NMIMS Global Access School for Continuing Education (NGA-SCE) Course: Business Economics SEM – I 1. Calculate Elasticity in the following cases: a) Assume that a business firm sells a product at the price of Rs 500. The firm has decided to reduce the price of the product to Rs 400. Consequently‚ the demand for the product is raised from 20‚000 units to 25‚000 units. Calculate the price elasticity of demand. ANSWER A: PRICE ELASTICITY OF DEMAND: MEANING: Price elasticity of demand
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$500‚000 x 14% = $70‚000 Explicit Costs: What is paid for products/services = $80‚000 Total Economic Costs: Implicit Costs + Explicit Costs = $70‚000 + $80‚000 = $150‚000 b) Economic Profit: Total Revenues – Total Economic Cost = $175‚000 - $150‚000 = $25‚000 c) Accounting Profit: Total Revenues – Explicit Costs = $175‚000 - $80‚000 = $95‚000 d) New Implicit Costs = $500‚000 x 20% = $100‚000 Economic Profit: $175‚000 – ($100‚000 + $80‚000) = $ (5‚000) Chapter Two Technical Problem 1 Qd
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1. The theory of consumer choice provides the foundation for understanding a. the structure of a firm. b. the profitability of a firm. c. a firm ’s product demand. d. a firm ’s product supply. ANS: C PTS: 1 DIF: 1 REF: 21-0 TOP: Consumer choice MSC: Definitional 2. The theory of consumer choice examines a. the determination of output in competitive markets. b. the tradeoffs inherent in decisions made by consumers. c. how consumers select inputs into manufacturing production processes. d. the determination
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1A) What is the definition of opportunity cost? The best alternative that we forgo‚ or give up‚ when we make a choice or a decision is called the opportunity cost of that decision. 1B) Eason wants to spend $15 to buy a pack of sandwiches or a bowl of fish-ball noodles form a street hawker. Explain the effect on Eason’s opportunity cost of buying the sandwiches if a cockroach is found inside the noodle soup. Eason’s opportunity cost of buying the sandwiches is a bowl of fish-ball noodles‚ however
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Code Subject Title Area Credits 1 COM 625 Accounting Theory Acc & Fin 3 2 COM 600 Managerial Economics Gen. Mgmt 3 3 COM 626 Financial Management Acc & Fin 3 4 COM 601 Quantitative Techniques Gen. Mgmt. 3 5 COM 620 Marketing Management MM 3 6 COM 602 Economic Environment of Business Gen. Mgmt. 3 7 COM 615 Organizational Behavior OLS 3 GM = General Management; Acc. & Fin. = Accounting
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THE UTILITY CONCEPT THE term utility refers to satisfaction a consumer gets from whatever goods and services he consumes. It will be useful to discuss between two utility concepts: (i) total utility (ii) marginal utility Total utility attained from a commodity refers to the sum total of satisfaction which a consumer receives by consuming the various units of the commodity. The more units he consumes‚ the greater will be his total satisfaction upto a certain point. As he keeps on
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fashioned to present a summary of Douglas North’s Noble Lecture “Economic Performance Through Time”. North is an Economist known for he research on economic history which he rewarded the Nobel Memorial Prize in Economic Sciences. His article is divided into seven sections. The first section is the introduction‚ which states that we need an effective analytical framework through which we can study performance of economies over time so that we can better understand economic change. North also states
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The purpose of this essay is to analyse the performance of Barratt Developments PLC as an example of any organisation in terms of business‚ economic and management concepts. One of the most important and influential elements of the business environment is the structure of the industry. How a firm performs depends on the state of its particular industry and the amount of competition it faces. (Book) To describe the characteristics of the modern construction industry we should look at the nature of
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Respondents answer to the question Are they Happy with the existing level of profit: 13% YES NO NOT SURE Per 14% 73% 1500 19000 5000 57450 23000 6000 19000 15000 29450 53000 20500 19000 31500 7000 19000 PROBLEMS IN DOING BUSINESS (a) Cost escalation/ Price increase of products EXTREME 0 STRONG 2 HIGH 6 YES 7 NO 0 0 2 4 No. of Respondent 6 8 (b) Increase of wages of employees EXTREME 0 STRONG 0 HIGH 2 YES
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“Statistical Treatment” Communication Reasearch 1 S.Y. 2013- 2014 T.F 7:00am – 8:30am MCS June 21‚ 2013 ILARIA L. PANDOLFI PROFESSOR ROSALIE CERVANTES I. Objectives: The learners are expected to: a. Determine what statistical treatment is all about. b. Choose their own right statistics in analysing their data. c. Follow the steps involving statistical treatment. d. Interpret the data involving tabulation. e. Provide answers to the drills. II. Outline
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