Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
9th Edition
ISBN: 9781259290619
Author: Michael Baye, Jeff Prince
Publisher: McGraw-Hill Education
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Chapter 4, Problem 16PAA
To determine
To evaluate if new proposal designed to cut costs is viable and good for the company.
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Cigarland is a Latin American country producing cigars. If the unit cost is 11 dollars and firms' mark up
is 20 per cent, calculate the price of each cigar.
Answer the question by providing just the appropriate number of dollars in the box below to one decimal
place (eg 12.3). Do not enter a comma, space, letters, words or symbols (such as $). Failure to follow
these instructions may result in your answer being marked as incorrect.
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What is task definition (as a situational variable)?Give an example of how it can influence theconsumption process.
The state of New Jersey has in circulation (as of 2011) an instant lottery game called $1,000
Downpour. The cost of each ticket for this lottery game is $5.00. A player can instantly win $75,000,
$1,000, $100, $50, $20, $10, or $5. Each ticket has 19 spots covered by latex coating, and the top
four spots contain numbers that, if matched by the player's numbers, win money. The remaining 15
spots belong to the player. A player wins if any of the numbers in the player's 15 spots matches any
of the four winning numbers.
Number of tickets that can
win
Prizes
0 (i.e. not a winner)
2,853,533
621,075
10
327,600
20
58,500
50
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5525
1,000
2561
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6.
Total= 3,900,000 tickets sold
Find and interpret the expected outcome of this game.
[Write your answer as a complete sentence]
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Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
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