Microeconomics Apple company

 
Assignment Guideline
Essay

Topic of the essay
Working title: “Studying Supply and Demand in Mobile Phone Industry”

The research must focus on:

1. Linking the Law of Supply and Demand with the case study of mobile phone production industry
2. Provide a thorough analysis of the depth and breadth of the market globally
3. Identify and analyse factors affecting supply and demand in the context of the case study
4. Factors affecting the change of prices in the context of the case study
5. Factors affecting the labour market in the context of the case study

*********The topic will be on Apple the company, please mention the case on suicide and how it is cheaper to hire people rather than hiring robots to do the job. Also that it is so sad to see people committing suicide in the factory because they are being paid very cheap on an item that they are making which is making billions and billions for the company*******
The students are required to go beyond the teaching material and explore the topic through the theory as well as the case study.
Length of the assignment
2000 words
Using you’re the global mobile phone industry as a case study, answer one of the following questions:
1- Discuss supply and demand and how they affect fluctuating prices in the market, and discuss how fluctuating markets affect individuals.

2- Talk about how the labor market affects supply and demand, and the price of manufactured items.
The indicative length for the essay is exclusive of title, footnotes (MUST USE FOOTNOTES), bibliography, references, and appendices. The deadline for electronic submission on the BB is the 22nd of November and a hard copy MUST be submitted on the following lecture – proof of submission as well as a copy of the answer should be kept. Students will be graded upon the analytical
Structure of the assignment

Any academic piece of writing must have a clear structure. The required formatting for this course is as it follows:

I. Introduction (introduction of the topic, and the rational for choosing the topic)
II. Literature review
III. Analysis (it is recommended to have relevant sub-headings for this section)
IV. Conclusion (it is required to have a clear, strong and punchy conclusion)
V. Bibliography

Any student who so wishes may submit an outline of his or her paper for feedback purposes only.

Sources used for the essay
AT LEAST half of the sources used for the essay must be academic sources. An academic source is either a book, or an academic journal article.
Sources can be repeated but ten out twenty must be used
Given the length of this research project, the students are expected to have used and cited minimum 20 sources out of which at least 10 sources MUST be academic literature. The only accepted style of citation is Chicago style in footnotes (please see https://www.chicagomanualofstyle.org/tools_citationguide.html )

The papers MUST contain a bibliography and you must have a minimum of three source materials for every page of text (roughly about one source for every 100 words of text).
An essay without citation is a fail.

Academic dishonesty
Plagiarism is a very serious offence within the academic community, and will not be tolerated under any circumstances in this class. Using crib notes during exams or copying material from other sources, students, periodicals books, etc. – without proper acknowledgment is cheating. Any form of cheating will result in an F for the course and further disciplinary action. If you have any question about what constitutes academic dishonesty, please speak to your tutor.
The Core Marking Criteria for the assignment

1. The depth of introduction of the case study
2. The successful application of the theory to case study
3. Use of academic sources
4. Analysis
5. Conclusion
6. Citation and bibliography

Real Estate Economics

An individual essay, guideline word count 2,500 to 3,000 (excluding footnotes and list of references).
To be submitted in Moodle in a Word or pdf file.
Formatting: your document will have page numbers, headings for the main sections / sub-sections, the normal top / bottom / left / right margins, at least 11pt font size, and 1.5 or 2 x line spacing.
Referencing: all references must be in Harvard format .
Structure: you should have at least one paragraph of general introduction which states how have you have interpreted and approached the question, and sets out the structure of the essay, and at least one final paragraph of summary / conclusions.
Assessment: marks will reflect understanding of the core material from the lectures and required reading, plus evidence of wider research, ability to apply concepts taught in the course to specific questions and to illustrate them with real world examples, clarity of written style and quality of presentation.

Question:
Draw on modern theories of rent and urban economics to analyse and explain the patterns in office rents shown in the data sources below.
• Colliers UK Office Rent Map plus Central London data. (Note the latter is given only for the rental figures, you do not have to use the take-up etc data.)
• REE Coursework Town Data.xls which has figureson city sizes, rateable values and floorspace.

The original Colliers documents are in Moodle. There is a (not terribly helpful) interactive version of the map at http://www.colliers.com/en-gb/uk/insights/offices-rents-map.
Beyond the information provided, you might also like to look at the distances and travel times between locations which can be easily found from Google maps etc. And you can use any other relevant sources of data you choose.

Pointers:
There is no one “required” answer to this question. It covers several different “patterns” – rents within urban cores, within city regions, across major cities or different types of city. Your answer should touch on all of them, but might concentrate on one or two of them.
You are expected to use the data provided, though you don’t have to use all of it. Note that the question asks for an analysis. This means more than an essay with a few numbers dropped here and there in the text: you are expected to construct your own charts, tables to demonstrate your points.
It would be possible to answer the question with a lot of statistics and modelling. But a statistical approach is not required: do it that way if you are comfortable with statistics, if you are not you need more than clear charts and tables, perhaps extending to a bit of correlation.
A good answer to the question will demonstrate that you understand the relevant theories (note the “modern theories” – it does not need a large chunk of Ricardo, von Thunen etc to get started), and then test how far they are supported by the data. So you could structure the essay as a section on the relevant theoryfollowed by a separate section for patterns in the data. Or you could have a section for each pattern putting the theory and data together. Either way is OK.
You will need to understand a bit of UK geography. The country is divided into a set of “standard regions” as shown on the regional map at the end. These are not the economic “city regions” – a dominant central city with surrounding commuter zones and satellites – we discuss in the course. In Scotland, for example, Glasgow and Edinburgh are two separate major cities quite close together, with only minor centres in the rest of the country. Manchester and Leeds may look close enough to be part of the same “regional” system, but in fact the North West is divided from Yorkshire and Humberside by the Pennine mountain range. (Alright,they’re hills but you don’t want to be up there in a February blizzard.)
For office market analysis, the country is usually divided into a set of dominant cities each with a surrounding region running out 20-40 miles. They are London plus the major provincial cities Bristol, Birmingham, Manchester, Leeds, Glasgow, Edinburgh (the “Big Six”), to which some would add Sheffield, Newcastle, Cardiff, Liverpool. Note this leaves some areas – the East Midlands, East Anglia – without a dominant central city, and instead several cities of roughly equal size.You could use either or both of the Primary Urban Areas or Metropolitan County Areas indicated in the spreadsheet to roughly measure city regions.
Finally, please do not say London is the CBD for the whole country, so rents fall with distance from London. It just isn’t, so they don’t.

economics

 
Welcome to the Final Project for this course. In this project, you will use the skills that you have developed throughout the course to answer the questions.
In this project, you take on the role as a member of the Federated Regulated Economic Associated Consultants (FREAC). One of your jobs at this firm is to consult with businesses to help them improve their bottom line.

• Read the Letter below
o Monster Bicycle Manufacturing Company – Click Here to Download
• Using information presented in the course:
o Write a letter in response to Monster Bicycle’s Manufacturing company.
o In the letter, answer the 4 questions posed by MBMC using the information from this course as well as the information provided by MBMC in their letter
o As part of your response, you will need to include graphs displaying your information – these graphs can be done by hand, just remember to make them neat and legible

Financial Economics

 
The coursework should be presented in the form of a brief written report. The report should:
1)show understanding of the tasks undertaken
2) focus on the interpretation of obtained results
3)contain the source codes of the numerical software(excel, matlab) used to make computations in each step.

There will be 5 steps (problems). First step is Risk Premium. Second step is Interest rate compounding ( calculate annual compounding, continuos compounding and simple compounding). Third step is Bonds and the Yield Curve. Forth step is CDS basis (calculate time series). Fifth step is Nelson-Siegel. I will send full instructions given by teacher.

Economics

 
The Microeconomic Paper tests your ability to apply economic principles to a business decision. Select one situation from the items outlined below: A to D. Complete the paper on the selected situation as specified below. The completed paper is a professional report and is due in Week 3 (150 points). See the grading rubric at the end of this document. Be sure to use the DeVry library for finding data; avoid questionable sources, such as Wikipedia.

The following is a list of the specific required information, research, graphs, and math to be included in each answer regardless of the scenario chosen.

1. Demand Determinants:
a. Each individual determinant analyzed for your situation, with examples applicable to your situation (2 points each) and research (1 point each) showing current demand data or most recent past data, except for the expectations determinant in which you need to use data estimating future market conditions.
b. (10 points) Price Elasticity of Demand facing you in your scenario, including actual calculation of it using the midpoint formula. If you can’t find data, then determine the price elasticity from the characteristics and make up numbers to use. Be sure to identify this if you use this approach. This will help you in deciding the slope of your demand curve below.
c. (5 points) Graph the demand facing your situation. Note that this requires information from the supply determinant analysis before deciding how to draw the curve(s), as you may need a separate MR curve.
2. Supply Determinants:
a. Each individual determinant analyzed for your situation, with examples applicable to your situation (2 points each) and research (1 point each) showing current supply data or most recent past data, except for the expectations determinant in which you need to use data estimating future market conditions.
i. (20 points) You need to be very specific in the cost of production determinant to identify fixed, variable, and marginal cost in order to derive your supply curve for the graphing component. You will need to explain and show how profit maximization or loss minimization output and price are determined. You will need to do the math using actual figures [cited] or your own estimated figures [identified as such] and explain why you expect short run economic or normal profits, acceptable loss or temporary shutdown, and how you will know which it is.
ii. The number of sellers determinant must contain your analysis of the kind of market structure in which your firm or labor service will be sold.
b. (10 points) Price Elasticity of Supply you have based on the cost of production changes as output changes, including actual calculation of it using the midpoint formula. If you can’t find data, then determine the price elasticity from the characteristics and make up numbers to use. Be sure to identify this if you use this approach. This will help you in deciding the slope of your supply curve.
c. (5 points) Graph your supply situation using the numbers from your earlier cost of production analysis.
3. Recommendations—(40 points) what are your recommendations explained by your analysis?
4. Paper presentation—(10 points) good format, citations, lack of spelling errors, etc.

Situation A

Jenny, your niece, is a smart high-school student who wants to make intelligent choices for her future. Hearing of your course in business economics, she has e-mailed you asking for advice on whether to become a doctor and on the best location to practice it. She recognizes the high costs of tuition and the years of study involved in becoming a doctor. She wants to evaluate if that career choice is an optimal decision for her, so she has asked you for advice.

Grading Rubric

Section Points earned Points Description
Paper Presentation
10 Good format, citations, lack of spelling errors, etc.
Correct Title page and Reference pages
Relevant Data: Demand: 30 points

Supply: 50 points
80
Demand Determinants and Research Data (15 points)
Price Elasticity of Demand (10 points)
Graph of Demand (5 points)

Supply Determinants and Research Data (15 points + Profit Max/Cost of Production Analysis = 20 points for total of 35 points)
Price Elasticity of Supply (10 points)
Supply graph (5 points)
Recommendations 40
What are your recommendations explained by your analysis?
Total 130 A quality paper meets or exceeds these requirements

You decide to educate yourself about the market for physicians in terms of supply and demand, elasticity, costs of production, pricing, and economic or normal profit or loss. You want to provide Jenny with the most informed advice possible.

anything connected with Business Economics or Marketing…

 
Undergraduate Major Project

The chosen topic will require you to:

• Identify/formulate problems and issues
• Conduct literature reviews
• Evaluate secondary information
• Investigate and adopt suitable methodologies
• Determine solutions
• Process secondary data
• Critically appraise and present findings using appropriate media.

What is required in a dissertation or project?

The learning outcomes indicate that you will be expected to demonstrate some or all of the following:

• Evidence of scholarly research. Examples are using search facilities in the library (CD ROMS, book and journal indices etc.), and showing evidence that sources have been located and sensibly used. Material obtained from sources such as news reports, online discussion forums etc is another possibility.

• Evidence of independent thought. This can be provided by comments on the theories and opinions of scholars, commenting on secondary data etc.

• Interpretation of evidence. Pure description of an event, situation, opinion etc. without explanation or analysis is not sufficient. Similarly; quotations in your dissertation should not be used simply for their own sake. One way of using them is to support a particular viewpoint or argument. You are not rewarded simply for reproducing the words of other writers. If tables are included make sure that you give the source of the data and that you use them (to support an argument, comment on a theory etc.). It cannot be emphasised too strongly that mere description alone is not sufficient – you must analyse, evaluate, or interpret your data and information.

• A conceptual understanding of the topic chosen, using an appropriate theoretical framework. Thus, when choosing a topic, students should remember that a central purpose is to allow the application of appropriate theory.

• Clarity and lucidity of argument and expression in the presentation of your findings. This aspect is very important, but it can present special difficulties for students whose first language is not English. Here we are not looking for perfection in either grammar or sentence construction, but examiners must be able to understand what you are trying to say.

• Competence in the use of bibliographies, footnotes or other referencing, and other appropriate skills. Some guidance on this is presented later.

What is the word limit?

The maximum length of the undergraduate dissertation is typically 10,000 words, or equivalent. There is no minimum length, but you should write enough to demonstrate that you have achieved the aims of your dissertation or project; however, it is unlikely that this can be done in less than 9,000 words.

Note: The maximum number of words does not include footnotes, the abstract, the bibliography, indented quotations, appendices and tables.

What is the required format?

• Your dissertation must be written in English in typescript form on A4 paper. Your name must not appear on the dissertation. You must submit one hard copy of the dissertation to the iCentre and one digital copy through Grademark. Both the hard copy and the digital copy are required (to enable double blind marking by two markers) – if you submit only one of them, it will be considered a non-submission. It is also advisable to retain a copy for your own records. Please note submitted dissertations will only be returned in cases of failure.

• When you submit the copies of your dissertation you may be asked to submit, either on disk, using Word, or in manuscript, your working papers which have formed the basis of your dissertation; for example, copies of articles, working notes and summaries, completed questionnaires and tapes or notes of interviews. These may provide the basis for a viva voce should that be necessary. These will be returned to you after the assessment process is complete.

• The cover sheet of the dissertation must include the following declaration: ‘I declare that the above work is my own and that the material contained herein has not been substantially used in any other submission for an academic award’.

• The dissertation must be prefaced by an abstract. This is not an introduction but a summary which outlines the plan and argument of the dissertation. It should include brief details of the methodology employed. The abstract should not be longer than 300 words. It should be included immediately after the title page and it will be examined as part of the dissertation.

• A list of contents, such as the glossary, chapters, and appendices – with page references – should be included at the front of the dissertation.

• Pages should be numbered and double-line spacing used.

• Your dissertation must be held together in a suitable spine binder with a disclaimer page which will be available in Appendix 7 and on your VLE.

• Diagrams, figures, tables, and illustrations should be incorporated into the text at the appropriate place, unless there is a series of them or they are continually referred to throughout the text. In this case they should be placed in appendices at the end of the work. You are advised to use a drawing package for diagrams and scan in other illustrations.

• The work of other authorities must be acknowledged. When quotations or general references are made they must be suitably referenced by using the Harvard system.

• Appendices should not contain material which is not used or referred to in the text. Similarly, illustrative material should not be included unless it is relevant, informative, and referred to in the text.

• A bibliography should be included at the end of the dissertation and should list, alphabetically, all the sources (including magazines and newspapers) that you have consulted. Books should be listed as: Author (surname then initials); date, title, edition, publisher. Other sources such as journals, magazines, and newspapers should be treated in a similar fashion. If sources are used which are not written in English then the English translation is required in the bibliography.
STRUCTURE:

Abstract
Set out on a page of its own immediately after the title page. The abstract is likely to be the last section to be written. It is a short (300 words maximum.) summary of the project (not an introduction) and should indicate the nature and scope of the work, outlining the research problem, key issues, findings and your conclusion/recommendations

Table of Contents
An outline of the whole project in list form, setting out the order of the sections, with page numbers. It is conventional to number the preliminary pages (abstract, table of contents) with lower case Roman numerals (i.e. (i), (ii), (iii) etc.) and the main text pages (starting with the first chapter) in Arabic numerals (1, 2, 3, etc.) as shown below.

Contents Page
List of Tables i
List of Figures ii
List of Abbreviations iii
Acknowledgements iv

Chapter 1 (Title) 1
1.1 (First Section heading)
1.2 (Second etc.)
1.3 (Third)

List of tables and figures
You can present a list at the beginning of your dissertation/ project of the tables and figures you have included.

A table is a presentation of data in tabular form; a figure is a diagrammatic representation of data or other material. Tables and figures should be clearly and consistently numbered, either above or below the table or figure. Each table and figure should have a separate heading (caption). The reader should be able to understand what the table or figure is about from this heading / caption without referring to the text for explanations. The numbers of the tables and the figures you use in the text and in the lists at the beginning should correspond exactly.

Main body of document, appropriately structured (this structure may vary depending on the nature of your dissertation.)

Bibliography / References
Appendices (these should only contain material which is genuinely supportive of the argument in the main body of the dissertation).
Referencing

The use of references can cause difficulties. You must use the Harvard System of Referencing. The essence of this system is that whenever you quote from a primary or secondary source you add in brackets, immediately after the quotation, the surname of the author, the year of publication, and the page reference

Example of Harvard referencing

Carter persisted with the ‘responsible’ import based recovery programme, hoping that the Germans and Japanese would ultimately follow their example. As a consequence of this policy the US trade deficit increased from $9.5 billion in 1976 to $31.1 billion in 1977 (Stein 1998, p159).

(Stein 1998, p159) would appear after a direct quotation, or as in this case, the presentation of an idea. Direct quotes of more than 30 words or so should be indented on either side.
Example:

In my view, and notwithstanding some of the really important theoretical insights and results that the concept has generated, there are problems in trying to apply the concept of utility that have not had the attention they deserve. However, economists are now beginning to take more interest in the extent to which psychological evidence can inform the development of economic models.
(Anand, 2006, p223)

All books etc. you have cited in the text are listed in a reference list at the end of the dissertation in alphabetical order: author, initials, date, title, place of publication, publisher. Stein would thus appear as:

Stein, J (1998) The Locomotive Loses Power: The Trade and Industrial Policies of Jimmy Carter; in Fink, G & Graham, HD (eds) The Carter Presidency: Policy Choices in the Post New-Deal Era, Lawrence, Kansas: University Press of Kansas.

Note that this is a chapter in a publication edited by someone else. The full volume also needs to be cited thus:

Fink, G & Graham, HD (1998) The Carter Presidency: Policy Choices in the Post New-Deal Era, Lawrence, Kansas: University Press of Kansas.

Note the use of italics in these two examples. It is always the title of the book that is italicised.

If there is more than one book, journal article etc. by the same author your references will normally be distinguished by the year of publication. If the author has published more than one work in the same year, show them as 1992a, 1992b etc.

Ensure that your document is spell-checked and pay particular attention to grammatical and punctuation errors.
Good scholarship, referencing and academic misconduct

In your project, as with all academic work, you will be expected to demonstrate a high standard of academic referencing. To recap, this is for three reasons:

1 To show the breadth and depth of research you have carried out (i.e. get good marks!)
2 To enable the reader to follow up on interesting ideas/research that you have discussed.
3 To avoid being accused of plagiarism.

As a level 6 student you should know all of the following information, but experience tells us that it is useful to include a re-cap.

What is good scholarship?
Academics (including you!) are engaged in the generation of new knowledge and insights that contribute to what we already know about the natural, supernatural and social world – this is called ‘scholarship’. Good scholarship is the result of conventions that help the readers of academic research to see exactly what is new, what is the work of others and how it all fits together – the main way this is done is through the referencing system.

Put simply, authors (including you) need to make it clear what are not their own ‘new’ ideas, by adding a citation after every idea or set of ideas they write about that are not their own. There are several different ways of doing this that have evolved from different academic disciplines (just as there are lots of different world languages). In the Business School we use the Harvard Referencing System.

An excellent resource about referencing

We suggest that you select ‘in depth’ mode from the drop-down menu on the bottom left of the page.

What do I reference?
As the above section suggests, you should attribute all your sources regardless of the medium the material comes in (e.g. You Tube video, journal article, blog, radio programme, book chapter etc.) There is a general rule of thumb that says that which is ‘common knowledge’ does not need to be referenced, but of course, what counts as common knowledge? So-called ‘common sense’ hides many assertions and prejudices that good quality academic work should seek to expose. A useful technique to use if you want to include general assertions is to use constructions like:

‘Arguably,’ or ‘It is reasonable to assume…’
But do take care, even assertions need some justification in the text to be credible.

It is also a good idea to completely avoid cutting and pasting text from the internet, even if you correctly enclose a paragraph in quotation marks and add the reference underneath, you are unlikely to get many marks since this is not your own work and does not demonstrate your understanding.

Quotations are good to see, but use them judiciously for the above reasons. If you can say it just as well yourself, write it in your own words and add the citation at the end of the sentence / passage.

You need to include page numbers for all direct quotations.

A useful reference, particularly with regard to referencing new electronic sources is at the following:

https://libweb.anglia.ac.uk/subjects/reference/citation.php

If your supervisor and marker suspect the work may not be your own, then you may be invited to discuss your work in a viva voce (verbal exam). The details of this will be issued to you if required.

9. Presentation

You are required to use the following format:

• Use A4 size paper only.
• Type doublespaced. (You may want to use single spacing for indented quotes, footnote materials and the bibliography).
• Use one side of paper only.
• Margins should be approximately:
o 3 cms on left hand side of page to allow for binding.
o At least 1 cm on the right hand side
o 3 cms top and bottom.
• Pages should be numbered in a single sequence from the contents page onwards.
• Short quotations can run in the text within single quotation marks (double quotation marks reserved for quotations within quotations). Quotations longer than about 30 words should be set in from the side of the page (normally the indent should be more than the paragraph indent).
• Always write in complete sentences. Do not resort to note form.
• Do not use abbreviations in the text unless they are for the organisations documents etc which are commonly initialised or referred to by acronyms eg. BBC
• All abbreviations must be explained when they first appear and included in the front of the document following the contents page and the list of tables and figures.

The LNG INDUSTRY IN NIGERIA

 
I actually want a POSTER
RESEARCH TOPIC
THE LNG INDUSTRY IN NIGERIA

RESEARCH QUESTION
WHAT IS THE FUT TURE OF LNG INDUSTRY IN NIGERIA?

THREE OBJECTIVES: ( EXAMPLES, probably TO BUILD MORE LNG PLANTS IN NIGERIA (SINCE THE INDUSTRY IS DOING WELL AND THEY EXPORT 90-99%OF THE LIDUEDFIED GAS, get foreign investors for funding and partnership, GENERATE REVENUE FOR THE GOVERNMENT, turn the 20% of gas flared during this process into renewable energy for the utilization of their country)

LITRATURE REVIEW;
DATA COLLECTION: IS IT PRIMARY OR SECONDARY DATA COLLECTION?
METHODOLOGY: THE KIND OF PHILOSOPHY YOU RE LOOKING AT. USE THE RESEARH ONION (saunders et al.,2009) . AND CHOOSE THE ONE YOU ARE USING. THEN GIVE ME AN ONION DIAGRAM OF IT.
THEORY
USE AMODEL FRAME WORK.

ECONOMICS

 
MBA 540

1. (10 pts.) Stella Ann Freeman is having a difficult time deciding whether or not to purchase a new car. How would understanding the concept of opportunity costs help her make a decision?

2. (10 pts.) Referring to the table below, hiring a driver costs $10. Each machine costs $100. Which method should he use and why?

3. (10 pts.) Enron will be an example of a dysfunctional company for many years to come. It was clearly a company riddled with fraud and excess and its conduct drove it into bankruptcy. The text argues that individual behavior was not at the core of Enron’s problems. What were the problems with this corporation from an organizational architecture point of view?

4. (10 pts.) For many corporations such as utility companies, a major portion of the cost of production is fixed in the short run. Should these very large fixed costs be ignored when the executives are making output and pricing decisions? Why?

5. (10pts.) Choose a real-life example of a firm that you think is part of an oligopoly market and describe the characteristics of the market structure that explain why the firm would be classified as such.

6. (10 pts.; 2 pts each) You are the manager for Dunkin Donuts and know the following elasticities:

η= 1.5 η I = 1.2 η xy1 = 0.5 η xy2 = -0.5

η is the price elasticity of demand for Dunkin Donuts (DD) glazed doughnuts, ηxy1 is the cross elasticity of demand between DD glazed doughnuts and Krispy Kreme (KK) glazed doughnuts, ηxy2 is the cross elasticity of demand between DD glazed doughnuts and DD French Vanilla coffee, and η I is the income elasticity of DD glazed doughnuts.

a) If you want to increase your sales of glazed doughnuts by 30%, in what direction and by how much do you need to change the price?
b) If you make the percentage price change that you calculated in part a) will total revenue increase or decrease? How do you know?

c) Krispy Kreme lowers its price of glazed doughnuts by 20%. The demand for Dunkin Donuts glazed doughnuts will change by what percentage and in what direction?
d) Dunkin Donuts raises the price of its French Vanilla coffee by 15%. The demand for Dunkin Donuts glazed doughnuts will change by what percentage and in what direction?
e) If average income increases by 5% by what percentage and in what direction will the demand for Dunkin Donuts glazed doughnuts change? Are DD glazed doughnuts a normal good or an inferior good and how do you know?

7. (10 pts.) Westinghouse and General Electric are competing on the newest version of clothes washer and dryer combinations. Two pricing strategies exist: price high or price low. The profit from each of the four possible combinations of decisions is given in the following payoff matrix:

Westinghouse’s price
High ($4000) Low ($2000)
General Electric’s
price High ($4000)

Low ($2000)

Payoffs in dollars of profit.
a) (2 pts.) Which strategy offers both Westinghouse and General Electric the best financial outcome?

b) (2 pts.) Does either firm have a dominant strategy? If yes, which firm and what strategy?

c) (4 pts.) The Nash equilibrium is for Westinghouse to set its price at __________ and earn a profit of __________ and for General Electric to set its price at ______________ and earn a profit of _____________.

d) (2 pts.) Why do we see that the strategy that results is not the strategy that offers both players the best financial outcome?