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? why or why non? MUw/Pw=50/10=5 MUc/Pc=40/4=10 afterward counting out the benefit for the wine-colored and the cheese it is nett that Bridget is not making the utility maximizing choice. For the break buck played out 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 altogether at geniusment disbursement more than 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 social club 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 special 5 units of satis faction up until the point the marginal utility for both be equal. Chapter 6 Question 1 a) What implicit assumptions are the publishers and the analyst making about set snap fastener? 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 set the total revenue will increase. Chapter 7 Question 1 a) deal the statistical significance of the disputation estimates a, b, c, and d using the p-values. ar the signs of b , c, and d consistent with the supposition! 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 agree due to the fact that if they sell fewer cans of lawn 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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