Applied Questions Week 3

Applied hesitancys Week 3 Brian Lillico BUS640: Managerial Economics Ashford University Chapter 5 Question 1 a) Is Brid halt make the public-service corporation-maximizing choice? wherefore or why non? MUw/Pw=50/10=5 MUc/Pc=40/4=10 afterward calculate out the profit for the fuddle and the cheese it is nett that Bridget is not making the utility maximizing choice. For the uttermost(a) buck spent on wine she current 5 units of propitiation and for the last dollar spend on cheese she received 10 units of ecstasy. As a result, Bridget could extend her over tout ensemble at peerlessment consumption much m stary on cheese then(prenominal) she is spending on wine. If she was making the utility-maximizing choice the marginal utility for both wine and cheese would be equal. b) If not what should she do instead? In come in for her to keep the same bills out flows she should spend one less dollar one wine and one more dollar on cheese. For all(pren ominal) dollar she exchanges she will receive an excess 5 units of satis faction up until the point the marginal utility for both be equal. Chapter 6 Question 1 a) What tacit assumptions are the publishers and the analyst making about set shot? According to publisher, if they were to increase the expenditure the total revenues would decrease, so he believes that the demand is elastic.

On the other(a)wise hand, the analyst believes the demand is inelastic, so by increasing the worth the total revenue will increase. Chapter 7 Question 1 a) deal the statistical significance of the line estimates a, b, c, and d using the p-values. ar the signs of b, c, and d consiste nt with the hypothesis of demand? All of ! the parameters estimates are significance according to the p-value and all of the signs are consistent with the theory of demand. B is a negatively match due to the fact that if they sell fewer cans of tennis balls the price will increase and if they sell more the price will decrease. On the other hand, c is positively correlated because as consumers income...If you want to get a full essay, order it on our website: OrderEssay.net

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