A sports facility with a budget of $240 faces prices of $6 per basketball and $5...
A sports facility with a budget of $240 faces prices of $6 per basketball and $5 per volleyball. In equilibrium, the sports facility purchases 8 basketballs and 16 volleyballs. Suppose the sports facility can join a sports equipment buyer’s club. For a $60 fee, they can purchase at the lower prices of $3 per basketball and $4 per volleyball.
a) draw the budget constraint for the sports facility in the buyers’ club.
b) Can they buy the same combination of goods purchased previously ($8 & $16)? Explain.
c ) Should the sports facility join the buyers’ club?
d ) Will the consumer’s optimal (utility-maximizing) combination of basketballs and volleyballs change? Why or why not?
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A sports facility with a budget of $240 faces prices of $6 per basketball and $5...
A sports facility with a budget of $240 faces prices of $6 per basketball and $5...
A sports facility with a budget of $240 faces prices of $6 per basketball and $5 per volleyball. 1) Draw the budget constraint. 2) In equilibrium, the sports facility purchases 8 basketballs and 16 volleyballs. Graph this Equilibrium assuming the standard shape for indifference curves. Suppose the sports facility can join a sports equipment buyer’s club. For a $60 fee, they can purchase at the lower prices of $3 per basketball and $4 per volleyball. 3) On the same graph,...
Question 1: Louis the retired Canadian lives on a fixed budget and consumes only two goods:...
Question 1: Louis the retired Canadian lives on a fixed budget and consumes only two goods: toques (T) and maple syrup (M). Suppose Louis monthly budget is 100 and the price of the two goods are (PT,PM) (4,2). (a) Make a properly labeled diagram illustrating Louis'budget constraint with T on the hori- zontal axis and M on the vertical axis. Indicate the area corresponding to the set of bundles (M, T) that Louis can afford. (b) What is the maximum...
2. Consider the following four consumers (C1,C2,C3,C4) with the following utility functions: Consumer Utility Function C1...
2. Consider the following four consumers (C1,C2,C3,C4) with the following utility functions: Consumer Utility Function C1 u(x,y) = 2x+2y C2 u(x,y) = x^3/4y^1/4 C3 u(x,y) = min(x,y) C4 u(x,y) = min(4x,3y) On the appropriate graph, draw each consumer’s indifference curves through the following points: (2,2), (4,4), (6,6) and (8,8), AND label the utility level of each curve. Hint: Each grid should have 4 curves on it representing the same preferences but with different utility levels. 3. In the following parts,...
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This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects. Bombardier and Its Environment Joseph-Armand Bombardier was 15 years old when he built his first snowmobile...
Question 1: Louis the retired Canadian lives on a fixed budget and consumes only two goods: toques (T) and maple syrup (M). Suppose Louis monthly budget is 100 and the price of the two goods are (PT,PM) (4,2). (a) Make a properly labeled diagram illustrating Louis'budget constraint with T on the hori- zontal axis and M on the vertical axis. Indicate the area corresponding to the set of bundles (M, T) that Louis can afford. (b) What is the maximum...
SYNOPSIS The product manager for coffee development at Kraft Canada must decide whether to introduce the company's new line of single-serve coffee pods or to await results from the product's launch in the United States. Key strategic decisions include choosing the target market to focus on and determining the value proposition to emphasize. Important questions are also raised in regard to how the new product should be branded, the flavors to offer, whether Kraft should use traditional distribution channels or...
How can we assess whether a project is a success or a
failure?
This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects. Bombardier and Its Environment Joseph-Armand Bombardier was 15 years old when he built his first snowmobile...
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