Does alexander machine tool produce inferior or normal goods

Assignment Help Managerial Economics
Reference no: EM13921770

For three years in a row, income among consumers has increased. Alexander Machine Tool has had sales increases in each of these three years. Does Alexander Machine Tool produce inferior or normal goods? Forecasts predict that income will continue to rise in the future. Should Alexander Machine Tool anticipate that demand for its products will continue to rise? Explain.

Reference no: EM13921770

Questions Cloud

Discuss the likely short-run and long-run effects : How can cross elasticities be used to help define the relevant firms in an industry? Suppose the price of heating oil increases significantly. Discuss the likely short-run and long-run effects.
In mass selection method the progenies are grow in : In mass selection method the progenies are grow in?
Discuss the legal position in this case : Frank Williams and Matilda Jackson met ten years ago. Three years later, Matilda moved into Frank's house, which he inherited from his parents. Discuss the legal position in this case
Partial anova table : What is the difference between linear impact and linear correlation?
Does alexander machine tool produce inferior or normal goods : For three years in a row, income among consumers has increased. Alexander Machine Tool has had sales increases in each of these three years. Does Alexander Machine Tool produce inferior or normal goods?
Whites test for homoscedasticity for first equation : Describe the steps you would use to undertake White's test for homoscedasticity for first equation and what assumption has been made about the error variance in first equation ?
Business requirements document for the project plan : Write a four to six (4-6) page original business requirements document for the project plan using the template provided. Note: The template is provided under the Additional Resources in the Student Center tab of the online course shell.
Fine company resources, capabilities, and core competencies : Assess the external threats affecting this corporation and the opportunities available to the corporation. Give your opinions on how the corporation should deal with the most serious threat and the greatest opportunity. Justify your answer.
Do you think that product a is likely to face an elastic : The cross elasticity between Product A and Product B is 10. Do you think that Product A is likely to face an elastic or inelastic demand curve? Explain.

Reviews

Write a Review

Managerial Economics Questions & Answers

  Estimate the value of the investment timing option

Tropical Sweets is planning a project that will cost $70 million and will create expected cash flows of $30 a year for next 3-years. The cost of capital for this type of project is 10% and the risk-free rate is 6%.

  Determine the depreciation and book value

Determine the gain/loss for tax purposes If the Group 5 and Group 7 assets are sold at the end of the planning period for a combined $500,000.

  Determine the official measure of the deficit

Determine the official measure of the deficit

  Analyzing current pricing decisions

Price comparison services on the Internet are a popular way for retailers to promote their products and a convenient way for customers to simultaneously obtain price quotes from many firms setting I identical product.

  Classify the product in terms of its income elasticity

They have their product priced at $30. Is this optimal and why or why not and what would you recommend their optimal price to be?

  Determine relevant factors to consider before making decisio

What need to be done Respond to the scenario with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates.

  Distinguish between returns to scale and returns to a factor

Distinguish between returns to scale and returns to a factor. Your company currently uses steel and aluminum in a production process. Steel costs $.50 per pound, and aluminum costs $1.00 per pound.

  Choosing numbers of workers

Ms. Smith, owner and manager of the Clear Duplicating Service located near a major university, is contemplating keeping her shop open after 4 pm.

  What assumption lies behind the shape of demand curve

What assumption lies behind the shape of demand curve and identify the firm's profit-maximizing output and price.

  What is current average product of labor for powerguns co

What is the current average product of labor for PowerGuns Co.? What is the current marginal product of machines? (Assume 1 unit increase in machines.)

  Improve the firms organizational performance

Reduce the current $1.04 quarterly dividend by 50% and utilize the capital to improve the firm's organizational performance - Bring back to the US a manufacturing facility from Taiwan to South Carolina-the State tax incentive will net the firm $56..

  Asymmetric shocks dealt with within a country

How are asymmetric shocks dealt with within a country? To what extent can this process be mirrored within the Eurozone?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd