California National University Market Economy and Regression Equation Questions

1. Discuss the typical risks faced by a firm.
2. In a market economy, the price system facilitates allocation of resources. Discuss how a manager may contribute to the profit maximization goal of a firm by studying managerial economics.
3. Price elasticity of demand is an important tool for managers in in a selling environment in deciding what to put on sale. Assume you are the District Manager of a grocery chain which sells everything like Ralphs or Albertsons. What will you put on sale in your district during the Valentine’s Day week? You must provide your reasons.
4. As a Manager, your goal is to maximize profit of your business. Assume you are in charge of managing your company’s costs – you are the Controller of Accounts and all purchases must be approved by you. With appropriate examples, illustrate how you and your Division will contribute to maximizing profit of your business.
5. Perfect Competition is a model of which examples are few and far between. Yet economists love to discuss this model. Explain why.
6. One of the criticisms of oligopolies is the adverse impacts these firms have on income distribution. Do you believe that is a valid critism? Discuss with appropriate examples.

Briefly explain the main purpose of the following antitrust laws: Sherman Act, Clayton Act, Federal Trade Commission Act, Robinson-Patman Act, Celler-Kefauver Act and Hart-Scott-Rodino Act.?

Briefly explain with your own real examples the two types of externalities?

Explain Price Ceiling with an example?

Explain Quantity Restrictions with an example?

What is the difference between a simple regression equation and a multiple regression equation?

What is forecasting and what would a firm need to forecast?