The 2008 sales and profits of seven companies were given as follows Firm Sales ($ Billions) Profit ($ Billions) Fiat 5.7 0.27 Honda 6.7 0.12 BP 0.2 0.01 Toyota 0.6 0.04 Apple 3.8 0.05 IBM 12.5 0.46 Phillips 0.5 0.02 The estimated value for the company’s Profit can be estimated using the equation; Y ̂i = α ̂ + β ̂Xi…………………………………………
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The 2008 sales and profits of seven companies were given as follows Firm Sales ($ Billions) Profit ($ Billions) Fiat 5.7 0.27 Honda 6.7 0.12 BP 0.2 0.01 Toyota 0.6 0.04 Apple 3.8 0.05 IBM 12.5 0.46 Phillips 0.5 0.02 The estimated value for the company’s Profit can be estimated using the equation; Y ̂i = α ̂ + β ̂Xi……………………………………………………………………Eqn.1 Where; Y = Companies Profit X = Companies Sales α ̂ and β ̂ are estimated parameters in the model Calculate the sample regression line, where profit is the dependent variable (Y) and sales is the independent variable (X)
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- 9- Following table presents the quarterly market share of Tasty Food Company; Quarter Firm's Actual Market Share 1 20 22 3 23 4 24 5 18 23 7 19 8 17 22 10 23 11 18 12 23 13 ? a) Forecast the company's market share for the 13th quarter by exponential smoothing with w=0.3. b) Calculate the Root-Mean Square Error (RMSE) for the exponential forecast using w=0.3. c) If the RMSE for the exponential forecast using w=0.5 is 2.91 then compare which forecasts is better and why?In a certain region, there are four major healthcare providers: A HealthCare, B CarePlus, C MedWell, and D LifeCare. The market shares of these providers in terms of patient visits are as follows: A HealthCare: 35% B CarePlus: 25% C MedWell: 20% D LifeCare: 20% Calculate the Herfindahl-Hirschman Index (HHI) for the healthcare provider market in this region. Is this market considered concentrated or competitive according to the HHI interpretation?Two competing companies, A and B face the same unit cost of a product that is fixed and equal to 15 monetary units. The demand function for company A's product is Pa=65-2.5Qa and for B's product is Pb=60-2Qb.Calculate the Lerner index at the equilibrium position of each company. Comparing the index you found for company A with the index you found for company B what is found? If there is a difference between them, explain why it is due.
- R(x)= -0.956x^2 + 157x C(x)= 50.8x + 73.4 P(x)= R(x) - C(x) P(x)= -0.956x^2 + 106.2x - 73.4 What are the break-even points? What is the profit at the break-even points? What number of widgets sold will yield positive profit? Determine the number of widgets that you should try to sell in order to maximize profit. What is the maximum profit?The table below shows recent worldwide market shares of producers of inkjet printers: Firm Brother Canon Dell Share of Worldwide Market Sales 4% 16 5 19 41 13 Epson Hewlett-Packard Lexmark Samsung Other 1 The value of the Herfindahl-Hirschman index for the industry is. (Enter your response as a whole number.)ADJ Enterprises produces hydrothermocorticoids. Consider the following facts about ADJ and the hydrothermocorticoid market: For each of the past three years, ADJ has earned the following profits: a Net Profit Margin of 6% and a Return on Investment of 11%. (Net Profit Margin and Return on Investment are two common measures of the profitability of a business; the exact details of Net Profit Margin and Return on Investment are not important for this question – in other words, you don’t have to know anything about Net Profit Margin and Return on Investment in order to answer this question successfully.) For the past three years, other hydrothermocorticoid producers have also earned profits of a Net Profit Margin of 6% and a Return on Investment of 11%. Producers in other industries with resources similar to ADJ have been earning profits for the past three years of: Net Profit Margin of 6% and Return on Investment of 11%. ADJ is currently operating at full capacity; that is, it has all…
- An entrepreneur wants to open a hotel in Puerto Escondido, Oaxaca. Two key variables that should be anticipated to estimate the number of rooms that maximize future profit should be? Total costs and marginal costs Average costs and marginal costs Total income and marginal income Total revenue and total costsFour companies (Firm 1, 2, 3 and 4) are producing a product for the market. Each company will decide the number of products produced. You are given that • . Each firm can choose its qi. Given the quantites produced by four companies (denoted by 91, 92, 93, 94 respectively), the market price of the product is P = 400 - 91-92-93 - 94. Cost of producing one product is 20 (*Note: So the total cost for producing qi units of product is 20qi. Firm 1 and Firm 2 will first decide the quantities produced simultaneously at the beginning. After knowing 91 and 92, Firm 3 and Firm 4 will decide the quantities produced simultaneously. (a) State the strategic profiles of each firm. (b) Find all possible subgame perfect equilibrium for this games. Provide full justification to your answer.Assume you are an engineer working for a chemical production company. You are on the technical team that is responsible for deciding what to do about the dangerous chemical that your company is using to produce its best-selling chemical product. Recent reports have just made known the dangers of this chemical, and the company now needs to decide how to proceed. There are several options to consider: stop producing the harmful product altogether and take a hit on total profits; continue to make the product and sell it, like nothing's wrong, since the federal government has not cracked down. You could also spend money and engineering efforts in R&D to develop a safe chemical that would take its place. There is no guarantee that this would happen any time soon, but the scientists think it is realistically possible. To make matters worse, your biggest competitor produces this harmful product off-shore and is not hampered by the US regulations. If you stop producing this product…
- You have been hired as a business analyst for Seko, an information technology company. The manager of Seko estimates that the annual profit of the company, in millions of dollars, is given by P(x)=2 ln(2x+1)+2x-²-0.3 where z is the number of IT consultants (in hundreds) in its employ. 2 Instructions Your responsibilities under this company are: 1. To find the number of consultants the firm should hire so that its profit is maximized. 2. To find the maximum profit.Olympus has integrated many components into its SLR camera. Recently, Olympus has introduced a smartphone app, Olympus Image Share (OI.Share) to pair with its camera. It says: "Paired with a compatible Olympus camera, the Olympus Image Share (OI.Share) smartphone app makes photography more enjoyable than ever. With this app, you can release the shutter remotely, then easily import photos from the camera to your smartphone and share your most inspiring moments with friends and family". a. How might this news be an example of non-price competition for an oligopolistic firm? Discuss.Most corporations exist only under the proper licenses and charter and operate within the limits of safety laws, environmental protection requirements, and other laws and regulations in the government sector. Well-meaning companies sometimes run afoul of stakeholders anyway but can take actions to appease them. Fina, Inc. established an oil refinery in Port Arthur, Texas. Over the years, subdivisions of attractive ranch-style homes grew up in the shadow of the Fina plant. Home owners became unhappy with the plant in their midst because of its noise and odor. How does Fina have to act in a socially responsible way by helping stakeholders?