Managerial Economics
Get the financial data for a company or organization for five years. From the balance sheet and the income statement for the company or organization develop regression line formulae for each line item and predict those line item revenues and costs over the next five years. Don't do prediction for any item in the statement less than 10% of the total sales on the incomes statement or 10% of the total Assets. Lump all those values into one account.

Financial Data for Starbuck's Cafe

Projections for the Next Five Years

Line Item

Net Revenues From Retail Sales

Net Revenues From Specialty Sales

Total Net Revenues

Working Capital

Longterm Debt

Total Assets

200500

230000

250000

270000

300000

Shareholder's Equity

150750

180000

200000

220000

240000

Operating Income

320000

360000

410000

485000

520000

Internet Related Investment Losses

Net Earnings

180000

210000

260000

285000

300000

Net Earning Per Common Share

Too small to tell from graph

Long-Term Debt cannot be reduced to below zero as the linear regression suggests.

Internet Related Losses is also not a good fit. The regression line tells us that the loss will continue upward. However…...

Managerial Economics Question Set
The demand function for Good X is defined as Qx = 75-2Px - 1.5Py, where Py is the price of Good Y. Calculate the price elasticity of demand using the point formula for Px = 20 and Py = 10. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect to Good X.

Py

Substitute Px = 20 and Py = 10:

To find PED, another variable point is needed:

Increase Px by 15% (23),

6/20 x 100% = -30%

PED = -30/15 = -2

Because PED < -1, the demand is price elastic. (A rise in the price by $1 results in a reduction in Q. Of 2).

Let Py increase by 50% = 15

When Py increase, Qx= 75-2(20) - 1.5(15) = 12.5

The percentage of change in Qx = -(20-12.5)/20 x 100% = -37.5%

To find XED, use…...

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References

Gwartney, J.A., Stroup, R.L., Sobel, R.S., & Macpherson, D.A. (2010). Macroeconomics: Private and public choice. (13th ed.). Mason, OH: Cengage Learning.

Managerial economics, there are variety of structures and philosophies that companies will use to maximize their profit margins. This is accomplished through taking these concepts and continually adapting them in order to achieve these objectives. To fully understand how this applies requires examining an employer. This will be achieved by providing a description of the company, describing any problems they are facing, analyzing the dimensions of the job and studying the executive / employee compensation packages. Together, these different elements will highlight the underlying strengths and weaknesses of the organization. It is at this point, when specific insights can be provided that will help the firm adapt with the challenges they are facing inside the marketplace.
Provide a description of the company that you work for. As part of your description include a discussion of the type of organizational structure.

The company that we work for is a large electronics retailer called…...

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References

Radio Shack. (2012). Yahoo Finance. Retrieved from:  http://finance.yahoo.com/q/pr?s=RSH+Profile 

Radio Shack Corp. (2012). Salary.com. Retrieved from:  http://www1.salary.com/RADIOSHACK-CORP-Executive-Salaries.html 

Radio Shack Reports Financial Results. (2013). Market Watch. Retrieved from:  http://www.marketwatch.com/story/radioshack-reports-financial-results-for-fourth-quarter-and-full-year-2012-2013-02-26 

Margo, M. (2008). 6 Confessions of a Former Radio Shack Employee. Consumerist. Retrieved from:  http://consumerist.com/2008/01/11/6-confessions-of-a-former-radioshack-employee/

Managerial Decision Making
Walmart is the largest retail store outlet in the United States. The business operations that are done by Walmart as an establishment encompasses cafeterias, hypermarkets, retail supply stores and also warehouse clubs. Some of the risk factors that influence the company include domestic and international macro-economic factors, lack of response to consumer preferences or trends, obstacles in the expansion and extension of the international operations of the company, changes in laws, and issues in aspects of labor. The market structure in which the company is set in is monopolistic competition. This is because there are numerous buyers and sellers in the market and there is freedom of entry and exit from the industry. Of course the company makes its pricing decisions and production decisions on the basis of its market structure. Therefore the company has to set low prices because it is set in a market that has…...

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References

Wal-Mart Stores, Inc. FORM 10-K. (2014). United States Securities and Exchange Commission. Retrieved from:  http://www.sec.gov/Archives/edgar/data/104169/000010416914000019/wmtform10-kx13114.htm 

Young, A. (2014). Wal-Mart Just Revealed How Poor Its Customers Are. Business Insider. Retrieved from:  http://www.businessinsider.com/wal-mart-says-food-stamps-are-a-risk-2014-3 

Douglas, E. (2012). Managerial Economics (1st ed.). San Diego, CA: Bridgepoint Education.

Walmart Website. (2015). Retrieved from:  http://www.walmart.com/

Managerial Economics
Telecommunications has changed dramatically in recent years and continues to show signs of future change. The introduction of the smart phone has shifted technology away from communication via telephone. New applications allow users to use their phone as a walkie-talkie, way to access social-networks such as Facebook, a way to access email, skype and texting within applications. This changes the way customers approach buying a plan. There is less of a need for a large amount of minutes, but more of a need for unlimited, high speech internet. In addition, the customer base has grown as a wider range of people embrace the cell phone. Competition has increased. Now, some service providers do not require a contract and offer pay as you go services. In order to gain and keep customers, companies boast of faster connection speeds, cheaper services and better phones.

Retail merchandising has not seen recent changes in…...

Dr. Roubini argues that the need for spending to increase the fluidity of funds through the Chinese economy will do much to provide for global economic growth. It is atypical for him to sound a positive note about growth, yet he sees the investment and acceleration of the Chinese financial system as being essential for growth globally. The cautionary note about capital investment in China to the point of overcapacity is also critical for balance of trade globally.
References

Clement, D. "Explaining Growth " the Region 1 ep. 2010:

Geert Hofstede, and Robert R. McCrae. "Personality and Culture Revisited: Linking Traits and Dimensions of Culture. " Cross - Cultural Research 38.1 (2004): 52.

Lin, H., and E. Lin. "FDI, Trade, and Product Innovation: Theory and Evidence. " outhern Economic Journal 77.2 (2010): 434-464.

Nouriel Roubini. "The Confucian Consumer: even reasons why the Chinese save, when they really should be spending.. " Newsweek 24 Jan.…...

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Seventh, the average citizen in China doesn't save more than one in Hong Kong, Singapore, or East Asia: they are all Confucian savers, and tend to salt away a third of after-tax income. A big difference, however, is that a whopping 25% of savings in China is in the form of the retained earnings of the corporate sector, mostly state-owned enterprises (SOEs). In most private economies, those firms' profits would become dividends that would increase household income and thus consumption. In China, they become retained profits that go into more capital accumulation and excess capacity. The Chinese policy of an undervalued currency and low cost of capital for public firms (and thus low return to savings for households) has implied a massive transfer of income from households (that thus can't spend) to SOEs (that thus overinvest). Short of privatizing the SOEs or massively taxing their profits and transferring that income to households, savings will remain too high, consumption too low, and investment excessive. Yet the SOEs are politically powerful while households are impotent, so reform could prove a major challenge.

Clearly China needs to radically change its broken growth model in the direction of reduced exports, investment and savings, and increased consumption. But there are structural -- and cultural -- reasons why the Chinese save so much and consume so little. Radical policy reforms may take more than a generation to rebalance the Chinese economy toward a more sustainable growth model.

Roubini is chairman of Roubini Global Economics, professor at the Stern School of Business at NYU, and coauthor of Crisis Economics (Penguin, 2010).

Conversely, the optimal strategy for Firm 2 is to charge low prices while Firm 1 charges high prices, a scenario which generates a 6% increase in profits for Firm 2, as opposed to a 1% gain for its competitor.
Determine the Nash equilibrium. (v) Is this a prisoner's dilemma? How do you know?

The Nash equilibrium in this payoff matrix is demonstrated when both Firm 1 and Firm 2 elect to charge high prices. In addition to producing identical 5% increases in profit for both firms, neither firm has an incentive to lower prices, and thus neither firm stands to gain by unilaterally adjusting its pricing policy.

2.) espond to the charge that immigrants flood the labor market and drive down wages in the U.S.

As the increasingly politicized nature of America's immigration debate has been compounded by the effects of a prolonged national recession, major media outlets and economic pundits have decried…...

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References

Camarota, S.A. (2011, October 11). More immigrants, lower wages. The New York Times. Retrieved from   the-american-work-ethic-2/wages-and-benefits-are-vital-to-hard-workhttp://www.nytimes.com/roomfordebate/2011/10/09/what-happened-to -

No matter the exact figure, however, Sarah would have to earn an additional amount equal to the difference between renting an buying the building, as both options represent divergent investment strategies.
2.) According to Milton Friedman, "Business has only one social responsibility, to make profits (as long as it stays within the legal and moral rules of the game established by society). Few trends could so thoroughly undermine the very foundations of our society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible." Explain why you agree with such a statement.

his controversial statement by respected economist Milton Friedman poses an intriguing dilemma for executives to consider: What is a company's first and foremost priority, the generation of wealth or acting in a socially responsible manner? By flatly asserting that an enterprise possesses a sole social responsibility, to…...

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This question is impossible to answer without knowing the purchase price Sarah paid for the building, as this figure is crucial to calculating the economic profit formula. No matter the exact figure, however, Sarah would have to earn an additional amount equal to the difference between renting an buying the building, as both options represent divergent investment strategies.

2.) According to Milton Friedman, "Business has only one social responsibility, to make profits (as long as it stays within the legal and moral rules of the game established by society). Few trends could so thoroughly undermine the very foundations of our society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible." Explain why you agree with such a statement.

This controversial statement by respected economist Milton Friedman poses an intriguing dilemma for executives to consider: What is a company's first and foremost priority, the generation of wealth or acting in a socially responsible manner? By flatly asserting that an enterprise possesses a sole social responsibility, to increase profit margins and pay dividends to stockholders, Friedman is launching a defense of capitalism's theoretical foundations. With the national economy in freefall since 2007, however, major corporations are now accepting taxpayer-funded government bailouts, and average consumers are paying far more for basic goods and services than they have before, which forces one to reconsider the accuracy of Friedman's platform. If a company has no further social responsibility than the creation of profits, as Friedman declares, than it would be reasonable to extend that premise to mean that society has no further responsibility to support a company when profit margins are erased and bankruptcy looms. The federal government has consistently demonstrated that society is willing to prop a failing company up momentarily, provided that company's executive management achieve a reversal of fortune and return to a profitable business model, so the concept of reciprocity would suggest that major corporations should return the favor. If General Motors and Citibank, both recipients of taxpayer-funded bailouts to remain viable, had adopted the social responsibility policies enacted and embraced by Target, rather than gamble on risky investment strategies in the pursuit of greater profit, perhaps they would have weathered the recession's economic storm without relying on assistance to survive.

Whole Foods
Managerial economics

Managerial economics: Whole Foods

In many ways, Whole Foods defies current assumptions of what constitutes a successful company strategy. It is an organic niche supermarket that prices its products relatively high in relation to its competitors. Yet it has become wildly successful in recent years, even defying conventional predictions of its likely demise during the credit crisis of 2008. This paper will explore the 'secret' of Whole Foods success using the core principles of managerial economics. Concepts germane to managerial economics include: exploiting the elements of effective leadership; ethics programs and the ethical orientation of the company; risk-taking; optimizing organizational structure; optimizing strategic control; and the need for balance between rewards, culture, and boundaries.

The elements of effective leadership and ethics

When Whole Foods began as the brainchild of current CEO John Mackey, its product was what distinguished it from its competitors. Mackey has been called an effective leader because of…...

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References

Fishman, C. (1996). Whole Foods is all teams. Fast Company. Retrieved:

 http://www.fastcompany.com/26671/whole-foods-all-teams 

Gasparro, A. (2012). Whole Foods aims to alter 'price perception' as it expands. The Wall Street

Journal. Retrieved:  http://online.wsj.com/news/articles/SB10001424052970204883304577223383094392986

Managerial Economics: The Demand & Supply Model
Managerial economics is the application of the economic theory using quantitative and statistical tools to analyze how organizations can achieve their aims and objectives. In other words, the managerial economics use the decision science analysis using the econometrics and microeconomic theories to analyze how organizations can achieve their aims and objectives efficiently by maximizing their profits through the combination of inputs such as capital, skilled labor, and raw materials. The managerial economics is also concerned with the ability of firms to manage legal constraints such as health and safety standards, minimum wage laws, and pollution emission standards. Similar to the private organizations that seek to maximize profits through the managerial economics, the non-profits organizations also face some constraints when attempting to reach their goals, however, the constraints may differ from a case to case. (Bhat, & au, 2008).

The objective of this paper is to…...

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Reference

Maurice, T. (2008). Managerial Economics. (9th Edition). McGraw-Hill/Irwin.

Bhat, M.S., and Rau, A.V. (2008). Managerial Economics and Financial Analysis, Hyderabad, IND BS Publications, 2008. ProQuest ebrary.

Townsend, H. (1995). Foundations of Business Economics, Market and Prices. London, GBR: Routledge, 1995. ProQuest ebrary.

Managerial Economics
What does your company produce? What utility or benefits does it provide to the consumer? How do consumers use it?

The company is one of the top luxury carpet manufacturers in the world. The benefits provided by the luxury carpets include; elegance, class, status, comfort and durability. The primary use of luxury carpets by the consumer is for decoration of home or office interior spaces.

What is your company's history with this product or service?

Deluxe Carpets has been in the market for more than 250 years. This company is based in rural England, collects plants from all over the world and then exports a major portion of their turnover. It is the biggest market including United States.

What does the competition in the market look like for this product or service?

There is good competition in the market because some other companies offer low cost alternative products.

What actions has your company taken to…...

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References

Boundless. (2015, July 21). Impact of Price on Consumer Choices. Retrieved from Boundless Economics: https://www.boundless.com/economics/textbooks/boundless-economics-textbook/consumer-choice-and-utility-5/theory-of-consumer-choice-

Boundless. (2015, July 21). Markup Pricing. Retrieved Febuary 17, 2016, from Boundless Marketing: https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/pricing-8/general-pricing-strategies-62/markup-pricing-312-10616/

Glass, M. (2016, Febuary 17). 3 Types of Price Discrimination. Retrieved from Small Business:  http://smallbusiness.chron.com/3-types-price-discrimination-25634.html 

Tacke, G., & Hilleke, K. (n.d.). 7 reasons why your price increases fail (and your bottom line suffers). Retrieved Febuary 17, 2016, from Whiteboard: http://www.whiteboardmag.com/do-you-know-the-impact-of-pricing-on-your-business/

economic terms, such as scarcity and positive and normative economics, with the proposed goals of understanding the way that resources are part of the production process and of the decision making process within an economic entity.
As Milton Freedman has pointed out, positive economics describes and discusses "what is," while normative economics described "what ought to be" (Friedman, 1953). The distinction between these two notions is giving by the level of empirical knowledge in each case. Positive economics is the part of economic that uses empirical explanations for given economic facts and for the analysis. The conclusions in positive economics are drawn based on real-world data and their analysis.

Normative economics, on the other hand, is a more theoretical approach to economics and economic analysis, whereby conclusions and explanations are not necessarily drawn through the analysis of data and economic statistics and information, but through a subjective analysis of the individual.…...

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Bibliography

1. Friedman, Milton. (1953). The Methodology of Positive Economics. Essays in Positive Economics

Oceanic Cable provides pay-per-view coverage of all the University of Hawaii football games. The cost to purchase a single game is $12.95 if you live on Oahu, but is only $5 if you live on one of the other Hawaiian Islands. You can also choose to purchase the entire season of games for $75 if you live on Oahu and $25 if you live on a neighbor island. Given the pricing policy Oceanic has chosen, what goal might they have? Do you think the pricing policy is an effective way to achieve that goal? If not, what other pricing policies might Oceanic use?
For the most part, price is directly related with the demand of products. In general, the higher the price charged for a good or service, the lower the quantity that will be demanded on that product. A number of variables affect price which include but are not limited…...

Price: The customer will be able to choose from a wide variety of prices, starting with $15 and ending with $2,000. The average retail price is of $100.00 a bottle of specialty wine, with an average fixed cost per bottle of $50. The $50 difference allows me to reduce the retail price if I find this is necessary to attract customers. I could also implement various pricing strategies, such as the penetration one in the beginning and the variable one after the penetration.

Break-Even Analysis: It sees that I would start making profits after I sell 8 bottles of wine. This would not however be true if I sell 8 bottles of the cheapest wines. The implemented price and the incurred costs once again allow me to joggle.

Industry Features: This may be one of the most important aspects of the new business, mostly given the recent talks and figures on a…...

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References

Thomas, C.R., Maurice, C., 2008, Managerial Economics, 9th Edition, McGraw-Hill/Irwin, the McGraw-Hill Companies

2008, Financial Calculators - Breakeven Analysis,   accessed on November 24, 2008http://www.dinkytown.net/java/BreakEven.htmllast 

2008, Investopedia, accessed on November 24, 2008http://www.investopedia.comlast

Managerial Econ
FedEx is a logistics company that "provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services." The company offers "integrated business applications through operating companies competing collectively and managed collaboratively" (FedEx.com, 2013). The company has a number of different units, including Express, Ground, Office, Customs Critical and other smaller businesses related to its core delivery businesses. The company has experienced a long-term rising trend in its revenues, mostly tied to the business cycle, but its net income has been more volatile over the past five years (MSN Moneycentral, 2013). FedEx has long been considered to be a bellwether firm for the economy, since it has a diversified corporate customer base and its stock price closely tracks industrial output (Goldstein, 2013).

Pattern of Change

FedEx has a relatively slow pace of change. The core technologies of the logistics business are transportation equipment, which has long-term business cycles.…...

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References

Doss, N. & Credeur, M. (2011). DHL reboots in U.S. after $9.6 billion bleed. Bloomberg. Retrieved November 29, 2013 from  http://www.bloomberg.com/news/2011-04-14/dhl-reboots-in-u-s-after-9-6-billion-bleed-freight-markets.html 

FedEx.com. (2013). Company information. About FedEx. Retrieved November 29, 2013 from  http://about.van.FedEx.com/company-information 

Goldstein, S. (2013). Why FedEx is called a bellwether. MarketWatch. Retrieved November 29, 2013 from http://blogs.marketwatch.com/capitolreport/2013/09/18/why-FedEx-is-called-a-bellwether/

MSN Moneycentral. (2013). FedEx Corp. Retrieved November 29, 2013 from  http://investing.money.msn.com/investments/stock-income-statement/?symbol=fdx