Briefly explain the importance of forecasting for managers, Managerial Economics

Assignment Help:

Question:

i) Briefly explain the importance of forecasting for managers?

ii) To what extent will managers rely on surveys in business forecasting?

iii) What do you meant the quantitative methods of forecasting?

iv) Consider John Corporation is a personal computer retailer. The company hires an economist to determine the demand for its product and reports the following equation:

Qa = 100 - 2Pa + Pb + 0.5Y

where Qa is the demand for the company's product, Pa is the price charged by the company, Pb is the price of computers from another company and Y is the income per capita.

a. Evaluate whether demand is elastic or not.

b. Evaluate the cross elasticity of demand. Are the products substitutes or complements. Describe

c. Evaluate the income elasticity of demand. Interpret your result.

Pa = 10
Pb = 2
Y = 50


Related Discussions:- Briefly explain the importance of forecasting for managers

Circular flow of income, Explain a circular flow of income in a frugal econ...

Explain a circular flow of income in a frugal econmomy with diagram

Externality in economics, Explain the concept of externality in economics? ...

Explain the concept of externality in economics? Give one example of a positive and a  negative externality in Australia.

What is the demand function, What is the demand function It should be n...

What is the demand function It should be noted that by demand function, economists mean entire functional relationship which is the whole range of price-quantity relationship a

Explain what is meant by price discrimination, Problem 1: a) Explain wh...

Problem 1: a) Explain what is meant by ‘price discrimination' and what are the different types of price discrimination. b) Under what conditions is it possible and profitabl

Voluntary monopoly through combinations, To eliminate competition and there...

To eliminate competition and thereby secure higher prices, firms producing a specific product can come together and make monopoly agreements. These are called as industrial combina

Oligopoly, Classification of oligipoly

Classification of oligipoly

Economies and diseconomies of scale, Economies and diseconomies of scale ar...

Economies and diseconomies of scale are of two types- external andinternal. Internal economies and diseconomies are those which a firm reaps as a result of its own expansion. Conve

Model specification - search and matching model, Model Specification   ...

Model Specification   We proceed with the model specification in the following steps. 1)  The economy is composed of competitive firms (F  in number) and identical workers

Measurement of inflation, Measurement of Inflation The rate of inflati...

Measurement of Inflation The rate of inflation is measured using the Retail Price Index.  A retail Price Index aims to measure the change in the average price of a basket of g

Write Your Message!

Captcha
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