Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 5, Problem 1.3CE
Logarithms are especially useful for comparing series with two divergent scales since 10 percent growth always looks the same, regardless of the starting level. When absolute levels matter, the raw data are more appropriate, but when growth rates are what’s important, log scales are better.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Assume the carrying capacity of the earth is
9
billion. Use the 1960s peak annual growth rate of
2.1%
and population of
3
billion to predict the base growth rate and current growth rate with a logistic model. Assume a current population of
6.8
billion. How does the predicted growth rate compare to the actual growth rate of about
1.2%
per year?
Assume that a country, in year 5, has a population level, P, of 14 380 individuals. The country's population has
been growing at a constant yearly rate of 2.4%.
a) Find the country's initial population size, assuming that we are dealing with discrete time. Then, determine
the initial population size assuming continuous time. (You must show all your work!) Are the two initial
population sizes similar? Why or why not?
b) Now, assume that g is actually 5% and that the initial population level was, in fact, 10,000. Using the Rule
of 70, graph the population growth on a ratio scale for the time periods, t = 0, 7, 14, and 28. Label your graph.
Please upload your answer as ONE file (document or picture files are acceptable).
You are given the actual sales volume for iPod, what used to be one of Apple’s popular electronic products. The data covers 12 years of sales data, from 2002 until 2014. Your task is to create a product life cycle graph for the iPod as shown on page 295 of the textbook. The product lifecycle is also available in the lecture slides for Chapter 9.
Your life cycle graph should clearly identify the introduction, growth, maturity and declining stages for the iPod. You should show the unit sales in the vertical axis and the calendar years (i.e., time) in the horizontal axis. Once you create the product life cycle graph, answer the following questions:
Finally, explain why the iPod declined. You can use online sources to answer this questions. Again your answer should not be more that one paragraph of three to five sentences.
Chapter 5 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Ch. 5 - The forecasting staff for the Prizer Corporation...Ch. 5 - Prob. 2ECh. 5 - Metropolitan Hospital has estimated its average...Ch. 5 - Prob. 4ECh. 5 - A firm experienced the demand shown in the...Ch. 5 - The economic analysis division of Mapco...Ch. 5 - The Questor Corporation has experienced the...Ch. 5 - Bell Greenhouses has estimated its monthly demand...Ch. 5 - Savings-Mart (a chain of discount department...Ch. 5 - Prob. 1.1CE
Ch. 5 - Plot the logarithm of arrivals for each...Ch. 5 - Logarithms are especially useful for comparing...Ch. 5 - Prob. 1.4CECh. 5 - In attempting to formulate a model of the...Ch. 5 - Estimate the double-log (log linear) time trend...Ch. 5 - Prob. 2.1CECh. 5 - Prob. 3.1CECh. 5 - Prob. 3.2CECh. 5 - Prob. 3.3CE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- You are given the actual sales volume for iPod, what used to be one of Apple’s popular electronic products. The data covers 12 years of sales data, from 2002 until 2014. Your task is to create a product life cycle graph for the iPod as shown on page 295 of the textbook. The product lifecycle is also available in the lecture slides for Chapter 9. Your life cycle graph should clearly identify the introduction, growth, maturity and declining stages for the iPod. You should show the unit sales in the vertical axis and the calendar years (i.e., time) in the horizontal axis. Once you create the product life cycle graph, answer the following questions: In which years did the maturity stage occurred for the iPod? Explain your reasons in one paragraph of three to five sentences long. In which years did the decline stage occurred for the iPod? Explain your reasons in one paragraph of three to five sentences long.arrow_forwardThe fox population in a certain region has a continuous growth rate of 9 percent per year. It is estimated that the population in the year 2000 was 29100. (a) Find a function that models the population t years after 2000 (t = 0 for 2000). Hint: Use an exponential function with base e. Your answer is P(t) = Preview (b) Use the function from part (a) to estimate the fox population in the year 2008. Your answer is (the answer must be an integer) Preview Get help: Video MacBook Pro G Search or type URL #3 & 2 3 4 5 6 7 8 9 delet Q W E Y A D H J K C V N M. %3D .. ..arrow_forwardUse a growth rate of 1.3% to predict the population in 2042 of a country that in the year 2006 had a population of 400 million. Use the approximate doubling time formula.arrow_forward
- onsider an imaginary economy that has been growing at a rate of 3% per year. Government economists have proposed a number of policies to increase the growth rate but first need to convince the president that the policies will pay off. To do so, they want to present a comparison of the number of years it will take for the economy to double, depending on the growth rate. Using the rule of 70, determine the number of years it will take the economy to double at each growth rate. Growth Rate Years Required to Double (Percent) (Nearest whole number of years) 3 4 5arrow_forwardIndia’s GDP per capita increased from $310 in 1991 to $1,489 in 2012. (i) Calculate the average annual rate of growth of the Indian economy during this period using the arithmetic average. (ii) Calculate the geometric average annual growth rate of India during this period. Explain why the number you find in (ii) differs from the result obtained in (i).arrow_forwardIn the year 2000, the total amount of consumer loans in the United States topped $550 billion dollars. According to the Archival Federal Reserve Economic Data report, the total amount of consumer loans for the United States can be approximated by the function L(t) = 0.286t²-3.669t+24.475 where t is the number of years after 1950 and L(t) is given in billions of dollars. Evaluate and interpret the instantaneous rate of change in the total amount of consumer loans in the United States in 2020. O a. The total amount of consumer loans in the United States is expected to grow in 2020 at a rate of 11.69 billion dollars. Ob. The total amount of consumer loans in the United States is expected to grow in 2020 at a rate of 30.65 billion dollars. Oc. The total amount of consumer loans in the United States is expected to grow in 2020 at a rate of 34.32 billion dollars. Od. The total amount of consumer loans in the United States is expected to grow in 2020 at a rate of 36.37 billion dollars.arrow_forward
- How large will Canada’s GDP be in 25 years? The answer depends on what the rate of growth in GDP will be over that 25-year period. A mathematical formula we can use for this calculation is the following: GDP2041 = GDP2016 (1 + g)25 where GDP2041 is the level of GDP in the year 2041, GDP2016 is the level of GDP in the year 2016, and g is the rate of growth in GDP. Assume that GDP in 2016 is $1000 million and assume that the value of g is 0.035 (3.5 percent per year). What will be the value of GDP in 2041? Now suppose that the value of g is 0.040 (4.0 percent per year). What will be the value of GDP in 2041 given this slightly larger rate of growth? What does this result say about the importance of policies that promote even slightly faster rates of growth in GDP?arrow_forwardFor the following questions, you will need the following formula: let Xo be the initial value, X, be the value after t periods and g be the growth rate by period, then Xt = X₁ (1 + g)t. You may also need the log properties: log(a³) = blog(a) and log(ab) = log(a) + log(b). The properties imply: log(X) = log(X₁) + tlog(1+g). a. Suppose the initial real per capita GDP for countries A and B is 15 thousand dollars. If the annual growth rates of countries A and B are respectively 3.6% and 5.6%, what is the the ratio XB/XA after 39 years? Round your answer to the nearest first decimal. Number b. Suppose the annual growth rates of countries A and B are respectively 3.6% and 5.6%. How many years it will take for each country to double their respective real per capita GDP? Round your answer to the nearest first decimal. Country A: Number Country B: Number c. Suppose the initial real per capita GDP of countries A, B and C are respectively 10, 10 and 50 thousand dollars. If their annual growth…arrow_forwardThe economy of Zambia evolves according to the equations of the Solow model. It has an investment rate of 0.5, a depreciation rate of 0.3, and the production function Y = AVK where A=9. Assume the capital stock in Year O is Ko = : 25. Project capital, GDP, investment, and depreciation for Years t=0,1,2,...,10 and graph a time plot of all four variables. Be sure to Graph the time path of investment, depreciation, and production functions with time (year) on the horizontal axis Graph all four on a single set of axes Make sure the legend of the graph makes it clear which variable is being graphed Label all axes You must draw your graph in Google Sheets, export it as a png file, and upload it in the upload question below.arrow_forward
- Explain with the use of practical examples how time series analysis can be used in modern-day research to develop models which would contribute to improving the livelihoods of people especially in developing and poor countries.arrow_forwardThe following is a plot of US labor productivity. The scale is calibrated soproductivity = 100 in 2012.In 2020, productivity is estimated at 113. In 1990 it was 60.What was the growth rate of productivity from 1990 to 2020? (report the percentage rate with one decimal)arrow_forwardQuestion: The following data show the population of Turkey in the selected years between 1990 and 2020: Year 1990 1995 2000 2005 2010 2015 61 68 ? 74.1 79.1 Population (millions) 57 2020 84.1 (a) Calculate the rate of growth of the population in millions per year in the year 2020 with an error level of O(h²).arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Forecasting: Exponential Smoothing, MSE; Author: Joshua Emmanuel;https://www.youtube.com/watch?v=k_HN0wOKDd0;License: Standard Youtube License