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

Ramsey pricing in detail, Hi Could you please help me with " Ramsey pricing...

Hi Could you please help me with " Ramsey pricing in detail " as I have an assignment.

What is production isoquant, Q. What is Production Isoquant? An isoquan...

Q. What is Production Isoquant? An isoquant demonstrates all those combinations of factors that produce the same level of output. An isoquant is also called as equal product cu

Generate a computer code for solidification situation, Generate a computer ...

Generate a computer code to simulate the following solidification situation during a casting process: The material is a well-known polymer known as PEEK (polyetheretherketo

Where does the firm operate, Where does the firm Operate? The firm wil...

Where does the firm Operate? The firm will avoid stages I, II and III and will instead choose stage II.  It will avoid stage I because this shall involve using the fixed facto

Isoquant analysis, ISOQUANT ANALYSIS In the long run it is possible fo...

ISOQUANT ANALYSIS In the long run it is possible for a firm to produce the same output using different combinations of two factors of production.  For instance it the two fact

Limitations of open market operations, Limitations of Open Market Operation...

Limitations of Open Market OperationsLimitations For their success central bank open market operation assume that commercial banks in the country will expand their credit port

Intended or planned investment, Intended or planned Investment Expendit...

Intended or planned Investment Expenditure on investment depends on business expectations on the chance of making profits and on the availability of funds for the purchase of p

Sat scores, 100 schools are given exactly one million dollars each in grant...

100 schools are given exactly one million dollars each in grant money. They can spend the money on any or all of three programs: math tutoring (math), kickball lessons (kickball),

Determine the studies of managerial economics, Determine the studies of Man...

Determine the studies of Managerial economics Managerial economics studies the application of techniques, principles as well as concepts of economics to managerial problems of

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