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BUS 640 OLD ASH Course Material BUS 640 Entire Course BUS 640 Week 6 Final Paper (Wal-mart) • BUS 640 Week 1 DQ 1 • BUS 640 Week 1 DQ 2 BUS 640 Week 1 Economics BUS 640 Week 2 DQ 1 BUS 640 Week 2 DQ 2 BUS 640 Week 2 Consumer Demand Analysis BUS 640 Week 3 DQ 1 BUS 640 Week 3 DQ 2 BUS 640 Week 3 Production Cost Analysis and Estimation BUS 640 Week 4 DQ 1 BUS 640 Week 4 DQ 2 BUS 640 Week 4 Market • Describe the competitive environment in which the firm operates, the distribution of market power, and the strategic behavior of the firm and its competitors. Apply your knowledge of the theory of this company’s market structure. How does the company make pricing and production decisions? Is your observation supported by the theoretical models?
BUS 640 OLD ASH Course Material BUS 640 All New Assignments BUS 640 Week 1 DQ 1 Firm Objectives • Describe your answer for each item below in complete sentences, whenever it is necessary. Show all of your calculations and processes for the following points:Assuming the opportunity interest rate is 8%, what is the present value of the second alternative mentioned above? Which of the two alternatives should be chosen and why? • Firm Objectives. Why do some business firms pursue a triple-bottom-line outcome while others focus only on profit maximization? Please, use a real company example to illustrate your points
BUS 640 OLD ASH Course Material BUS 640 Week 1 DQ 2 Decision Making Under Uncertainty BUS 640 Week 1 Economics of Risk and Uncertainty Applied Problems • After driving to work on the I-20 highway for 1 month (20 workdays), they found the highway to be jammed 3 times. Assuming that this month is a good representation of all months ahead, should Edith and Mathew continue to use the highway for traveling to work? • Business 2 is a unique chicken wings dipping sauce with an ENPV of $60,000 and a standard deviation of $25,000. • a) Apply the coefficient-of-variation decision criterion to these alternatives to find out which is preferred by the angel investor, assuming that he/she is risk-averse.
BUS 640 OLD ASH Course Material BUS 640 Week 2 Consumer Demand Analysis and Estimation Applied Problems BUS 640 Week 2 DQ 1 Marginal Rate of Substitution • c. If the cost of producing Einstein’s Bagels is constant at $0.10 per bagel, should they reduce price and thereafter, sell more bagels (assume profit maximization is the company’s goal)? • d. Should Einstein Bagels spend more on advertising? • Marginal Rate of Substitution. What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitutes one product for another? Use examples to illustrate
BUS 640 OLD ASH Course Material BUS 640 Week 2 DQ 2 Demand Elasticity BUS 640 Week 3 DQ 1 Relevant Costs • What can we say about the price elasticity of demand for nicotine products (such as cigarettes, pipes, tobacco) in the group of nicotine addicted users, versus the group of "social smokers"? Can we say whose demand is likely to be more elastic? Why? • The second partner wants to keep the old name and argues, “We have already paid for business cards, vehicle paint, signage, and ads in Yellow Pages”. Evaluate the arguments of the two partners. Explain and illustrate their points by identifying the relevant and irrelevant costs for this decision.
BUS 640 OLD ASH Course Material BUS 640 Week 3 DQ 2 Contribution Analysis BUS 640 Week 3 Production Cost Analysis and Estimation Applied Problems • Contribution Analysis. Explain what is meant by “contribution analysis”. Carefully define the term and provide examples to illustrate it. • 3. Over the past 12 months the Four Winds Novelty Company firm has recorded its internet sales (equals monthly output levels) and its monthly total variable costs (TVC) for a particular novelty item as shown in the following table. Sales have grown over this period with relatively few shocks due to uncontrollable weather, political and sporting events.
BUS 640 OLD ASH Course Material BUS 640 Week 4 DQ 1 Strategic Behavior Oligopolies BUS 640 Week 4 DQ 2 Local Market Power • Discuss this case in the context of market structure and strategic behavior. What market structure do these firms operate in? Why did Microsoft need to preserve competitiveness in the industry? What was Microsoft afraid of in the event that Apple did not survive? • An analyst at Bulls Eye is recommending to the manager to raise prices, so that profitability can be improved. The manager is unsure of this strategy as recent data points to increasing numbers of individuals shopping more and more. What are the pros and cons of raising the prices at Bulls Eye and would that strategy be profitable?
BUS 640 OLD ASH Course Material BUS 640 Week 4 Journal Economics in News BUS 640 Week 4 Market Structures and Pricing • BUS 640 Week 4 Journal Economics in News • 2. Greener Grass Company (GGC) competes with its main rival, Better Lawns and Gardens (BLG), in the supply and installation of in-ground lawn watering systems in the wealthy western suburbs of a major east-coast city. Last year, GGC’s price for the typical lawn system was $1,995 compared with BLG’s price of $2,100.
BUS 640 OLD ASH Course Material BUS 640 Week 5 DQ 1 Good Will in Price Bidding BUS 640 Week 5 DQ 2 New Product Introduction • Good Will in Price Bidding. Sometimes, a bidder on a work contract may bid lower than what would maximize his/her profit from the contract and the reason for that is to create goodwill (to increase expected future business from the buyer). How would you value the goodwill that is obtained in this way? • The Alka-Seltzer Plus was a spin-off of the original medicine, meant to relieve colds and flu. • The company has recently introduced a new and improved Alka-Seltzer Plus, as described in the TV ad: “The Cold Truth”, (please, watch the ad listed in the Required Readings)
BUS 640 OLD ASH Course Material BUS 640 Week 5 Price Quotes and Pricing Decisions Applied Problems BUS 640 Week 6 DQ 1 Game Theory and Strategic Behaviour • Price Quotes and Pricing Decisions Applied Problems. Please, complete the following 3 applied problems in a Word or Excel document. Show all your calculations and explain your results. Submit your assignment in the drop box by using the Assignment Submission button. • The following payoffs table shows the annual profits for GE and Maytag for the advertising spending and entry decisions that they are facing. • Based on this information, can GE successfully prevent Maytag from entering this market by increasing its advertising levels? What is the equilibrium outcome in this game?
BUS 640 OLD ASH Course Material BUS 640 Week 6 DQ 2 Sustainable Competitive Advantage • Sustainable Competitive Advantage. Describe the circumstances under which a firm chooses a low-cost strategy to attain sustainable competitive advantage. What about the situations when a differentiation strategy is chosen? Provide specific real world examples.
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