GROUP ASSIGNMENT COVER SHEET

STUDENT DETAILS
Student name: Đặng Quỳnh Anh Student ID number: 31201029104
Student name: Phạm Quỳnh Anh Student ID number: B1242016007
Student name: Nguyễn Thị Thanh Bình Student ID number: 31201028982
Student name: Hồ Phi Phụng Student ID number: B1242013031
Student name: Hồ Ngọc Tường Vi Student ID number: 31201028797
Student name: Phạm Nguyễn Khánh Vy Student ID number: 31201029217

UNIT AND TUTORIAL DETAILS

ME_S1(2021-
Unit name: Managerial Economics Unit number: 2022)DH46ISB-7
Tues 3:30 - 6:50PM
Tutorial/Lecture: Managerial Economics Class day and time: Fri 8:00 - 11:20AM
Lecturer or Tutor name: Mr. Phạm Tuấn Anh

ASSIGNMENT DETAILS
Title: CSA3 - Group 4 - ME_S1(2021-2022)DH46ISB-7
Length: 2 pages Due date: 29/10/2021 Date submitted: 28/10/2021

DECLARATION

I hold a copy of this assignment if the original is lost or damaged.

 I hereby certify that no part of this assignment or product has been copied from any other student’s work or from
any other source except where due acknowledgement is made in the assignment.
 I hereby certify that no part of this assignment or product has been submitted by me in another (previous or
current) assessment, except where appropriately referenced, and with prior permission from the Lecturer /
Tutor / Unit Coordinator for this unit.
 No part of the assignment/product has been written/ produced for me by any other person except where
collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned.
 I am aware that this work may be reproduced and submitted to plagiarism detection software programs for the
purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism
checking).

Student’s signature: Đặng Quỳnh Anh

Student’s signature: Phạm Quỳnh Anh
Student’s signature: Nguyễn Thị Thanh Bình
Student’s signature: Hồ Phi Phụng
Student’s signature: Hồ Ngọc Tường Vi
Student’s signature: Phạm Nguyễn Khánh Vy

Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has not been
signed.

1
 CSA 3: Time Warner Cable
Discuss Memo 1 (p. 485) with your team, the data for this Memo can be found
on elearning.
1. If we lower the price, do you think this is likely to lead to higher revenue
2. How much potential revenue can we generate and how low should we
go with our price?

2
 35.000
Number of Subscribers (Thousands)
30.000

25.000 f(x) = − 2.46 x + 39.06

R² = 0.9
20.000

15.000

10.000

5.000

-
$4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00
Price

Q: Numbers of Subscribers
P: Price
We have P= 9.75
Q = -2.461P + 39.057 -> Q = -2.461*9.75 + 39.057
-> Q' = -2.461 -> Q = 15.06225

1) |E| = dQ/dP * P/Q

-> = -2.461 * (9.75/15.06225)
-> |E| = -1.593 -> 1.593 -> elastic
-> If we lower the price, it will lead to a higher revenue

2) C1: To maximize profit -> elasticity = 1

-> |E| = |dQ/dP * P/Q| = 1
-> |-2.461 * P / (-2.461P + 39.057) | =1
-> P = 7.935
-> Q = 19.528
-> R = 154.95468
C2: Marginal rev = 0
 Elastic = -1

3
Calculate total rev = price x demand

Peer Evaluation Form

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