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Managerial Decision-MakingImagine that you are a manager and that two of your employees are blaming one another for a recent project not going well. This is a common scenario that you may have already experienced. What factors would you consider in deciding whom to believe? Who else would you talk to before making a decision? What would you do to try to reduce the likelihood of this happening again? Feel free to directly answer these questions in the hypothetical, or reflect on a time this has happened to you.

The demand function for a new smartphone is given by Q=350−2P, where P is the price in dollars and Q is the quantity demanded. If the price is set at $150, how many units will be sold? (1 point) Find the price elasticity of demand when the price decreases from $150 to $120. (2 points) Is the price elasticity of demand elastic or inelastic? (1 point) PLEASE SHOW ALL WORK FOR FULL CREDIT AND USE THE TEXT BOX PROVIDED

Extra Credit (10 Points) A large number of firms sell an undifferentiated product whose demand is given by P=200−Q. Any firm can produce the product according to TC=20Q, so that MC=20. Supply is thus P=20. Find the price and quantity sold in the market. Calculate total revenue and profits across the firms in the industry. (4 points) A manager at one of the firms (let’s call it Eureka) gets an idea for distribution that changes its cost structure to TC=10+Q+0.5Q2 so that MC=1+Q. The idea is a secret, and no other firms in the industry are able to successfully implement it. What quantity does Eureka now sell? Calculate Eureka’s revenue and profit, if any. (6 points) Hint: As this is a competitive industry, MR=20. PLEASE SHOW ALL WORK FOR FULL CREDIT AND USE THE TEXT BOX PROVIDED

The market demand function is P=150−2*(Q1+Q2), where Q1 and Q2​ are the quantities produced by firm 1 and firm 2, respectively. Consider that these two firms are the only ones serving this market. Both firms have constant marginal costs MC1=MC2=20. Derive the reaction functions for both firms. (3 points) Find the Cournot equilibrium quantities for each firm and the market price. (4 points) If the firms collude, what price do they charge to maximize profit? (4 points) Fill the payoff matrix (4 points) Firm 2 plays Cournot Firm 2 plays Collude Firm 1 plays Cournot Firm 1 plays Collude   PLEASE SHOW ALL WORK FOR FULL CREDIT AND USE THE TEXT BOX PROVIDED

CLO 4 Your pregnant patient has been complaining to you about not being able to get comfortable at night to sleep and is asking you what positions she should be avoiding. Which of the following positions should be discouraged? 

A firm’s total revenue is TR=500Q−10Q2, and its total cost is TC=200Q+5Q2 (MC = 200 + 10Q). Find the profit-maximizing quantity. (2 points) Calculate the price at this quantity. (2 points) Determine the firm’s maximum profit. (2 points) PLEASE SHOW ALL WORK FOR FULL CREDIT AND USE THE TEXT BOX PROVIDED

CLO 4 Pregnant women have frequent problems with the musculoskeletal system, including all of the following except: 

 A PTA is preparing to treat a patient who is 4 weeks status post olecranon fracture.  Which of the following exercises is most appropriate in this phase of rehab?

A 16 year old high school track participant returns to physical therapy after seeing his physician.  The physician informs the patient that magnetic resonance imaging has shown a significant tear in the medial meniscus of the left knee.  As you look back on the physical therapist’s initial evaluation, which of the following special tests would you expect to have been positive?

TechNova Solutions develops two productivity software products: LexiType, a word processor, and CalcPro, a spreadsheet tool. There are two types of customers: Writers and Analysts. Each group consists of 100 individuals, and they have the following reservation prices for each product: The company’s marginal costs are zero, and the fixed costs are $8,500 for LexiType and $10,500 for CalcPro. Questions: If TechNova Solutions sells LexiType and CalcPro separately, what are the profit-maximizing prices, and what is the maximum achievable profit? (4 points) What is the total value of these software products to the 200 customers if they received them for free? (In other words, calculate the total consumer surplus without pricing.) How does this compare to TechNova’s fixed costs? (4 points) Suppose TechNova Solutions cannot charge different prices to different customer groups and must set a single price for each product. What alternative pricing strategy could the company use to generate higher profits than selling separately? (4 points) LexiType CalcPro Writers  75 50 Analysts 40 70   PLEASE SHOW ALL WORK FOR FULL CREDIT AND USE THE TEXT BOX PROVIDED