FIN 605 Entire Course of Kogod School of business

1. FIN 605 Entire Course of Kogod School of business American University Get help forFIN 605 Entire Course of Kogod School of business American University. We provide assignment, homework, discussions and case studies help for all subjects of Kogod School of business American Universityfor Session 2018-2019. We are providing FIN 605Assignment help, Notes, Study guides &FIN 605 write ups to the students of Kogod School of business American University. Just question answer is one of the Best Assignment helperof Advanced Studies in Introduction to Managerial Economics and Corporate Strategy (FIN 605).

2. Provides: - Kogod School of business American University Course Help FIN 605 Entire Course of Kogod School of business American University FIN 605 Week 1 Assignment Help | Kogod School of Business American University 1. Decide whether each of the following statements is true or false and explain why a. Fast food chains like McDonald’s, Burger King, and Wendy’s operate all over the United States. Therefore the market for fast food is a national market. b. Fast food chains like McDonald’s, Burger King, and Wendy’s operate all over the United States. Therefore the market for fast food is a national market.

3. c. Some consumers strongly prefer Pepsi and some strongly prefer Coke. Therefore, there is no single market for colas. 2. The following table shows the average retail price of butter and the Consumer Price Index from 1980 to2010. 1980 1990 2000 2010 ˇ CPI 100 158.5 6 $1.99 208.9 8 $2.52 218.06 Retail butter (salted, grade AA, per lb.) Price of $2.88 $1.8 8 a. Calculate the real price of butter in 1980 dollars. Has the real price increased/decreased/stayed the same since1980? b. What is the percentage change in the real price (1980dollars) from1980 to 2000? From 1998 to 2010? c. ConverttheCPIinto1990=100anddeterminetherealpriceofbutterin1990dollars. d. What is the percentage change in the real price (1990 dollars) from 1980 to 2000? Compare this with your answer in (b). What do you notice? Explain. (1) Suppose the demand curve for a product is given by Q=300-2P+4I, where I is average income measured in thousands of dollars. The supply curve is Q=3P-50.

4. a. If I=25, find the market clearing price and quantity for the product. b. If I=25, find the market clearing price and quantity for the product. c. Draw a graph to illustrate your answers. 2. Consider a competitive market for which the quantities demanded and supplied (per year) at various prices are given as follows: a. Calculate the price elasticity of demand when the price is $80 and when the price is $100. b. Calculate the price elasticity of demand when the price is $80 and when the price is $100. c. What are the equilibrium price and quantity? d. Suppose the government sets a price ceiling of $80. Will there be a shortage, and if so, how large will it be? Read details/61696/fin-605-week-1-assignment-help-kogod-school-of-business- american-university More: - https://www.justquestionanswer.com/homework-solution-

5. FIN 605 Week 2 Assignment Help | Homework Help 2 | Kogod School of Business American University Exercises 1, 3, 4, 5, 8, 9, & 10 1. Joe quits his computer programming job, where he was earning a salary of $50,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $24,000 per year. Innis first year of business he has the following expenses: salary paid to himself, $40,000; rent, $0; other expenses, $25,000. Find the accounting cost and the economic cost associated with Joe’s computer software business. 3. A firm has a fixed production costs of $5,000 and a constant marginal cost production of $500 per unit produced. a. What is the firm’s total cost function? Average cost? b. What is the firm’s total cost function? Average cost?

6. Read details/61697/fin-605-week-2-assignment-help-homework-help-2-kogod-school- of-business-american-university More:- https://www.justquestionanswer.com/homework-solution- FIN 605 Week 2 Case Study | Assignment Help | Kogod School of Business American University Case let: “The Compromise Effect ... And the New Thinking about Money Is That Your Irrationality Is Predictable“ View details/62663/fin-605-week-2-case-study-assignment-help-kogod-school-of- business-american-university Answer: - https://www.justquestionanswer.com/homework-solution- FIN 605 Week 4 Homework Help | Assignment Help | Kogod School of Business American University Exercises 1, 2, 4, 7, & 8

7. 1. Will an increase in the demand for a monopolist’s product always result in a higher price? Explain. Will an increase in the supply facing a monopolist buyer always result in a lower price? Explain. 2. Caterpillar Tractor, one of the largest producers of farm machinery in the world, has hired you to advise them on pricing policy. One of the things the company would like to know is how much a 5 percent increase in price is likely to reduce sales. What would you need to know to help the company with this problem? Explain why these facts are important. 4. A firm faces the following average revenue (demand) curve: P = 120 - 0.02Q Where Q is weekly production and P is price, measured in cents per unit. The firm’s cost function is given by C = 60Q + 25,000. Assume that the firm maximizes profits. a. What is the level of production, price, and total profit per week? b. If the government decides to levy a tax of 14 cents per unit on this product, what will be the new level of production, price, and profit? Read details/62664/fin-605-week-4-homework-help-assignment-help-kogod-school-of- business-american-university More: - https://www.justquestionanswer.com/homework-solution- FIN 605 Week 5 Homework | Assignment Help | Kogod School Of Business American University

8. 1. Price discrimination requires the ability to sort customers and the ability to prevent arbitrage. Explain how the following can function as price discrimination schemes and discuss both sorting and arbitrage: a. Requiring airline travelers to spend at least one Saturday night away from home to qualify for a low fare. b. Insisting on delivering cement to buyers and basing prices on buyers’ locations. c. Selling food processors along with coupons that can be sent to the manufacturer to obtain a $10 rebate. d. Offering temporary price cuts on bathroom tissue. e. Charging high-income patients more than low-income patients for plastic surgery. Q-3 In Example 11.1, we saw how producers of processed foods and related consumer goods use coupons as a means of price discrimination. Although coupons are widely used in the United States, that is not the case in other countries. In Germany, coupons are illegal. a. Does prohibiting the use of coupons in Germany make German consumers better off or worse off? b. Does prohibiting the use of coupons make German producers better off or worse off?

9. Read details/62665/fin-605-week-5-homework-assignment-help-kogod-school-of- business-american-university More:- https://www.justquestionanswer.com/homework-solution- FIN 605 Week 6 Homework | Assignment Help | Kogod School of Business American University ASSIGNMENT(S) DUE BY THE START OF THE LIVE SESSION: • Homework 6 – Chapter 13 Exercises 1, 3, 4, 5, 6 & 7 1. In many oligopolistic industries, the same firms compete over a long period of time, setting prices and observing each other’s behavior repeatedly. Given the large number of repetitions, why don’t collusive outcomes typically result? 3. Two computer firms, A and B, are planning to market network systems for office information management. Each firm can develop either a fast, high-quality system (High), or a slower, low-quality system (Low). Market research indicates that the resulting profits to each firm for the alternative strategies are given by the following payoff matrix:

10. Firm B High Low Firm A High 50, 40 60, 45 Low 55, 55 15, 20 a. If both firms make their decisions at the same time and follow maximin (low- risk) strategies, what will the outcome be? b. Suppose that both firms try to maximize profits, but that Firm A has a head start in planning and can commit first. Now what will be the outcome? What will be the outcome if Firm B has the head start in planning and can commit first? c. Getting a head start costs money. (You have to gear up a large engineering team.) Now consider the two-stage game in which, first, each firm decides how much money to spend to speed up its planning, and, second, it announces which product (H or L) it will produce. Which firm will spend more to speed up its planning? How much will it spend? Should the other firm spend anything to speed up its planning? Explain. Read details/62666/fin-605-week-6-homework-assignment-help-kogod-school-of- business-american-university More:- https://www.justquestionanswer.com/homework-solution-

11. FIN 605 Week 7 Homework | Assignment Help | Kogod School of Business American University Homework 7 – Chapter 12 o Exercises 3, 4, & 5 3. A monopolist can produce at a constant average (and marginal) cost of AC = MC = 5. It faces a market demand curve given by Q = 53 - P. a. Calculate the profit-maximizing price and quantity for this monopolist. Also calculate its profits. b. Suppose a second firm enters the market. Let Q1 be the output of the first firm and Q2 be the output of the second. Market demand is now given by Q1 + Q2 = 53 - P. Assuming that this second firm has the same costs as the first, write the profits of each firm as functions of Q1 and Q2. c. Suppose (as in the Cournot model) that each firm chooses its profit-maximizing level of output on the assumption that its competitor’s output is fixed. Find each firm’s “reaction curve” (i.e., the rule that gives its desired output in terms of its competitor’s output). d. Calculate the Cournot equilibrium (i.e., the values of Q1 and Q2 for which both firms are doing as well as they can give their competitors’ output). What are the resulting market price and profits of each firm?

12. e. Suppose there are N firms in the industry, all with the same constant marginal cost, MC = 5. Find the Cournot equilibrium. How much will each firm produce, what Will be the market price, and how much profit will each firm earn? Also, show that as N becomes large the market price approaches the price that would prevail under perfect competition. Read details/62667/fin-605-week-7-homework-assignment-help-kogod-school-of- business-american-university More:- https://www.justquestionanswer.com/homework-solution- FIN 605 Week 8 Homework | Assignment Help | Kogod School of Business American University Homework 8 – Chapter 12 o Exercises 6, 8, & 11

13. 6. firms in the market. Their costs are given by C1 = 60Q1 and C2 = 60Q2, where Q1 is the output of Firm 1 and Q2 the output of Firm 2. Price is determined by the following demand curve: Suppose that two identical firms produce widgets and that they are the only P = 300 - Q Where Q = Q1 + Q2. a. equilibrium. Find the Cournot-Nash equilibrium. Calculate the profit of each firm at this b. Suppose the two firms form a cartel to maximize joint profits. How many widgets will be produced? Calculate each firm’s profit. c. Suppose Firm 1 were the only firm in the industry. How would the market output and Firm 1’s profit differ from that found in part (b) above? d. Returning to the duopoly of part (b), suppose Firm 1 abides by the agreement, but Firm 2 cheats by increasing production. How many widgets will Firm 2 produce? What will be each firm’s profits? 8. Suppose the airline industry consisted of only two firms: American and Texas Air Corp. Let the two firms have identical cost functions, C(q) = 40q. Assume the demand curve for

14. the industry is given by P = 100 - Q and that each firm expects the other to behave as a Cournot competitor. a. Calculate the Cournot-Nash equilibrium for each firm, assuming that each chooses the output level that maximizes its profits when taking its rival’s output as given. What are the profits of each firm? b. What would be the equilibrium quantity if Texas Air had constant marginal and average costs of $25, and American had constant marginal and average costs of $40? c. Assuming that both firms have the original cost function, C(q) = 40q, how much should Texas Air be willing to invest to lower its marginal cost from $40 to $25, assuming that American will not follow suit? How much should American be willing to spend to reduce its marginal cost to $25, assuming that Texas Air will have marginal costs of $25 regardless of American’s actions? Read details/62668/fin-605-week-8-homework-assignment-help-kogod-school-of- business-american-university More: - https://www.justquestionanswer.com/homework-solution- FIN 605 Week 8 Final Exam | Assignment Help | Kogod School of Business American University FIN 605 — Managerial Economics and Corporate Strategy

15. Multiple Choice (15 points) Choose the best answer for each of the following questions. Each question is worth 3 points. 1. In economic terms, fixed costs are fixed with respect to changes in A) Output. B) Capital expenditure. C) Wages. D) Time. 2. A price taker is A) A firm that accepts different prices from different customers. B) A consumer who accepts different prices from different firms. C) A firm in a perfectly competitive market.

16. D) A firm that cannot influence the market price. E) Both C and D 3. When a firm charges each customer the maximum price that the customer is willing to pay, the firm A) Engages in a discrete pricing strategy. B) Charges the average reservation price. C) Engages in second-degree price discrimination. D) Engages in first-degree price discrimination. 4. Monopolistically competitive firms have monopoly power because they A) Face downward sloping demand curves. B) Are great in number. C) Have freedom of entry. D) Are free to advertise.

17. Read details/62669/fin-605-week-8-final-exam-assignment-help-kogod-school-of- business-american-university More: - https://www.justquestionanswer.com/homework-solution-