PADM 563 final project will be in two parts. The first part of the activities will engage students in data response questions and the second part of the question will be discussion of theories. Students are expected to answer all the questions in order to get full credit for this particular activity. You are expected to read and understand the questions before you attempt them. All answers must be typed in Microsoft Word. File submission could either Microsoft word file or PDF file. Your response in Microsoft Word must be formatted by using "Times New Romans", Font-size 12pts, and spacing 2.0. All references must follow APA-style. Total marks for this particular activity is 45 marks.

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PART A: Data Response Questions: Attempt All Questions

Question 1: [24marks]

Jasmine owns 12 apartment buildings in a college town, which it rents exclusively to students. Each apartment building contains 120 rental units, but the owner is having cash flow problems due to an average vacancy rate of nearly 50 percent. The apartments in each building have comparable floor plans, but some buildings are closer to campus than others. Jasmine's accumulated data from last year on the number of apartments rented, the rental price (in dollars), and the amount spent on advertising (in hundreds of dollars) at each of the 12 apartments are available below. These data, along with the distance (in miles) from each apartment building to campus, are presented below. Jasmine is looking for an expert advice on the available data to inform administrative and business policy. By applying the knowledge gain from PADM 563 class, kindly help her regress the quantity demanded of her apartments on price, advertising, and distance by using either Excel or SPSS or Gretl.

A.Based on the regression output estimate the associated demand function for Jasmine's rental units? [2marks]

B.If Jasmine raised rents at one complex by $100, what would you expect to happen to the number of units rented? [3 marks]

C.If Jasmine raised rents at an average apartment building, what would happen to her total revenues? [5marks]

D.What inferences should be drawn from this data analysis to assist Jasmine to make a rational managerial decision? [10 marks]

Observation or (Number of Apartments)

Quantity

Price

Advertising

Distance

1

28

250

11

12

2

70

400

24

6

3

43

450

15

5

4

32

550

31

8

5

42

576

34

4

6

73

376

23

3

7

66

375

13

5

8

49

450

24

7

9

70

400

22

4

10

60

375

10

5

11

70

400

22

4

12

60

375

10

5

NB: Remember to report the actual data output as an appendix to the report. [4marks]

Question 2: [11marks]

According to an article in China Daily, China recently accelerated its plan to privatize tens of thousands of state-owned firms. Imagine that you are an aide to a senator on the Foreign Relations Committee of the U.S. Senate, and you have been asked to help the committee determine the price and quantity that will prevail when competitive forces are allowed to equilibrate the market. The best estimates of the market demand and supply for the good (in U.S. dollar equivalent prices) are given by: Qd=12 -2P and Qs=-4 + 2P, respectively.

a.Determine the competitive equilibrium price and quantity. [3marks]

b.Based on your answer to the Senate Foreign Relations Committee in question (2a), one of the senators raises a concern that the free market price might be too high for the typical Chinese citizen to pay. Accordingly, she asks you to explain what would happen if the Chinese government privatized the market, but then set a price at the Chinese equivalent of $3.00. How do you answer? What name is given to the control price $3.00? What is the full economic price for the product? [8marks]

PART B: Theory and Practice [Attempt All Questions]

Question 3: [15marks]

a.Explain the difference between and the economic relevance of fixed costs, sunk costs, variable costs, and marginal costs by using specific examples from everyday administrative activities. [5marks]

b.By using specific product markets briefly discuss the significant difference among the following market structures: (i) perfect competition, (ii) monopoly, (iii) monopolistic competition, and (iv) oligopoly. [5marks]

c.Why are externalities, public goods, and information asymmetry major problems in the market? Discuss. [5marks]

SOUTHERNUNE Final Project PADM-563: Managerial Economics Master of Public Administration Nelson Mandela College of Government and Social Sciences Southern University and A & M College PADM 563 final project will be in two parts. The first part of the activities will engage students in data response questions and the second part of the question will be discussion of theories. Students are expected to answer all the questions in order to get full credit for this particular activity. You are expected to read and understand the questions before you attempt them. All answers must be typed in Microsoft Word. File submission could either Microsoft word file or PDF file. Your response in Microsoft Word must be formatted by using "Times New Romans", Font-size 12pts, and spacing 2.0. All references must follow APA-style. Total marks for this particular activity is 45 marks. * ***** * * * * * * * * * * * PART A: Data Response Questions: Attempt All Questions Question 1: [24marks] Jasmine owns 12 apartment buildings in a college town, which it rents exclusively to students. Each apartment building contains 120 rental units, but the owner is having cash flow problems due to an average vacancy rate of nearly 50 percent. The apartments in each building have comparable floor plans, but some buildings are closer to campus than others. Jasmine's accumulated data from last year on the number of apartments rented, the rental price (in dollars), and the amount spent on advertising (in hundreds of dollars) at each of the 12 apartments are available below. These data, along with the distance (in miles) from each apartment building to campus, are presented below. Jasmine is looking for an expert advice on the available data to inform administrative and business policy. By applying the knowledge gain from PADM 563 class, kindly help her regress the quantity demanded of her apartments on price, advertising, and distance by using either Excel or SPSS or Gretl. A. Based on the regression output estimate the associated demand function for Jasmine's rental units? [2marks] B. If Jasmine raised rents at one complex by $100, what would you expect to happen to the number of units rented? [3 marks] C. If Jasmine raised rents at an average apartment building, what would happen to her total revenues? [5marks] D. What inferences should be drawn from this data analysis to assist Jasmine to make a rational managerial decision? [10 marks]SOUTHERN UN 193710 Observation or Quantity Price Advertising Distance (Number of Apartments 1 28 250 11 12 2 70 400 24 6 3 43 450 15 5 4 32 550 31 8 42 576 34 4 6 73 376 23 3 7 66 375 13 U 8 49 450 24 7 9 70 400 22 4 10 60 375 10 5 11 70 400 22 4 12 60 375 10 5 NB: Remember to report the actual data output as an appendix to the report. [4marks] Question 2: [11marks] According to an article in China Daily, China recently accelerated its plan to privatize tens of thousands of state-owned firms. Imagine that you are an aide to a senator on the Foreign Relations Committee of the U.S. Senate, and you have been asked to help the committee determine the price and quantity that will prevail when competitive forces are allowed to equilibrate the market. The best estimates of the market demand and supply for the good (in U.S. dollar equivalent prices) are given by: Qd=12 -2P and Qs=-4 + 2P, respectively. a. Determine the competitive equilibrium price and quantity. [3marks] b. Based on your answer to the Senate Foreign Relations Committee in question (2a), one of the senators raises a concern that the free market price might be too high for the typical Chinese citizen to pay. Accordingly, she asks you to explain what would happen if the Chinese government privatized the market, but then set a price at the Chinese equivalent of $3.00. How do you answer? What name is given to the control price $3.00? What is the full economic price for the product? [8marks]SOUTHERNUNE PART B: Theory and Practice [Attempt All Questions] Question 3: [15marks] a. Explain the difference between and the economic relevance of fixed costs, sunk costs, variable costs, and marginal costs by using specific examples from everyday administrative activities. [5marks] b. By using specific product markets briefly discuss the significant difference among the following market structures: (i) perfect competition, (ii) monopoly, (iii) monopolistic competition, and (iv) oligopoly. [5marks] c. Why are externalities, public goods, and information asymmetry major problems in the market? Discuss. [5marks] Instructor: Dr. Augustine Adu Frimpong