Economic analyst

 

Instructions: Answer all five questions in this problem set. Each question is worth 20 points and consists of sub-parts. Partial credit is possible. For any questions involving mathematical problem solving, show your work. Wrong answers without work shown will receive 0 points. For questions that request graphing, you may create graphs on your computer, or you can draw the picture on a piece of paper and upload a .jpg to the Word doc.

You are the economic analyst for Cereal Brand A. Two attributes are important to different consumer segments buying cereal: the amount of sugar in grams, and the amount of fiber in grams. You are targeting consumers that have stated they budget $5 for a box of cereal.
Cereal Brand Price Sugar (g) Fiber (g) Ratio Cereal per $5 Sugar per $5 Fiber per $5
A $2.69 11 4
B $2.99 10 6
C $3.99 11 3

Fill in the table above. Round to two decimal places whenever necessary.
Use the product attribute framework to graph the information above. Put sugar in grams on the y-axis and fiber in grams on the x-axis. Construct product rays and an efficiency frontier. Label the three competitors carefully.

 

 

 

 

Is it possible to draw an indifference map to suggest there is a consumer segment that would maximize utility by purchasing A? If so draw it. Describe their marginal rate of substitution, or if not, describe why.
The CEO is concerned that consumers think of A as being a low-quality product because it is inexpensive, and wants to raise price to $3.99 to compete with higher-quality cereals. Explain why you agree/disagree with this idea; if you agree, show this graphically and explain the impact on consumers in this market. If you disagree, what would be a more productive next step? Explain.
You sell good X. There are only two goods that people in your world can consume, good X and good Y. The average income of people in your world is $1000. Good Y costs $40. Good X costs $40. You decide to offer a buy two, get one promotion, limit one per customer.
Draw budget constraint (B1) defined by this scenario with Good Y on the y-axis and Good X on the x-axis prior to the promotion. Draw budget constraint (B2) defined by the promotion. Label all axes and intercepts clearly.

Imagine that both X and Y are normal goods. Draw an indifference map that shows a plausible equilibrium condition for the consumer prior to, and following, the promotion. Explain.

What is the consumer’s marginal rate of substitution at the optimal consumption point?

Would a buy two, get one promotion be better than offering 33% off for you as the seller? Explain. (You are not required to draw this change on your diagram, though it may be helpful.)

In the graph below, a firm produces gizmos using capital and labor. The firm’s budget is $3000. The wage rate of labor is $50 per hour.

 

 

 

 

 

 

 

 

 

 

What is the price of capital? Round to 2 decimal places if necessary.

How many units of output should the firm produce? Explain.

You would like to use additional capital and realize that you can maintain your output level at point A. Explain whether this would be a profit-maximizing choice, and why; if not, and you can afford point A, what should be done to fix it?

Consider part d completely separately from a-c above.
A perfectly competitive firm sells 15 units of output at the going market price of $10. Suppose its average fixed cost is $15 and its average variable cost is $8. Explain whether the firm should continue to produce or shut down.

Suppose the production function of automobiles is given by Q=K^(1⁄2) L^(1⁄2). Given a fixed amount of capital, the marginal product of labor is 0.5K1/2L-1/2.
What will happen to the marginal product of labor as the amount of labor rises, according to the production function? Why?
Suppose automakers in Country A and Country B produce on identical isoquants with this Cobb-Douglas production function and that labor costs are higher in Country A. Explain whether this means that workers in Country A are more productive than workers in Country B.
Now suppose automakers in both countries produce on identical isoquants, but the price of cars produced in country B is higher. Would autoworkers from Country A or Country B have a higher marginal product? Why?

Consider part d separately from parts a-c above:
A firm produces 4,000 units of output using 500 workers. Marginal cost is $10, the wage rate is $160, and total fixed cost is $100,000. What is average variable cost?

A monopolist has demand and cost functions given by:

P = 300 – 5Q
TC = 700 + 40Q
MC = 40
a. Find the monopolist’s profit maximizing/loss minimizing quantity and price.
b. Find the monopolist’s profit or loss based on part (a).
c. Based on the information in part (a), what is the elasticity of demand?
d. Given all of the information, explain whether this could be a long run outcome for a monopolist.

 

 

 

 

 

 

 

 

 

Sample Solution

 

Imaginative Work Behavior frames a urgent hotspot for increasing upper hand and its improvement gives a prevailing test which is looked by a few associations. In this paper positive job of Ethical Leadership (at individual and aggregate levels) is proposed to emphatically affect Innovative work Behavior by utilizing the hypothesis of deteriorated arranged conduct. We contend that Ethical Leadership with its attention on Fairness , Power sharing, Role Clarification, People Orientation, Integrity, Ethical Guidance and Concern for manageability decidedly fortifies a person’s sure activity frames of mind, emotional standards and saw conduct controls by influencing the basic social, standardizing and control convictions. In proposing a comprehensive and staggered system connecting EL (at individual and aggregate levels) with Innovative Work Behavior, this paper adds to both, Positive mentalities and EL written works. Other than that the segments of Ethical Leadership are featured, likewise an examination of it with other authority style has been made. The significance of such an article comes when moral practices or scarcity in that department is by all accounts progressively common in numerous associations’ execution and hampering development of advancement. Toward the end we have talked about the hypothetical and commonsense ramifications of the proposed model.

Catchphrases: Decomposed hypothesis of arranged conduct, Ethical authority, Innovative work conduct.

Presentation

“Morals is at the core of administration” (Ciulla, 2004, p. 8), in this way heads without morals may add to corporate breakdown with inescapable and unfortunate social outcomes.

Later past gives plenty of instances of untrustworthy practices completed by different firms. There has been an expansion in the significance joined to corporate social duties and business morals because of which pioneers are like never before required to act morally. Subsequently, moral initiative has become a territory of enthusiasm for the two academicians and professionals in the previous decade. One inquiry that is oftentimes posed by administrators, representatives, understudies, and the overall population everywhere is that what effect does authority have on the conduct of the devotees?

In the current writing a colossal number of researchers have hypothetically and exactly explored its effect on representatives’ work demeanors and conduct and set up that moral authority was a solid indicator of employment fulfillment, Organization responsibility, imaginative work conduct, and authoritative citizenship conduct (Brown et al. 2005, Brown and Trevin˜o2006) anyway the relationship of moral administration on representative results still stays unexplored. Moral initiative as an alternate administration develop has been exhibited already (Brown et al., 2005), however till date just not many exact examinations have investigated the connection between moral authority and positive employment results, the build being moderately new. Given that exact examination on moral administration is still in its incipient stage, various critical inquiries stay unanswered. This examination centers around – What are the segments of Ethical Leadership and how can it identify with significant representative practices? Dark colored and Treviño (2006b) set forward it as a lane of future research. Considering the abovementioned, the principle reason for this examination is to reveal insight into the build of moral authority by exploring the important writing, and set forward how it identifies with positive occupation results, for example, Innovative Work Behavior and Job Involvement.

In this paper the emphasis is on the supernatural angles influencing IWB by proposing a linkage between Ethical Leadership (at individual and authoritative levels) and expectations to enhance. The article is sorted out as pursues The primary area manages the conspicuous writing on EL and IWB featuring parts of EL and separating it with different types of initiative. The following area outlines the Decomposed Theory of Planned Behavior as the premise to examine the connection among EL and goals to develop. Later on, a theoretical structure alongside a lot of recommendations is laid out. The end segment introduces a synopsis of the key contentions, commitments and an exchange of potential ways forward.

RESEARCH GAPS

Specifically, this examination inspects two research holes: the principal hole is that Ethical initiative as a potential indicator has gotten almost no consideration; there is have to feature its parts, second next to no accentuation has been put on analyzing the relationship of Ethical administration on Innovative work conduct. To this end, we may require a coordinated methodology, wherein both Ethical administration and Innovative work conduct are a piece of. This investigation tries to connect these holes by proposing a model, utilizing the hypothesis of decayed of disintegrated arranged conduct where both Ethical initiative and inventive work conduct are considered.

Goals

The goals of the paper incorporate giving parts of the develop of Ethical Leadership,

Second goal is to portray a moral chief’s character likewise separating it from different types of administration.

Moreover objective is to propose a model exhibiting the positive job of Ethical Leadership (at individual and aggregate levels) on aim to improve by utilizing the hypothesis of decayed arranged conduct

Writing REVIEW

Moral Leadership

Administration can be characterized as a craft of convincing a supporter to need to do the things, exercises, according to the objectives set by the pioneer. The job of pioneers is along these lines during the time spent coordinating the person’s conduct towards an ideal objective. Pioneers vary dependent on the individual authority style that creates from person’s character qualities. The writing demonstrates that individual characteristics, for example, honesty would be critical to impression of authority adequacy. For example study inquire about has related seen pioneer adequacy with discernments in regards to the pioneer’s genuineness, respectability, and reliability (Posner and Schmidt, 1992, Kouzes and Posner, 1993, Den Hartog et al., 1999). Otherworldly qualities and practices identified with authority adequacy. The Leadership Cognitive trust has been connected with compelling methodologies of initiative also (Dirks and Ferrin, 2002). Expanding on this, Treviño et al. (2003) did an exploratory research planned to perceive what the term moral initiative intends to quick eyewitnesses of officials. Over the span of organized meetings with twenty senior administrators and twenty consistence officials in a various businesses, the analysts got some information about a moral chief to whom they were outstanding, and answer the wide addresses identified with the qualities, practices, and thought processes of that pioneer.

Driving morally is tied in with enquiring and posing inquiries about what is correct and what’s up, building up a method of direct and setting the model for supporters and others about the rightness or misleading quality of specific activities. Moral authority as depicted by Brown et al. (2005) varies from different types of administration such, for example, transformational (Burns, 1978), bona fide (Luthans and Avolio 2003), and otherworldly (Fry, 2003) authority. Definitely these types of authority comprise of characteristics, for example, reasonableness, honesty, dependability, worry for others and so on. Be that as it may, these characteristics delineate just a piece of moral initiative. A second noteworthy component of moral initiative, named by Treviño et al. as the ethical supervisor, feature more on the value-based endeavors to impact adherent’s moral conduct. Darker et al. (2005) displayed another conceptualization of moral initiative and distinguished three significant structure squares of moral authority. The structure squares are-1.Being a case of ethicality. 2. Treating individuals with reasonableness and 3. Overseeing ethical quality. The initial two structure squares are uncovered in being the ethical individual part of moral administration in which moral pioneers have lucky characteristics, for example, being reasonable and reliable. The last building square manages the ethical administrator segment in which moral pioneers bolster standardizing conduct and put off unscrupulous conduct with respect to their subordinates (Brown and Treviño 2006a).

Moral administration is likewise expected to affect subordinates over the span of social trade forms (Blau, 1964). Social trade remains on the standard of correspondence (Gouldner, 1960), which expresses that on the off chance that one trade accomplice accomplishes something advantageous for the other, that produces a duty to give consequently great confidence conduct. Moral administration varies from different types of initiative .One way it separates from other authority styles is that while a few hypotheses of initiative, for example, transformational initiative contain a moral part the emphasis on morals is backup and signifies just a single part of the initiative style. In difference, moral authority centers exclusively and unequivocally around the moral part of initiative. One all the more manner by which moral administration varies from related initiative develops is that it underlines not just the attributes, for example, uprightness, worry for other people, being only and so on of moral pioneers it likewise draws on social learning hypothesis (Bandura, 1977, 1986) which expresses that individuals gain from displaying the conduct of alluring good examples.

Measurements/Components of Ethical Leadership

Writing survey of the moral initiative writing proposes that there are a few social elements of moral administration in associations. For considering measurements we have expand on work by Brown and Treviño just as others as hypothetical bases for separating these practices. Three elements of moral authority (i.e., decency, control sharing, and job explanation) were distingui

 

 

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