Part A,B,C - Pulsar Plc is considering of exporting its products

Question # 00637551
Subject: Education
Due on: 08/06/2022
Posted On: 08/06/2022 03:25 AM
Tutorials: 1
Rating:
4.9/5
Getsolution
Posted By:
Questions:
1328
Tutorials:
1327
Feedback Score:
Report this Question as Inappropriate
Question Dot Image

California Types of Opportunity Cost During the Decision Making Process Questions

 PART A (40 points in total)

Answer ALL of the following Questions. Please choose ONE (and only one) available answer for each one of them. Choosing more than one option is treated as a wrong answer. List your chosen option in your answer booklet(s).

1. Pulsar Plc is considering of exporting its products to the Swedish market. It expects to earn an annual accounting profit of £200m from doing so. It has also the option to begin exporting to India, Brasil or South Africa, but it has the production capacity for only one of the four possible markets (including Sweden). The expected annual accounting profit for the above three markets is £250m, £200m, and £150m respectively. On the basis of this information, the economic profit of exporting to Sweden is equal to:

 a. -£50m. b. £0m. c. £50m. d. £200m.

2. If the marginal cost is above the average cost at a certain level of production and the firm decides to increase output, then: Version 1

a. The average cost will increase but the marginal cost will decrease.

b. Both the average and the marginal cost will increase.

c. The average cost will increase but the average cost will decrease.

d. Both the average and the marginal cost will decrease.  

3. Which one of the following conditions you would least expect in a supply-driven market?

a. Highly standardized products.

b. Massive market size.

 c. Big corporate customers.

d. Fast technological change.

4. Samsung sells its 16in monitors to Apple for £85 per screen. Its estimated cost is £49 and Apple is willing to pay up to £99. The value creation (VC) and consumer surplus (CS) in this case are equal to:

a. VC=£50 , CS=£14.

b. Impossible to say.

c. VC=£36 , CS=£14.

d. VC=£99 , CS=£36.

5. Which one of the following is not an element of the five forces framework?

a. Internal rivalry.

b. Entry.

c. Supplier power.

d. Exit.

6. The market for social-media-monitoring software exhibits very strong network externalities: The firm with the highest market share doubles its market share every year. It took Rogue Inc 20 years to obtain 100% market share and become a monopoly. How may years did it take for Rogue Inc to obtain 25% market share?

 a. 5.

b. 18.

c. 15.

d. 7.

7. In order to increase the creativity of its staff, Google invested in a highly unique headquarters building, brimming with indoor leisure activities and places for staff to socialize. What type of asset-specific investment is this?

a. Site-specific investment.

b. All other options are correct.

c. Physical asset investment.

d. Human asset investment.

8. The two most important types of innovation risk for businesses are:

a. Funding risk and fire risk.

b. Regulation risk and insurance risk.

c. Project-completion risk and methodology-correlation risk.

d. Ethical risk and supply-chain risk.

PART B (30 points in total)

 Please pick and answer only ONE out of the two questions below. If you answer more than one question, then the first question that appears in your answer-book will count to your score.

9. Ouroboros’ total cost (TC) as a function of its production level q is given by the equation below: TC(q) = 2???? 2 − 12,000q + 30,000,000

a. How much is the fixed cost of production for Ouroboros? (5 points)

b. If q=5,000, how much is the total cost for Ouroboros? (5 points)

c. Evaluate the marginal cost for Ouroboros when q=3,000. (5 points)

d. For this part, suppose that Ouroboros has two corporate customers. The first corporations’ demand as a function of Ouroboros’ price is given by ???????? (????) = 10,000 − ???? and the second corporation’s demand function is given by ???????? (????) = 20,000 − ????. Calculate Ouroboros’ maximum possible profit level. (15 points)

10. HealthLife and Voltality are competing in a patent race for a new generation of anti-ageing products. Each one of them needs to pick one of two research approaches. The first approach (X1), is fully deterministic and it will take 10 years to complete. The second one, (X2) is probabilistic and it has a probability of 60% to complete in 5 years and a probability of 40% to complete in 20 years. X2 is statistically independent, i.e. if both companies select it, then the outcome for one company is independent of the outcome for the other. Moreover, if one company achieves the innovation before the other then it will enjoy the advantage of being a monopolist for some period of time and it will generate expected profit of £40bn. The other company gets nothing in this case. Finally, if the two companies complete the innovation at the same time, they will have to share the market and, due to price competition, each one will generate expected profit of £18bn.

a. Suppose that HealthLife select X

1. Assuming that both companies are risk-neutral, i.e. they evaluate their options on the basis of expected profits, which approach does Voltality prefer to take?  

b. Find what is the likely outcome of its patent race in terms of selected approaches from the two companies

 c. Suppose that the two companies also compete in a different patent race, which is fully probabilistic and there is only one available methodology. HealthLife invests ???????????? and Voltality invests ???????? amount of money in the race. The winner gets a market worth of £100 bn and the loser gets nothing. The probability that each company has to win the patent race depends on the investment of both companies and it is given by:

 ???? ????????????????(????????????????????????????????????? ????????????) = ???? ???????? , +???? ???????? ???? ????????????????(???????????????????????????????????? ????????????) = ???? ???????? ???????? +???????? Find how much the two companies will invest in this patent race, their chances of winning it, and their expected profit from participating in this patent race.

PART C (30 points in total)

Please pick and answer only ONE out of the two questions below. If you answer more than one question, then the first question that appears in your answer-book will count to your score.

 11.

a. With the use of an example, briefly explain the main difference between the ex-ante and the ex-post opportunity cost of capital. Why does this matter for the evaluation of an investment decision? (15 points)

b. In what ways can managers utilise the distinction between ex-ante and ex-post opportunity cost of capital when deciding on the firm’s strategy

12.

a. Briefly describe the managerial support framework for vertical integration and explain its usefulness for managerial decisions.  

b. How can it assist managers in setting-up and sustaining their strategic positioning?  

 

Dot Image
Tutorials for this Question

Part A,B,C - Pulsar Plc is considering of exporting its products

Tutorial # 00636431
Posted On: 08/06/2022 03:26 AM
Feedback Score: Not rated yet!
Purchased By: 2
Getsolution
Posted By:
Questions:
1328
Tutorials:
1327
Feedback Score:
Report this Tutorial as Inappropriate
Tutorial Preview
The solution of Part A,B,C - Pulsar Plc is considering of exporting its products...
Attachments
Part_A,B,C_-_Pulsar_Plc_is_considering_of_exporting_its_products.ZIP (18.96 KB)

Great! We have found the solution of this question!

Related Questions
Consider the U.S. Supreme Court's decision in Ewing v. California
Consider the U.S. Supreme Court's decision in Ewing v. California. Do you agree that the individual states should have the power to enact a sentence scheme like California's? Was the court wro …
Texas is notorious for passing laws that restrict voter participation
ARBRadio Federal Government of USA Policy MCQ Questions QUESTION 1 1.Texas is notorious for passing laws that restrict voter participation. In 2011, Texas passed a strict photo identification la …
Duty of Care Comparative Common Law Analysis
Cal Poly Pomona Duty of Care Comparative Common Law Analysis Paper This is an individual assignment. The class is broken down into “Groups” depending on the first initial of your LAST n …
How Australian Courts Investigates and Punishes
California How Australian Courts Investigates and Punishes Sedition HW Begin to research and write a two-page analytical essay in which you identify and explain how your Country X defines and punis …
Which group was granted US citizenship in 1917 when the US passed
QUESTION 1 1. Which group was granted US citizenship in 1917 when the US passed the Jones Act? a. Alaskans b. Hawaiians c. African Americans d. Puerto Ricans QUESTION 2 1. "We the People of …
Business Law IRAC - Florence and Michael were
Business Law IRAC assignment about 2 pages long Writing Assignment   This REPLACES the IRAC for Chapter 38 listed in the syllabus. You do not need to submit that IRAC for next week. IRAC fo …
A young man sees a new pair of shoes on TV and wants them
-Please address the following SCENARIOS with as much detail as possible using CRIMINOLOGICAL THEORIES that we have learned about this semester. What I am looking for you to do is plug in specific t …
Mike Martin is driving a 2010 Volvo north on Interstate 55 in
memorandum on interview questions Mike Martin is driving a 2010 Volvo north on Interstate 55 in your state. He slows down to avoid some debris on the roadway and is rear-ended by Jennie Armstrong w …
Police deviance and accountability
Police deviance and accountability Reflection Paper Instructions    Choose a topic mentioned in any of the text book and provide an analysis on it. You have free reign on this top …
Strain Theory Discussion - Using what you have
Strain Theory Discussion Question 1. Title: You be the judge Using what you have learned about Strain Theory this week, justify your sanction. If you are going to stick with …
Recent Questions
Social Issue The Social Concepts Report  
Weatherford College the Social Concepts Report Social Issue The Social Concepts Report   The Social Concepts Report is to consist of a cover sheet; a body of four or more double-spaced …
Trump Impeachment - Research a political issue
Central Piedmont Community College Trump Impeachment Research Research a political issue from at least two different reputable news sources and compare and contrast how the different sources covere …
Why is it important to look at social life from the different
Coastline Community College Poisoned Water Video Investigation Consider levels of analysis, the sociological perspective, and the sociological imagination from Module 1. View: https://www.p …
Social Work Discussion - Photovoice is a method used to visually
Complete Social Work Discussion Photovoice is a method used to visually represent a concept or idea. When you use the method of photovoice to explain a phenomena, idea, or circumstance, you think a …
Discussion 1,2,3 - Human Resource Information Systems
Discussion 1: Human Resource Information Systems (HRIS) Part A (Chapter 1) 1. Explain how human resource management and human resource information systems evolve over time. 2. Review the t …
Culturally competent practice with Hispanic
Culturally competent practice with Hispanic What strategies will you use to intentionally prepare for culturally competent practice with Hispanic children and families? If you have limited acces …
Domestic Partnership Discussion - Ch. 10 focused on employee benefits
Troy University Domestic Partnership Discussion This week, Ch. 10 focused on employee benefits and services. One area of the chapter specifically focused on domestic partner benefits. This is a uni …
Demographic and Epidemiological Assessment
Demographic and Epidemiological Assessment For this discussion, you will collect assessment data about your city or county. This post will include information about demographics (general characteri …
NR519 Discussions Latest 2022 August (Full)
NR519 Advanced Nursing Practice Across the Health Continuum Module 1 Discussion The social determinants of health play an important role in shaping the health and well-being of individuals acros …
NR519 Module 8 Discussion Latest 2022 August
NR519 Advanced Nursing Practice Across the Health Continuum Module 8 Discussion MSN-prepared nurses are uniquely positioned to lead holistic nursing care across a variety of healthcare delivery …
Loading...