Scribd Logo
Upload

Welcome to Scribd!

  • Memo 13: Managerial Economics and Business Strategy, 8e

    Uploaded by

    Diego PaBe
    24 views1 page
    An intern provided a spreadsheet to analyze the potential impact of a 2.85% decline in regional income, but the manager could not understand it and requested a simplified summary. The manager needs to know how much prices would need to be cut to maintain the current customer base if income declines as forecasted, based on the estimated demand function provided.

    Original Description:

    Memo_13 MAnagerial Economics

    Original Title

    Memo_13

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    An intern provided a spreadsheet to analyze the potential impact of a 2.85% decline in regional income, but the manager could not understand it and requested a simplified summary. The manager needs to know how much prices would need to be cut to maintain the current customer base if income declines as forecasted, based on the estimated demand function provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    24 views1 page

    Memo 13: Managerial Economics and Business Strategy, 8e

    Uploaded by

    Diego PaBe
    An intern provided a spreadsheet to analyze the potential impact of a 2.85% decline in regional income, but the manager could not understand it and requested a simplified summary. The manager needs to know how much prices would need to be cut to maintain the current customer base if income declines as forecasted, based on the estimated demand function provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Managerial Economics and

    Business Strategy, 8e

    Memo 13
    To:

    Sales Manager, Region 3

    From:

    Regional Manager, Region 3

    Re:

    Recession Question

    One of your MBA Interns sent the attached spreadsheet in response to a question I asked
    regarding the potential impact of the 2.85 percent decline in income that has been forecasted
    for our Region 3 market. This is nuts do they not teach people how to speak in words any
    more?
    What do the numbers mean? Can you help me out? All I need to know is this: If income
    declines by 2.85 percent as forecasted, how much will we have to cut price in order to
    maintain our existing base of customers?
    Attachment: Output.xls

    Hint: The estimated demand funciton is Qd = 0.4531 - 2.1365(logP) + 0.9017(logM).

    You might also like