BUS 640 Wonderful Education--bus640.com

BUS 640 All New Assignments
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Week 1
Problem 1:
A generous university benefactor has agreed to donate a large amount
of money for student scholarships. The money can be provided in one
lump sum of $12 million in Year 0 (the current year), or in parts, in
which $7 million can be provided at the end of Year 1, and another $7
million can be provided at the end of Year 2.
Describe your answer for each item below in complete sentences,
whenever it is necessary. Show all of your calculations and processes
for the following points:
Assuming the opportunity interest rate is 8%, what is the present
value of the second alternative mentioned above? Which of the two
alternatives should be chosen and why?
How would your decision change if the opportunity interest rate is
12%?
Provide a description of a scenario where this kind of decision
between two types of payment streams applies in the “real-world”
business setting.
Problem 2:
The San Diego LLC is considering a three-year project, Project A,
involving an initial

Describe and calculate Project A’s expected net present value (ENPV)
and standard deviation (SD), BUS640 Week 2 Assignment
Consumer Demand Analysis and Estimation Applied Problems
Please complete the following two applied problems:
Problem 1:
Patricia is researching venues for a restaurant business. She is
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BUS 640 Entire Course
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BUS 640 Week 1 DQ 1 Firm Objectives
BUS 640 Week 1 DQ 2 Decision Making Under Uncertainty
BUS 640 Week 1 Economics of Risk and Uncertainty Applied
Problems
BUS 640 Week 2 DQ 1 Marginal Rate of Substitution
BUS 640 Week 2 DQ 2 Demand Elasticity
BUS 640 Week 2 Consumer Demand Analysis and Estimation
Applied Problems
BUS 640 Week 3 DQ 1 Relevant Costs
BUS 640 Week 3 DQ 2 Contribution Analysis
BUS 640 Week 3 Production Cost Analysis and Estimation Applied
Problems
BUS 640 Week 4 DQ 1 Strategic Behavior Oligopolies
BUS 640 Week 4 DQ 2 Local Market Power
BUS 640 Week 4 Market Structures and Pricing Decisions Applied
Problems
BUS 640 Week 4 Journal Economics in News
BUS 640 Week 5 DQ 1 Good Will in Price Bidding
BUS 640 Week 5 DQ 2 New Product Introduction
BUS 640 Week 5 Price Quotes and Pricing Decisions Applied

Problems
BUS 640 Week 6 DQ 1 Game Theory and Strategic Behavior
BUS 640 Week 6 DQ 2 Sustainable Competitive Advantage
BUS 640 Week 6 Final Paper Managerial Decision Making
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BUS 640 Week 1 DQ 1 Firm Objectives
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Firm Objectives. Why do some business firms pursue a triple-bottom-
line outcome while others focus only on profit maximization? Please,
use a real company example to illustrate your points
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BUS 640 Week 1 DQ 2 Decision Making Under
Uncertainty
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Decision Making Under Uncertainty. To save on gasoline expenses,
Edith and Mathew agreed to carpool together for traveling to and
from work. Edith preferred to travel on I-20 highway as it was usually
the fastest, taking 25 minutes in the absence of traffic delays. Mathew
pointed out that traffic jams on the highway can lead to long delays
making the trip 45 minutes. He preferred to travel along Shea
Boulevard, which was longer (35 minutes), but rarely had traffic jams.
Edith agreed that in case of traffic jams, Shea Boulevard was a

reasonable alternative. Neither of them knows the state of the
highway ahead of time.
After driving to work on the I-20 highway for 1 month (20 workdays),
they found the highway to be jammed 3 times. Assuming that this
month is a good representation of all months ahead, should Edith and
Mathew continue to use the highway for traveling to work?
How would you conclusion change for the winter months, if bad
weather makes it likely for traffic jams on the highway to increase to
6 days per month?
How would your conclusion change if Mathew purchased a new
smart-phone app that could show the status of the highway traffic
prior to their drive each morning, thus reducing the probability of
them getting into a jam down to only 1day per month (where on this
day, the app showed no traffic jam, but a jam developed in the
meantime as they were driving along the highway).
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BUS 640 Week 1 Economics of Riskand Uncertainty
Applied Problems (New)
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BUS640 week 1 Assignment
Problem 1:
A generous university benefactor has agreed to donate a large amount
of money for student scholarships. The money can be provided in one
lump sum of $12 million in Year 0 (the current year), or in parts, in
which $7 million can be provided at the end of Year 1, and another $7
million can be provided at the end of Year 2.

Describe your answer for each item below in complete sentences,
whenever it is necessary. Show all of your calculations and processes
for the following points:
Assuming the opportunity interest rate is 8%, what is the present
value of the second alternative mentioned above? Which of the two
alternatives should be chosen and why?
How would your decision change if the opportunity interest rate is
12%?
==============================================
BUS 640 Week 2 Consumer Demand Analysis and
Estimation Applied Problems (New)
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We have another Set (old one) of Week 2 Assignment (But with
different description, values), it can be found on this link
Week 2 Assignment
Consumer Demand Analysis and Estimation Applied Problems
Problem 1:
Patricia is researching venues for a restaurant business. She is
evaluating three major attributes that she considers important in her
choice: taste, location, and price. The value she places on each
attribute, however, differs according to what type of restaurant she is
going to start. If she opens a restaurant in a suburban area of Los
Angeles, then taste is the most important attribute, three times as
important as location, and two times as important as price. If she
opens a restaurant in the Los Angeles metropolitan area, then location
becomes three times as important as taste and two times as important

as price. She is considering two venues, respectively, a steak
restaurant and a pizza restaurant, both of which are priced the same.
She has rated each attribute on a scale of 1 to 100 for each of the two
different types of restaurants.
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BUS 640 Week 2 DQ 1 Marginal Rate of Substitution
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Marginal Rate of Substitution. What is the marginal rate of
substitution (MRS) and why does it diminish as the consumer
substitutes one product for another? Use examples to illustrate
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BUS 640 Week 2 DQ 2 Demand Elasticity
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Demand Elasticity. Please, read the article Hainer, R. (2010),
provided in the required readings section for this week. The tobacco
industry is a prime example to consider when talking about price
elasticity of demand. While nicotine use can be addictive for many
users, it is not addictive for the so-called "social smokers".
What can we say about the price elasticity of demand for nicotine
products (such as cigarettes, pipes, tobacco) in the group of nicotine
addicted users, versus the group of "social smokers"? Can we say
whose demand is likely to be more elastic? Why?

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BUS 640 Week 3 DQ 1 Relevant Costs
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Relevant Costs. Two partners own together a small landscaping
business in North Carolina, called Summer Lawn Care. They have
been specializing in summer grass seeding, installation, and
maintenance. Recently, the partners acquired special technology and
know-how for winter grass installations and maintenance. They also
added a tree cutting service as recent storms in the area had caused
demand for this service to soar. One of the partners insists that the
name of the business should change to Lawn and Tree Care, so that it
better reflects the range of services and, thus, generates more
customer interest, and thus contracts. The second partner wants to
keep the old name and argues, “We have already paid for business
cards, vehicle paint, signage, and ads in Yellow Pages”. Evaluate the
arguments of the two partners. Explain and illustrate their points by
identifying the relevant and irrelevant costs for this decision.
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BUS 640 Week 3 DQ 2 Contribution Analysis
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Contribution Analysis. Explain what is meant by “contribution
analysis”. Carefully define the term and provide examples to illustrate
it.

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BUS 640 Week 3 Production Cost Analysis and
Estimation Applied Problems (New)
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Production Cost Analysis and Estimation Applied Problems
Problem 1:
Problem 2:
The Paradise Shoes Company has estimated its weekly TVC function
from data collected over the past several months, as TVC = 3450 +
20Q + 0.008Q2 where TVC represents the total variable cost and Q
represents pairs of shoes produced per week. And its demand equation
is Q = 4100 – 25P. The company is currently producing 1,000 pairs of
shoes weekly and is considering expanding its output to 1,200 pairs of
shoes weekly. To do this, it will have to lease another shoe-making
machine ($2,000 per week fixed payment until the lease period ends).
Show all of your calculations and processes. Describe your answer for
each item below in complete sentences, whenever it is necessary.
a. Describe and derive an expression for the marginal cost (MC)
curve.
b. Describe and estimate the incremental costs of the extra 200
pairs per week (from 1,000 pairs to 1,200 pairs of shoes).

c. What are the profit-maximizing price and output levels for
Paradise Shoes? Describe and calculate the profit-maximizing
price and output.
d. Discuss whether or not Paradise Shoes should expand its output
further beyond 1,200 pairs per week. State all assumptions and
qualifications that underlie your recommendation.
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BUS 640 Week 4 DQ 1 Strategic Behavior Oligopolies
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Strategic Behavior Oligopolies. An interesting example of strategic
behavior comes from a 1997 article about Microsoft’s investment in
Apple (New Straits Times, 1997). The article is included in the
Required Readings list. Facing tough anti-trust scrutiny from
government agencies, Microsoft provided financial support to Apple
in order to ensure Apple’s survival and, therefore, to ensure that
competitiveness in the industry remains. Moreover, the partnership
with Apple provided an additional market for Microsoft’s products –
the MS Office and the IE products were to be bundled with the MAC
OS as one of the conditions for this financing. Discuss this case in the
context of market structure and strategic behavior. What market
structure do these firms operate in? Why did Microsoft need to
preserve competitiveness in the industry? What was Microsoft afraid
of in the event that Apple did not survive?
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BUS 640 Week 4 DQ 2 Local Market Power

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Local Market Power. Bulls Eye department store specializes in the
sales of discounted clothing, shoes, household items, etc. similar to
the offerings at a regular Walmart or Target. Bulls Eye is the only
department store in Show Low and the nearest other discount retailer
is Target, located 49 miles away in Eagar. Bulls Eye, therefore, has
some market power in its local area. Despite having some market
power, Bulls Eye is currently suffering losses. An analyst at Bulls Eye
is recommending to the manager to raise prices, so that profitability
can be improved. The manager is unsure of this strategy as recent data
points to increasing numbers of individuals shopping more and more.
What are the pros and cons of raising the prices at Bulls Eye and
would that strategy be profitable?
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BUS 640 Week 4 Market Structures and Pricing
Decisions Applied Problems (New)
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We have another Set (old one) of Week 4 Assignment (But with different description,
values), it can be found on this link
Market Structures and Pricing Decisions Applied Problems.
Problem 1:
Robert’s New Way Vacuum Cleaner Companyis a newly started small business that
produces vacuum cleaners and belongs to a monopolisticallycompetitive market.Its
demand curve for the productis expressed as Q = 5000 – 25P where Q is the number of
vacuum cleaners per year and P is in dollars.Costestimation processes have determined
that the firm’s costfunction is represented by TC = 1500 + 20Q + 0.02Q2.
Show all of your calculations and processes.Describe your answer for each question in
complete sentences,whenever itis necessary.
a. What are the profit-maximizing price and output levels? Explain them and calculate
algebraicallyfor equilibrium P (price) and Q (output). Then, plotthe MC (m arginal
cost), D (demand),and MR (marginal revenue) curves graphicallyand illustrate the
equilibrium point.
b. How much economic profitdo you expect that Robert’s companywill make in the
first year?
c. Do you expect this economic profitlevel to continue in subsequentyears? Why or
why not?
Problem 2:
Greener Grass Company(GGC) competes with its main rival, Better Lawns and Gardens
(BLG), in the supplyand installation ofin-ground lawn watering systems in the wealthy
western suburbs ofa major east-coastcity. Lastyear, GGC’s price for the typical lawn
system was $1,900 compared with BLG’s price of$2,100. GGC installed 9,960 systems,or
about60% of total sales and BLGinstalled the rest.(No doubtmany additional systems
were installed by do-it-yourselfhomeowners because the parts are readily available at
hardware stores.)
GGC has substantial excess capacity–itcould easilyinstall 25,000 systems annually,as it
has all the necessaryequipmentand can easilyhire and train installers.Accordingly, GGC
is considering expansion into the eastern suburbs,where the homeowners are less wealthy.
In pastyears, both GGC and BLG have installed several hundred systems in the eastern
suburbs butgenerallytheir sales efforts are metwith the response thatthe systems are too
expensive. GGC has hired you to recommend a pricing strategyfor both the western and
eastern suburb markets for this coming season.You have estimated two distinctdemand
functions,as follows:
Qw =2100 – 6.25Pgw + 3Pbw + 2100Ag - 1500Ab + 0.2Yw
for the western marketand
Qe = 36620 - 25Pge + 7Pbe + 1180Ag - 950Ab + 0.085Ye
for the eastern market,where Q refers to the number of units sold;P refers to price level; A
refers to advertising budgets ofthe firms (in millions);Y refers to average disposable
income levels ofthe potential customers;the subscripts w and e refer to the western and
eastern markets,respectively;and the subscripts g and b refer to GGC and BLG,
respectively. GGC expects to spend $1.5 million (use Ag = 1.5) on advertising this coming
year and expects BLG to spend $1.2 million (use Ab = 1.2) on advertising.The average
household disposable income is $60,000 in the western suburbs and $30,000 in the eastern
suburbs.GGC does notexpect BLG to change its price from lastyear because ithas
already distributed its glossybrochures (with the $2,100 price stated) in both suburbs,and
its TV commercial has alreadybeen produced.GGC’s coststructure has been estimated as
TVC = 750Q+ 0.005Q2,where Q represents single lawn watering systems.
Show all of your calculations and processes.Describe your answer for each item below in
complete sentences,whenever itis necessary.
a. Derive the demand curves for GGC’s productin each market.
b. Derive GGC’s marginal revenue (MR) and marginal cost(MC) curves in each

market.Show graphicallyGGC’s demand,MR, and MC curves for each market.
c. Derive algebraicallythe quantities thatshould be produced and sold,and the prices
that should be charged,in each market.
d. Calculate the price elasticities ofdemand in each marketand discuss these in
relation to the prices to be charged in each market.
e. Add a shortnote to GGC managementoutlining anyreservations and qualifications
you may have concerning your price recommendations.
Reference:
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BUS 640 Week 5 DQ 1 Good Will in Price Bidding
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Good Will in Price Bidding. Sometimes, a bidder on a work contract
may bid lower than what would maximize his/her profit from the
contract and the reason for that is to create goodwill (to increase
expected future business from the buyer). How would you value the
goodwill that is obtained in this way?
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BUS 640 Week 5 DQ 2 New Product Introduction
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New Product Introduction. Bayer Schering Pharma AG, Germany
owns the Alka-Seltzer, which was launched in 1931 and was meant
for relief of minor aches, pains, inflammation, fever, headache,
heartburn, sour stomach, indigestion, and hangovers. The Alka-

Seltzer Plus was a spin-off of the original medicine, meant to relieve
colds and flu.
The company has recently introduced a new and improved Alka-
Seltzer Plus, as described in the TV ad: “The Cold Truth”, (please,
watch the ad listed in the Required Readings)
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BUS 640 Week 5 Price Quotes and Pricing Decisions
Applied Problems (New)
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Week 5 Assignment
Price Quotes and Pricing Decisions Applied Problems
Problem 1:
Jessica Alba, a famous actress, starts the baby and family products
business, The Honest Company, with Christopher Gavigan. Alba and
Gavigan set up their site so families can choose what kinds of non-
toxic, all-natural products they'd like to use and get them in a bundle.
Families can choose all kinds of products from food to hygiene
necessities and cleaning supplies. Suppose they are thinking of
expanding their business into five domestic markets: Phoenix, Dallas,
Chicago, New York, and Atlanta. Assume their primary goal of
business is to maximize economic profits, although they want to do

business honestly.
Show all your calculations and process. Describe your answer for
each question in three- to five-complete sentences.
a. You are a business adviser for Alba and Gavigan. Describe a
skimming price and a penetration price, and advise them
whether they should charge a skimming price or a penetration
price, with supportive reasoning for and against each pricing
alternative.
b. Are they likely to make economic profits initially? Can they
continue to make economic profits in the long term? Why or
why not? Discuss.
c. What advice would you give to Alba and Gavigan to help them
make more profit in the long term?
Problem 2:
You operate your own small building company and have decided to
bid on a government contract to build a pedestrian walkway in a
national park during the coming winter. The walkway is to be of
standard government design and should involve no unexpected costs.
Your present capacity utilization rate is moderate and allows
sufficient scope to understand this contract, if you win it. You
calculate your incremental costs to be $268,000 and your fully
allocated costs to be $440,000. Your usual practice is to add between
60% and 80% to your incremental costs, depending on capacity
utilization rate and other factors. You expect three other firms to also
bid on this contract, and you have assembled the following competitor
intelligence about those companies.
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BUS 640 Week 6 DQ 1 Game Theory and Strategic
Behavior

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Game Theory and Strategic Behavior. Suppose that GE is trying to
prevent Maytag from entering the market for high efficiency clothes
dryers. Even though high efficiency dryers are more costly to
produce, they are also more profitable as they command sufficiently
higher prices from consumers. The following payoffs table shows the
annual profits for GE and Maytag for the advertising spending and
entry decisions that they are facing.
Based on this information, can GE successfully prevent Maytag from
entering this market by increasing its advertising levels? What is the
equilibrium outcome in this game?
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BUS 640 Week 6 DQ 2 Sustainable Competitive
Advantage
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Sustainable Competitive Advantage. Describe the circumstances
under which a firm chooses a low-cost strategy to attain sustainable
competitive advantage. What about the situations when a
differentiation strategy is chosen? Provide specific real world
examples.
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BUS 640 Week 6 Final Paper (Apple)

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We have another set of final paper based on walmart which could be
found on this link
Focus of the Final Paper
Research a specific company of your choice and identify some of the
managerial decisions that were made over time and in response to
changes in its market or competitive environment. Use the Ashford
University Online Library and web-based sources for your research.
At least three external scholarly sources must be used. Address all of
the following areas:
Describe the company and provide a brief history of its operations.
Find or use graphs to illustrate its financial performance over the
years.
Identify any sources of risk or uncertainty in its operations. Do the
financial reports indicate risky or uncertain activities or changes to the
economic environment that ultimately appear to have affected the
company’s financial outcomes? Be specific.
Are there any government regulations that have affected this
company’s operations domestically or abroad? Explain.
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BUS 640 Week 6 Final Paper (Wal-mart)

www.bus640.com
We have another set of Final Paper based on Apple company, it
could be found on this link
BUS640 Week 6 Paper(Wal-Mart)
Managerial Decision Making Research and Analysis
Research a specific company of your choice and identify some of the
managerial decisions that were made over time and in response to
changes in its market or competitive environment. Use Ashford
University Online library and web-based resources for your research.
At least 3 external resources must be used. Address all of the
following areas:
Focus of the Final Paper
Describe the company and provide a brief history of its operations.
Find or use graphs to illustrate its financial performance over the
years.
Identify any sources of risk or uncertainty in its operations. Do the
financial reports indicate risky or uncertain activities or changes to the
economic environment that ultimately appear to have affected the
company’s financial outcomes? Be specific.
Are there any government regulations that have affected this
company’s operations domestically or abroad? Explain.
Describe the inputs that are used in this company’s production
function and identify any challenges to securing these inputs.
Determine if the company has introduced new products in existing
markets or created new markets over time. What is the impact on its

finances?
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