Compute the companies concentration measure

Reference no: EM1328445

Elasticity of Demand and other microeconomics questions

1. A major cereal manufacturer decides to lower prices from $3.60 to $3.00 per 15-ounce box. If quantity demanded increases by 18%, what is the price elasticity of demand? Is this an example of elastic or inelastic demand?

2. To increase state tax revenues, the Governor of California has proposed an additional sales tax on all automobiles deemed to be exotic in nature; that is, two door coupes and convertibles with a dealer sticker price of at least $100,000. Comment on the validity of this proposed tax.

3. Illustrate the each of the following in demand and supply diagrams:

a. An increase in demand, all things equal
b. A decrease in demand, all things equal
c. An increase in supply, all things equal
d. A decrease in supply, all things equal

THERE SHOULD BE 4 DIAGRAMS COMPLETED FOR THIS QUESTION. IF YOU HAVE PROBLEMS GRAPHING DIAGRAMS, THEN YOU CAN JUST DESCRIBE IN WORDS THE MOVEMENTS OF THE DEMAND AND SUPPLY FOR EACH OF THE 4 SCENARIOS ABOVE.

4. The market shares in the U.S. airline industry for 1986 were the
following:

United 17% Northwest 9%
American14% TWA 8%
Delta 12% Pan Am 7%
Eastern 12% Eight others 2% each

Calculate the 4-firm concentration measure. How would it change if Delta merged with United?

Reference no: EM1328445

Questions Cloud

How to consider changing the hibernate framework : This Application challenges you to evaluate connectivity issues between database management systems (DBMS) and the procedural programming languages.

Operations management and supply chain : Operations Management - Supply Chain - How can the members of the chain be convinced to allow the chain to be managed by one organization?

Why server side computing has been a more affordable : The Cloud, that is synonymous with the internet, became a common phrase which infers that everybody can keep files and records in a trusted site. So what is the difference between uploading a file to a file server and uploading a file to a cloud.

A stereotype that was not accurate : Sometimes an employee or co-worker surprises others at work through his/her expressed abilities that go beyond what is expected based

Compute the companies concentration measure : Compute the companies concentration measure. Explain how would it change if Delta merged with United States.

Determining the annual rate : Find out the compound amount if $6,400 is invested for 2 years at 12% compounded monthly. What difference would compounding daily make in this example?

Explain the integrated marketing communication : Explain the Integrated marketing communication and e-business technology and how does it fit into the technology of e-Business

Who manages a supply chain : Who manages a supply chain - How can the members of the chain be convinced to allow the chain to be managed by one organization?

Charismatic and transformational leadership across cultures : Do charismatic and transformational leadership generalize across cultures?

User Account

All Pages