BA540 Managerial Economics
Skousen, M. (2013). Economic Logic. Fourth Edition. Regnery Publishing
This midterm exam consists of four questions. Please answer them using APA format.
Two pages will be sufficient for each question.
- Antitrust authorities at the Federal Trade Commission are reviewing your company’s recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for your company to present arguments that your firm has not increased its market power through this merger. Can you do this? How? What evidence might you bring to the hearing?
- Assume that the demand for plastic surgery is price inelastic. Are the following statements true or false? Explain your answer for full credit.
- When the price of plastic surgery increases, the number of operations decreases.
- The percentage change in the price of plastic surgery is less than the percentage change in quantity demanded.
- Changes in the price of plastic surgery do not affect the number of operations.
- Quantity demanded is quite responsive to changes in price.
- The marginal revenue of another operation is negative.
Your paper should reflect scholarly writing and current APA standards. Please include citations to support your ideas.
Grading Criteria Assignments
Meets or exceeds established assignment criteria
Demonstrates an understanding of lesson concepts
Clearly presents well-reasoned ideas and concepts
Uses proper mechanics, punctuation, sentence structure, and spelling