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Optimal Decisions Using Marginal Analysis
As vice president of sales for a rapidly growing company, you are grappling with the question of expanding the size of your direct sales force (from its current level of 60 national salespeople). You are considering hiring from 5 to 10 additional personnel. How would you estimate the additional dollar cost of each additional sales person? Based on your companyâ??s past sales experience, how would you estimate the expected net revenue generated by an additional salesperson? (Be specific about the information you might use to derive this estimate.) How would you use these cost and revenue estimates to determine whether a sales force increase (or possibly a decrease) is warranted?
Suppose elasticity is -2,price is $10, and marginal cost is $8, should you raise or lower price?
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
The percentage changes in quantity demanded divided by the percentage change in price.
The owner of the Los Angeles Dodgers has commissioned a study that showed the demand by fans for stadium seats (per playing date) to be P = 22 - 0.2Q-How much revenue does the owner make at the current price?
How income may change savings behavior
Elucidate what were some changes of the demand and supply fconditions that lead to the housing market bubble and collapse.
Elucidate as carefully as you can why borrowers would be willing to pay a higher rate of interest.
Compute the cross-price elasticity of demand between goods X and Y at the given prices.
Say if the following statement is true or false and why-Exports depend only on the demand of foreign countries for our products and therefore our exporting
Illustrate the potential problems of economic transition from a planned economy to a competitive free-market economy.
Between your answers to parts b and c, which prices/capacity are best applied from a social welfare perspective? Why?
You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university.
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