Recent Question

Empirical estimates of the price elasticity of demand 1. An income elasticity (Ey) of 2.0 indicates that for a ____ increase in income, ____ will increase by ____. a. one percent; quantity supplied; two units b. one unit; quantity supplied; two units c. one percent; quantity demanded; two percent d. one unit; quantity demanded; two units e. ten percent; quantity supplied; two percent 2. When demand elasticity is ____ in ab ...

Other / Other 23 Apr 2016

What is the probability that you zero in a week 1. Sources of positive net present value projects include a. buyer preferences for established brand names b. economies of large-scale production and distribution c. patent control of superior product designs or production techniques d. a and b only e. a, b, and c 2. Receiving $100 at the end of the next three years is worth more to me than receiving $260 right now, when my req ...

Other / Other 23 Apr 2016

The Cobb-Douglas production function has which of the following properties 1. The isoquants for inputs that are perfect complements for one another consist of a series of: a. right angles b. parallel lines c. concentric circles d. right triangles e. none of the above 2. Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have: a. increasing returns to scale b. con ...

Other / Other 23 Apr 2016

Which of the following is true with regards to a long-run cost function 1. Economies of Scope refers to situations where per unit costs are: a. Unaffected when two or more products are produced b. Reduced when two or more products are produced c. Increased when two or more products are produced d. Demonstrating constant returns to scale e. Demonstrating decreasing returns to scale 2. Economies of scale exist whenever long-run ...

Other / Other 23 Apr 2016

The form of economics most relevant to managerial decision-making 1. The form of economics most relevant to managerial decision-making within the firm is: a. macroeconomics b. welfare economics c. free-enterprise economics d. microeconomics e. none of the above 2. If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decis ...

Other / Other 23 Apr 2016

The coefficient of determination measures the proportion of the variation 1. In regression analysis, the existence of a high degree of intercorrelation among some or all of the explanatory variables in the regression equation constitutes: a. autocorrelation b. a simultaneous equation relationship c. nonlinearities d. heteroscedasticity e. multicollinearity 2. When using a multiplicative power function (Y = a X1b1 X2b2 X3b3 ...

Other / Other 23 Apr 2016

Risk Resulting from International Business 1. Risk Resulting from International Business. This chapter concentrates on possible benefits to a firm that increases its international business. a. What are some risks of international business that may not exist for local business? b. What does this chapter reveal about the relationship between an MNC’s degree of international business and its risk? Business Management Ass ...

Other / Other 23 Apr 2016

DFI to Achieve Economies of Scale. Bear Co. 1. DFI to Achieve Economies of Scale. Bear Co. and Viking, Inc., are automobile manufacturers that desire to benefit from economies of scale. Bear Co. has decided to establish distributorship subsidiaries in various countries, while Viking, Inc., has decided to establish manufac¬turing subsidiaries in various countries. Which firm is more likely to benefit from economies of scale? 2. DFI to ...

Other / Other 23 Apr 2016

Why are the cash flows of a purely domestic firm exposed 1. Exposure of Domestic Firms. Why are the cash flows of a purely domestic firm exposed to exchange rate fluctuations? 2. Transaction Exposure. Aggie Co. produces chemicals. It is a major exporter to Europe, where its main competition is from other U.S. exporters. All of these companies invoice the products in U.S. dollars. Is Aggie’s transaction exposure likely to be signif ...

Other / Other 23 Apr 2016

Reducing Economic Exposure 1. Reducing Economic Exposure. UVA Co. is a U.S. based MNC that obtains 40 percent of its foreign supplies from Thailand. It also borrows Thailand’s currency (the baht) from Thai banks and converts the baht to dollars to support U.S. operations. It currently receives about 10 percent of its revenue from Thai customers. Its sales to Thai customers are denominated in baht. Explain how UVA Co. can reduce its ...

Other / Other 23 Apr 2016