. The company gathers data on variables such as price, advertising expenditure, and consumer income. Econometric models are used to analyze how these variables affect car sales, aiding in strategic decision-making. In this context, econometrics is used for:A) Product designB) Understanding sales determinantsC) Assessing employee performanceD) Planning corporate events  Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.

QUESTION 14 Use the table below to create a nonlinear model based on the table to answer the following question(s). The Atlas Movies Theater is planning to reprice their ticket rates to maximize revenues. They have three classes of tickets: Classic, Silver, and Gold. The table below provides information on the average ticket sales, revenue and price elasticity on demand. They have a total seating capacity of 300. The table also provides the price range within which they plan to reduce their ticket rates. Atlas Movie Theater Ticketing Ticket Class Classic Silver Gold Current Rate 8.45 13.25 17.5 Total Capacity 300 $12.50 O $12.17 Average Daily Sold 150 80 30 Elasticity Price Range 6.5 11.5 15.5 -1.3 -2.25 -1.1 7.5 12.5 16.5 According to the nonlinear model, what is the new price for Silver tickets? O $12.06 $7.40

Explain why the AFC curve continually declines (and gets closer and closer to the quantity axis).

Attempts 9. Exercise 3.9 The Sydney Transportation Company operates an urban bus system in New South Wales, Australia. Economic analysis performed by the firm indicates that two major factors influence the demand for its services: fare levels and downtown parking rates. Table 1 presents information available from 2005 operations. Forecasts of future fares and hourly parking rates are presented in Table 2. Table 1 Average Daily Transit Riders Average Downtown Round-Trip Fare Parking Rate Year 2006 2007 Average / 1 (2005) 5,000 (Dollars) 1.00 1.25 (Dollars) 1.00 Table 2 Round-Trip Fare Average Parking Rates (Dollars) 2.50 2.50 (Dollars) 1.50 Sydney's economists supplied the following information so that the firm can estimate ridership. Based on past experience, the coefficient of cross elasticity between bus ridership and downtown parking rates is estimated at 0.2, given a fare of $1.00 per round trip. This is not expected to change for a fare increase to $1.25. The price elasticity of…

Why does the AFC curve continually decline (and get closer and closer to the quantity axis)?

CHECKOUT ABANDONMENT RATE. Buckle Beverage ran an online campaign to draw customers to a website to buy a branded travel mug. Buckle Beverage summarized the campaign's results: 20,000 emails sent 500 emails not delivered 3,000 emails opened 450 clickthroughs to the website 300 shopping carts started 243 checkout processes started 183 completed purchases What was the CHECKOUT ABANDONMENT RATE across this campaign? (Report your answer as a percent. Rounding: tenth of a percent.)

how can you relate the compensation design with a principal agent relationship in a firm? what cost does ESOPs ( employee stock options) tend to reduce, explain and why is there a need to reduce these costs?

Using the data below, what is the slope coefficient from a regression of Quantity on Price? It is probably easiest to use either Gretl or Jamovi as in the powerpoint example. (round your answer to the nearest 0.1, and it can be either positive or negative.) Quantity 17 24 23 39 55 54 60 76 71 80 Price 93 77 62 64 47 35 38 12 29 2

3. An econometrician regressed the cake sales on the cake price as well as the expenditure on advertising and its square. She obtained the following fitted regression equation, SALES = 109.719 – 7.640PRICE + 12.151ADVERT - 2.768ADVERT² Economic theory says the firm should increase advertising expenditure to the point where an extra $1 of expenditure results in an extra $1 of sales (i.e., marginal cost = marginal revenue). Choose the wrong statement. A. The term ADVERT2 captures some nonlinearity. A. This is an example of the (estimated) multivariate linear regression model. B. The estimated marginal revenue is 12.151 +2(−2.768)ADVERT. C. The estimated optimal level of advertising is approximately 2.014. D. A t test can be used to test the hypothesis that advertising does not affect sales. 4. Suppose we are interested in predicting the price of house using the interior area of house. Consider the regression model, PRICE = B1 + B2SQFT + yıPOOL + y2(POOL × SQFT) + u where PRICE is the…

Consider the following model of the factors that influence a person's annual wage: Y = β0 + β1X1 + β2X2 + β3X1X2 + β4X3 + u where Y = annual wage, in dollars X1= years of formal education X2 = age, in years X3 = variable equal to 1 if male, 0 otherwise U = error term Which of the following is the interpretation of β1 alone? The effect of X1 on Y when X2 = 0 The effect of X1 on Y when X2 is at its median value. The effect of X1 on Y, holding all else equal. The effect of X1 on Y when X2 is at its mean value.

how accountancy science be useful in the application of managerial economics by the firm?

Number 4 In 1924, Kleenex tissue was invented as a means to remove cold cream. The product was initially backed by a series of advertisements that included endorsements from the era's Hollywood stars, like Helen Hayes and Jean Harlow. After studying customer usage habits, however, the manufacturer (Kimberly-Clark) realized that many customers were using the product as a disposable handkerchief. The company switched its advertising focus, and sales more than doubled. Kimberly-Clark faced a significant challenge in trying to grow and defend its new product. At its core, Kleenex is simply tissue paper, a product that is not particularly difficult to replicate. As others in the consumer packaged goods industry saw the profits available from producing disposable handkerchiefs, they moved into the market. Kimberly-Clark management resorted to series of actions to obtain and maintain the leadership role in this industry. The actions included creating an innovative use for a relatively common…

Hello   What is the Euler equation used for in this model in equation 7. This is a model from asset pricing.  c_t = Consumption U = Utility

D2) Economics In the R program, with what code is the vector outoregressive model found? (for daily return)

3. A researcher is commissioned by a policy maker to conduct an empirical investigation. The researcher needs to collect data and hence asks the policy maker for a grant. After the grant application is approved the researcher demands for more financial support to collect more data and increase its sample size. The researcher claims that the advantage of a bigger sample size is removing the bias from estimation. < a) Explain omitted variable in linear regressions. < b) Based on what you learnt in this module, do you agree or disagree with the researcher's claim that "bigger sample size removes the omitted variable bias". Discuss. <

General Cereals is using a regression model to estimate the demand for Tweetie Sweeties, a whistle-shaped, sugar-coated breakfast cereal for children. The following (multiplicative exponential) demand function is being used: QD=6,280 P(−1.85)A2.05N2.70QD=6,280 P−1.85A2.05N2.70   where QDQD = quantity demanded, in 10-oz boxes PP = price per box, in dollars AA = advertising expenditures on daytime television, in dollars NN = proportion of the population under 12 years old, in percent   What is the point price elasticity of demand for Tweetie Sweeties? 2.05   2.70   -0.90   -1.85     What is the advertising elasticity of demand? 0.76   -1.85   2.70   2.05

The subtitle of the Commanding Heights series is “The Battle for the World Economy”. This episode is titled “The Battle of Ideas” and begins with the introduction of the two most important economists in the 20th century, John Maynard Keynes and Friedrich von Hayek. Keynes and Hayeks ideas were oppositional to each other, yet in the end, both men would have a profound impact in the world economy of the 20th century. Write a short essay of 1-2 paragraphs identifying the basic ideas of both men and explaining why Keynes dominated the early post WWII era and Hayek that late post WWII era.  I need to write a short essay around 3 paragraphs

Hello,  I am trying to find the equations on my calculator for the price-demand and price supply equations. The data is in the attached image.  I think I am doing something wrong, but not sure what.  I found the quadratic regression model for the first set of data using my calculator, but I used the p=D(x) as list one, and x, as list two. I came up with  0.028x^2-23x +5743  is this right? or do I need the reverse the order?    For the price-supply data I but the p=S(x) as list 1 and x as list 2 and I got the linear regression function: 2 5.1x+342   Can you please let me know if I am on the right track?

please provide an answer for the following questions

Consider the model of a firm that produces final goods using R&D and components as inputs, with cost dataas follows:Assembly: Total cost of production = PAQA = 400Earnings of High-Skilled Labor = WHHA = 100Earnings of Low-Skilled Labor = WLLA = 200Earnings of Capital = RKA = 100R&D: Total cost of production = PRQR = 400Earnings of High-Skilled Labor = WHHR = 175Earnings of Low-Skilled Labor = WLLR = 125Earnings of Capital = RKR = 100A) In which factor(s) is assembly intensive? In which factor(s) is R&D intensive?B) Suppose that due to the opening of trade, the price of assembly falls by ∆PAPA= −20%, the price of R&Dremains unchanged, ∆PRPR= 0%, and capital’s share earnings remains constant.C) What has happened to the relative wage of high-skilled/low-skilled labor? Does this match the predictions of the offshoring model?

Consider the model of a firm that produces final goods using R&D and components as inputs, with cost dataas follows:Assembly: Total cost of production = PAQA = 400Earnings of High-Skilled Labor = WHHA = 100Earnings of Low-Skilled Labor = WLLA = 200Earnings of Capital = RKA = 100R&D: Total cost of production = PRQR = 400Earnings of High-Skilled Labor = WHHR = 175Earnings of Low-Skilled Labor = WLLR = 125Earnings of Capital = RKR = 100A) Which factor is assembly intensive? In which factor(s) is R&D intensive?B) Suppose that due to the opening of trade, the price of assembly falls by ∆PA/PA = −20%, the price of R&D remains unchanged, ∆PR/PR = 0%, and capital’s share earnings remains constant.C) What has happened to the relative wage of high-skilled/low-skilled labor? Does this match the predictions of the offshoring model?