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HBX CORE ECONOMICS FOR MANAGERS (ACTUAL ) EXAM
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HBX CORE ECONOMICS FOR MANAGERS (ACTUAL ) EXAM
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HBX CORE ECONOMICS FOR MANAGERS (ACTUAL2024-2025) EXAM
part-worth - <,answers>>>an implied numeric value that users
attach to each feature of a product.
stable market - <,answers>>>the only stable outcome—where
there are no buyers who are willing to pay for the product but
can't get it and no sellers who produce the product but can't
sell it—is the intersection of the demand and supply curves. at
that outcome, there is neither excess demand nor excess
supply. as a result, there's no incentive to raise or lower prices
further.
cobweb - <,answers>>>described here—of how prices adjust
to reach the market outcome—was very stylized: it's a bit like
imagining that there's a marketplace for lawyers where
everyone (lawyers and law firms) meets every year and looks
for someone else to transact with and where prices are bid up
or down. of course, we don't really see this precise mechanism
in every real market—other than a bazaar or marketplace.
(indeed, in many markets, firms set prices directly rather than
there being an auction or marketplace or bazaar.)
shortages - <,answers>>>to avoid this outcome, suppose that
springsteen decides to have concert tickets allocated by a
lottery
, HBX CORE ECONOMICS FOR MANAGERS (ACTUAL
2024-2025) EXAM
market adjustments - <,answers>>>if there's excess demand
or excess supply at any particular price, there are strong
incentives for either buyers or sellers to change their behavior
and move the market away from that outcome.
when there are shortages in a market, prices typically rise.
when there are surpluses, prices fall. prices adjust in order to
correct or eliminate excess supply and demand. and they do so
by creating incentives for firms to produce more or less of the
good and for buyers to demand more or less of the good,
depending on the circumstance.
anti gouging - <,answers>>>anti-gouging laws are restrictions
or laws (typically enacted by states) against increasing prices
in the face of an event like hurricane sandy.
willingness to pay for an ad - <,answers>>>the willingness to
pay for the advertisement can be calculated simply as:
average profit*expected increase in quantity demanded
where the increase in quantity demanded is just the number of
relevant viewers who would be more likely to purchase a
pampers diaper as a result of the advertisement (300,000*0.03
= 9,000).
, HBX CORE ECONOMICS FOR MANAGERS (ACTUAL
2024-2025) EXAM
demand increases - <,answers>>>so price increases
rmb - <,answers>>>an exchange rate is the rate at which one
currency (say, chinese renminbi) can be exchanged for
another (say, us dollars, abbreviated usd). renminbi is
commonly abbreviated to rmb, but in currency exchange
markets it is called cny (for chinese yuan, the unit of
renminbi). if the cny/usd exchange rate is 0.16, that means
that 1 yuan can be exchanged for 16 us cents. in other words,
an exchange rate is just the price of a particular "good"—
rmb—in dollars.
a company based in the us hoping to purchase inputs for its
products from suppliers in china
the advertising elasticity of demand (or aed -
<,answers>>>how sensitive it is to advertising
zero-sum game - <,answers>>>like in politics when only one
person can win you can bad mouth
customers value your product less when a substitute product
exists than when it does not. - <,answers>>>in terms of buyer
wtp what this means is that two products a and b are
substitutes if
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