Economics for Managers - Answers on Lego and Disney, Budget Line and Preferences

Running head: ECONOMICS FOR MANAGERS
Economics for managers
Name of the student
Name of the University
Author Note

1ECONOMICS FOR MANAGERS
Table of Contents
Answer 1:...................................................................................................................................2
Answer 2:...................................................................................................................................2
Answer 3:...................................................................................................................................5
References:.................................................................................................................................6

2ECONOMICS FOR MANAGERS
Answer 1:
Lego manufactures plastic toys, produced under the Lego Group. Some special products of
this company are mini-figures, interlocking plastic bricks and other parts of toys. On the other side,
Disney is a multinational entertainment and mass media conglomerate. The company has created
various animated characters like Miki Mouse and Mini Mouse for people of all age group (Hennig-
Thurau and Houston 2019). Thus, Lego and Disney are not competitors. Rather, Lego operates as the
partner of Disney, as it receives franchises to produce various Disney toys and games. The mission of
Disney is to the leading producers as well as providers of information and entertainment (Danciu
2016). Thus, it intends to attract boys and girls, aged between 4 years to 12 years. Moreover, teenage
children are also considered as the chief customers of this company. Lego also manufactures products
for the same range of customers.
Answer 2:
Adam’s budget line is:
50 = 2 * Apple + 1 * Banana
In this context, income of Adam is 50 while price of one unit apple is 2 and price of one unit
banana is 1 (Cherchye, Demuynck and De Rock 2014).