Managerial economics homework help?

Posted on 2014-04-14 09:42:00 in Economics by LIZ GONZALEZ

Assume the quantity of bananas is measured on the horizontal axis and the quantity of oranges is measured on the vertical axis. If John likes both bananas and oranges then his marginal rate of substitution along the indifference curve indicates:

Answer



how many oranges he is willing to give up to obtain one more banana.



how many additional oranges he wants to give up two bananas.



how many oranges he is willing to give up to get rid of one banana.



how many bananas he is willing to give up to get rid of one orange.





If a local bar increased the price of a pint of the local beer by 20%, it estimates the number of customers purchasing the local beer would decrease by 4%. Based on this data,

Answer



total revenue would increase because demand is elastic.



total revenue would decrease because demand is elastic.



total revenue would remain the same.



total revenue would increase because demand is inelastic.





ABC Inc has captured the market for school glue. It is preferred by both students and parents alike. It takes very little capitalization to enter the market but nobody successfully does. The glue clearly needs no patents or secret formulas. This type of market is called:

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pure or perfect competition.



monopolistic competition.



oligopoly.



monopoly.





Raymond pays $80 for tickets to see his favorite sports team play. With 12 minutes left in the game, his team is losing heavily and has no chance of winning the game. Raymond chooses to stay until the end of game because he wants to get the full value for his admission price. If Raymond were thinking as an economist, he should:

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leave the game now since the line to exit the stadium is shorter now





leave the game now if his marginal benefit of leaving is greater than marginal cost, since the admission price is a sunk cost



stay until the end of the game since he might be heckled on the way out



stay until the end of the game since his intuition is correct





If the demand for good X displays high and positive cross-price elasticity with respect to the price of good Y, then:

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the demand for good X is likely to have a low price elasticity



goods X and Y are complements

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