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A business's strategic choices are limited by economic conditions. When you arrive at strategy class, you will be asked to perform an environmental analysis. Read the Big Drive Auto Scenario. Research macroeconomic data that correspond to company data as reported by the Bureau of Economic Analysis. Perform an environmental analysis based on elasticities, a mix of fixed and variable costs, current market structure, pricing decisions, current economy as reflected in key economic indicators, the current credit market, and the global economy. Elucidate one opportunity for Big Drive Auto that requires a business management decision.
Discuss the manner in which an analyst would compare the relative profitability of the two potato chip segments.
Assume the economy starts out at point A. After that, the public anticipates that the Fed will use expansionary monetary strategy to shift the AD curve from AD1 to AD2.
Assuming that the current production rates are maintained at the three congress plants, that unusual should management select.
If the company will sell the number of units obtained in part d and wants to maintain the same profit as last year, what will its new price have to be.
Compute GDP for Joe using both the product and income approaches and show how they must agree.
Find out the optimal price-quantity if the firm can price discriminate but cannot charge a two part tariff.
Clarify why might the Homo sapiens production possibilities curve have shifted outward to right much more rapidly than persons of Neanderthals.
How could ABC use currency futures to hedge its position and what is the risk of hedging with currency futures.
Conclude how the abatement levels should be reallocated across the 2 industries to minimize costs.
How much is the uniform annual revenue in years 2 through 5 to achieve economic equivalence if the company decides to use MARR.
Illustrate what happens to the value of the owners' equity in this bank. Elucidate how large a decline in the value of bank assets would it take to reduce this bank's capital to zero.
Converse alternatives to GDP as a measure of economic benefits in a current economy.
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