POST TEST

ECONOMIC THEORY FOR MANAGERS

PROGRAM MAGISTER MANAJEMEN
1. Ujian ini bersifat individual dan open resources
2. Waktu Ujian adalah 17 Februari 2021 – 21 Februari 2021 (23.59 WIB)
3. Jawaban ujian dikirim dalam bentuk file PDF ke alamat email:
U.HERIQBALDI@GMAIL.COM

QUESTION 1 (MARK 25)

You are the manager of a midsized company that assembles personal computers. You purchase
most component-such as random access memory (RAM)-in a competitive market. Based on
your marketing research, consumers earning over $75,000 purchase 1.3 times more RAM than
consumers with lower incomes. One morning, you pick up a copy of The Wall Street Journal
and read an article indicating that a new technological breakthrough will permit manufacturers
to produce RAM at a lower cost. Based on this information, what can you expect to happen
to the price you pay for random access memory? Would your answer change if, in addition to
this technological breakthrough, the article indicated that consumer incomes are expected to
grow over the next two years as the economy pulls out of recession? Explain.

QUESTION 2 (MARK 25)

For the first time in two years, Big G (the cereal division of General Mills) raised cereal process
by 2 percent. If, as a result of this price increase, the volume of all cereal sold by Big G dropped
by 3 percent, what can you infer about the own price elasticity of demand for Big G cereal?
Can you predict whether revenues on sales of its Lucky Charms brand increased or decreased?
Explain

If Starbucks’s marketing department estimates the income elasticity of demand for coffee to
be 1.75, how will looming fears of a recession (expected to decrease consumers’ incomes by 4
percent over the next year) impact the quantity of coffee Starbucks expects to sell?

QUESTION 3 (MARK 25)

When the first Pizza Hut opened its door back in 1958, it offered consumers one style of pizza:
its Original Thin Crust Pizza. Since its modest beginnings, Pizza Hut has established itself as
the leader of the $25 billion pizza industry. Today, Pizza Hut offers five styles of pizza,
including the Original Thin Crust Pizza, Pan Pizza, and its Hand-Tossed Style. Explain why
Pizza Hut has expanded its offerings of pizza over the past decades, and discuss the long-run
profitability of such a strategy.

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QUESTION 4 (MARK 25)
According to the Cahner’s In-Stat Group, the number of worldwide wireless phone
subscribers will soon reach the 1 billion mark. In the United States alone, the number of
wireless subscribers is projected to grow by almost 17 million subscribers per year for the next
five years. Contributing to the extensive growth are lower prices, larger geographic coverage,
prepaid services, and internet enabled phones. While the actual cost of a basic wireless phone
is about $75, most wireless carriers offer their customers a “free” phone with a one-year
wireless service agreement. Is this pricing strategy rational? Explain.