Economics

4. When talking about economics profits in a perfectly competitive market, the difference between the

3. Do you expect this profit level to continue in subsequent years? Why or why not?

13. Sunglass Hut purchases a pair of Tiffany sunglasses from a wholesaler for $180 and sells it for $300. If the wholesaler increases its price by 20%, to the nearest dollar, what should Sunglass Hut charge in order to maintain the same percent margin?

Industries often have an established company that is a price leader. When competitors “meet” the leader’s price, the competitor is pursuing a ______?_____ strategy? B

West Company can produce 1,500 units at an average total cost of $2.50 or 1,800 units at an average total cost of $2.55. Economies of scale, cost per unit is lower

3.How these strategies are related the performance of these companies over time? Why? What is going on in terms of industry competition and markets that makes one strategy outperform the other at any point in time?

1. If a coffee company purchases paper cups at a cost of x cents for a package of ten and lids at a cost of y cents per dozen, which of the following represents its material cost, in cents, of c cups of coffee?

8. Compared to a perfectly competitive industry with the same demand and cost curves, a monopoly’s price and output will be which of the following?

3. Describe the competitive strategies used by each of Williams-Sonoma’s competitors. Which of these are most effective?

Suppose there are 100 consumers with identical individual demand curves. When the price of a movie ticket is $8, the quantity demanded for each person is 5. When the price is $4, the quantity demanded for each person is 9. Assuming the law of demand holds, which of the following choices is the most likely quantity demanded in the market when the price is $6? Explain and show calculations,

2. What do the results say about how firms in this industry can deliver strong financial returns in different ways?

(Refer to original data.) Fuel cost is a significant variable cost to any railway. If crude oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will rise to $ 90. What will be the new break-even point in passengers and in number of passenger train cars? Then, proceed to compute number of passengers =?

5. The following table shows the quantities of ice cream cones that will be demanded and supplied at various prices.

The company under analysis in this report is Dunkin Donuts. The brand of Dunkin Donuts originated in 1950 when Bill Rosenberg opened the very first outlet in Massachusetts, USA. Today Dunkin' Donuts is the world's leading baked goods and coffee chain, serving more than 3 million customers per day worldwide. It sells about 52 varieties of donuts and more than a dozen coffee beverages as well as an array of bagels, breakfast, sandwiches, subs and other baked goods. Dunkin Donuts is a subsidiary company of Dunkin Brands Inc that owns companies like Dunkin Donuts, Baskin Robins etc. Dunkin Donuts is a multinational company with its presence in more than 32 nations. By the end of 2011, there were 10,083 Dunkin' Donuts stores worldwide that included 7,015 franchised restaurants in the United States of America and 3,068 international outlets in more than 32 countries across the globe employing more than 9000 people. According to the financial report published by Dunkin Brands Inc, the parent company of Dunkin Donuts the net sales worldwide totaled up to $8.77 billion, up 5.2 percent from the previous year and the Net income for the year was $108.3 million, up 214.5 percent as reported by the company.

6. Which of the two companies do you think has better long- terms prospects for success in India?