Bài tập quản lý kinh tế (MANAGERIAL ECONOMIC, ban dich tieng anh)

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TRAINING PROGRAM
GLOBAL ADVANCED MASTER OF BUSINESS
ADMINISTRATION
MANAGERIAL ECONOMICS

Lecturer : PhD. Tran Ngoc Thu
Full name : NGUYEN DO THANH
HCM city – Feb/2012
INDIVIDUAL ASSIGNMENT
SUBJECT: MANAGERIAL ECONOMICS
Exercise 1: Suppose that the estimating regression results of the demand
function for Sony digital camera as follows

Requirements:
1/ Please construct the demand function of this product, the first independent
variable is the price of Sony digital camera, the second one is the population's
income, and the third one is the Canon digital camera’s price.
2/ Is the estimating regression reliable? Why?
3/ What information does the estimating results provide for SONY camera
company?
Solution:
1. The demand functions of Sony digital camera:
y = β
0
+ β
1
x
1
+ β
2

x
2
+ β
3
x
3
In which:
- y is the variable of the demand function of Sony digital camera;
- x
1
is the variable of the price of Sony digital camera;
- x
2
is the second independent variable of the population
’
s income;
2
- x
3
is the third independent variable of the price of Canon digital camera;
* The regression model in this case includes:
y = 786.8849 – 1.20651x
1
+ 0.292605x
2
+ 0.00501x
3
2. Is the estimating regression reliable?
Suppose the reliable indicator α = 0.05, we have:
β

0
= 786.8849 with p-value = 1.66*10
-7
< 0.05: reliable indicator;
β
1
= – 1.206519 with p-value = 4.52*10
-9
< 0.05: reliable indicator;
β
2
= 0.292605 with p-value = 2.88*10
-6
< 0.05: reliable indicator;
β
0
= 0.00501 with p-value = 0.003259 < 0.05: reliable indicator;
Conclusion: The said estimating regression reliable
3. The said estimating results provide information for Sony digital camera
company as follows:
From the regression model:
y = 786.8849 – 1.20651x
1
+ 0.292605x
2
+ 0.00501x
3
, we have
β
1

= - 1.20651: When population's income and the price of Canon
products are constant, the increase of the price of Sony digital product has
driven the demand for this product to reduce 1.20651;
β
2
= 0.292605 If the prices of Sony and Canon products are constant, the
increase of the population
’
s income will drive the demand for this product to
increase 0.292605;
Β
3
= 0.0050: When population
’
s income is constant and the price of Sony
product is constant, the increase of the price of Canon products will increase the
demand for the product Sony at 0.00501;
After considering these three coefficients, we can see that the price of
each product is strongly influenced by consumer demands. Income is also an
important factor affecting people's needs. However, the price of Canon product
does not affect consumption for Sony digital product of the people.
EXERCISE 2: ASSUME THAT COMPANIES A and B TRADE IN
PRODUCT X ON THE MARKET. IF A AND B ADVERTISE THE
PRODUCT X, then A AND B's PROFIT WILL BE 12 BILLION VND. IF A
ADVERTISES, IN WHICH B DOES NOT ADVERTISE, THE PROFITS
OF A AND B will be 15 BILLION VND AND 4 BILLION VND
RESPECTIVELY. IF B ADVERTISES, IN WHICH A DOES NOT
ADVERTISE, THE PROFIT OF B AND A WILL BE 18 BILLION VND
AND 5 BILLION VND RESPECTIVELY. IF BOTH A AND B
TOGETHER DO NOT ADVERTISE, THE PROFITS OF A AND B WILL

BE 17 BILLION VND AND 6 BILLION VND RESPECTIVELY. Please
follow these requirements:

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1. Construct the matrix to reflect profits of A and B in the above cases
2. Which reasonable strategies will A & B be?
3. If A does not advertise, which reasonable strategy will B be? In contrast, if B
does not advertise, which reasonable strategies will A be?
4. Which companies have dominant strategies?
5. Should both companies co-operate? And should they be partnership in long
term? Why?
Solution:
1. Construct the matrix to reflect profits of A and B:
Company A
Advertising No advertising
2. Which reasonable strategies will A & B be?
Reasonable strategies of A and B shall be a dominant strategy for
companies A and B, A and B will choose to advertise, regardless of how
competitors react. We call the output of the game is balanced with the dominant
strategy.
3. If A does not advertise, which reasonable strategy will B be? In
contrast, if B does not advertise, which reasonable strategies will A be?
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12 billion
12 billion
5 tỷ
18 billion
17 billion
6 billion
15 billion

4 billion
Company B
Advertising
No advertising
- If A does not advertise, the reasonable strategy of B will be advertising,
because the profits of B will increase from 4 billion (not advertising) to 18
billion (if B advertises).
- In contrast, If B does not advertise, the reasonable strategy of A will not
be advertising, because the profits of B will increase from 4 billion (not
advertising) to 18 billion (if A does not advertises)
4. Which companies have dominant strategies?
Through analysis of the dominant strategy of A and B in question 3, the
reasonable strategy of A will not be advertising; the reasonable strategy of B
will be advertising. Thus
- Company A does not have the dominant strategy.
- Strategy of company is more dominant than A: Advertising
5. Should both companies co-operate? And should they be partnership in
long term? Why?
Both companies trade in a product X, for mutual benefit, they should
work together. Because the sales of A and B at the time of advertising and none-
advertising, we can see that market dominance of A is greater than B, in
contrast, A is more dominant on advertising. To harmonize advantages, they
should work together. However, the current or non-current cooperation is still
subject to their reasonable strategies at that time
Exercise 3:
A wooden furniture manufacturing company is looking for any place to
build a plant. This is an industry requiring wood-skillful employees. He is
considering among Binh Chanh district (Ho Chi Minh city), Thu Dau Mot town
(Binh Duong province) and Long Thanh district (Dong Nai province).
Accordingly, operating conditions and environment of three locations are

similar. After a marketing research, he has collected the following data:
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Binh Chanh
district
Thu Dau Mot
town
Long Thanh
district
Salary for
skillful
employee
(million VND)
2,2 1,6 1,8
Marginal
productivity of
labor
(products/day)
15 12 13
Please give him your advice according to the economic management’s
knowledge
Solutions:
It is supposed that working days include 26 days/month;
- At Binh Chanh district: Marginal productivity 15 products /day and
wage will be 2.2 million VND /month. Thus, labor cost shall be
5.641vnd/product;
- At Thu Dau Mot town: Marginal productivity 12 products /day and
wage will be 1.6 million VND/ month. Thus, labor cost shall be 5.128 VND
/product;
- At Long Thanh district: Marginal productivity 13 products /day and
wage will be 1.8 million VND/month. Thus, labor cost shall be 5.325

VND/product
With the said analysis, labor wage at Thu Dau Mot town is lowest (5.128
vnd/product) compared to other locations.
Besides the labor costs, the administrator should consider other expenses
such as raw material costs, overall production costs, transportation costs, site
costs to select to locate the plant. /.
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