Managerial Economics 510 Final Exam

Jul 14th, 2016
Studypool Tutor
Sullivan University
Price: $40 USD

Tutor description

Word Count: 844
Showing Page: 1/6
Question No. 1a.Q = 5000 - .514000 + .17500 + .216000 = 1950At this point of tuition Elasticity of demand:ED == -3.6b.We change the demand function to accommodate for the newly given parameter values:Q = 7500 - .414000 + .157500 + .216000 = 6225 students will enrol next year.The new demand elasticity is ED == -0.9To determine whether the advertising campaign is cost effective, you need to determine, whetherthe increased revenues from the advertising campaign exceed its costs.Revenues are given by R = (6225-1950)$14000 = 59,850,000 > 4,500,000So campaign is a cost effective one.Question No. 2a.b. Firm K has a dominant strategy in Strategy S. The Nash equilibrium is where Firm K doesStrategy S and Firm L does Strategy Q, with allocation ($7.5 mill, $14 mill).Question No. 3a.From my perspective john has to sell the house at a price of $75000 because his marginal costis $52000 which will lead to a contribution of $23000 and which is good for John.Chat convQuestion No. 4Question 4 Production should be allocated so the marginal profitability of yard furniture equalsthat of knick knacks. Why? Because if the profitability of one is greater than the other more ofthe former and less of the latter should be produced. y' (derivative)= 2-.002Ty marginalprofiatbility is 100(2-.002Ty) K'(derivative)= 20-.02Tk marginal profitability is 25(20-.02Tk) Sowe have 100(2-.002Ty)= 25(20-.02Tk) 200-.2Ty= 500-.5Tk .5Tk-.2Ty= 300 Tk+Ty= 1300(cons

Review from student

Studypool Student
" The best tutor out there!!!! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1829 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors