Over the past six months Swoosh Motors Ltd. normally had sales of 50 BMW SUVs per quarter. On the quarters when Swoosh Motors ran discounts on its other luxury vehicle, Porsche SUV, by cutting the price from $175,000 to $125,000, sales of the BMW SUVs declined to 15 vehicles per quarter. The arc cross elasticity of demand between the Swoosh's BMW and Porsche luxury vehicles is

4.In question 3 above, the type of relationship which exists between Porsche and BMW can be classified as

5.The estimated demand and supply functions for a company which produces vaccines is given by:

Q_xd = 400 - 13P_x

Q_xs = 280 + 7P_x

The equilibrium price for the demand and supply functions above is:

6.The equilibrium quantity for the demand and supply functions in question 5 is:

7.According to the Marris Model, a flatter supply-growth curve is associated with all of the following except:

A.Lower retention ratios

B.Decrease in shareholders wealth

C.Threat of take-over is perceived as weak

D.Managers place a high premium on growth relative to job security

9.When comparing the unconstrained version of Baumol's Sale Revenue to the Neo-classical Profit Maximizing model

A.Price is higher in Baumol's model

B.Output is higher in Baumol's model

C.Profits are higher in Baumol's model

D.Profits are the same in both models

10.In the agency principle which forms part of the Managerialist criticism of the neo-classical model, who are the agents and who are the principals, respectively

A.Customers, creditors

B.Managers, shareholders

C.Shareholders, managers

D.Government, shareholders

11.Scarcity of goods resulting in the reduction in the negotiating power of consumers as they compete for the right to purchase goods from producers is categorized as which type of rivalry in economic transactions:

A.Consumer - producer rivalry

B.Producer - producer rivalry

C.Government - market rivalry as it seeks to protect consumers

D.Consumer - consumer rivalry

12.If managerial utility is to be maximised, the last pound spent on S, M and D can be represented in which of the equations below?

A.MU_S = MU_M + MU_{D(1 - t)}

B.MU_S - MU_D - MU_{D(1 - t)} = 0

C.MU_S = MU_M = MU_{D(1 - t)}

D.MU_S + MU_M + MU_D(1-t)