Develop long-run strategies to increase firm value

Assignment Help Microeconomics
Reference no: EM132184004

Question: The 2 discussion answer(s) must be a minimum of 125 words of substance each with any references cited in APA format. No copying and pasting of work previously done for someone else.

Discussion: Intel made large loyalty payments to HP in exchange for HP buying most of their chips from Intel instead of rival AMD. AMD sued Intel under the antitrust laws, and Intel settled the case by paying $1.25 billion to AMD.

• What incentive conflict was being controlled by these loyalty payments?

• What advice did Intel ignore when they adopted this practice?

• Why did they ignore it?

Discussion: We have really covered a lot of subjects. We would love to hear what your take away is:

• for those things you think you will use the most;

• what you found most interesting; and

• what you never knew before.

Looking back here is the list:

1. Use the rational-actor paradigm, identify problems, and then fix them.

2. Use benefit-cost analysis to evaluate decisions.

3. Use marginal analysis to make extent (how much) decisions.

4. Make profitable investment and shut-down decisions.

5. Set optimal prices and price discriminate.

6. Predict industry-level changes using demand and supply analysis.

7. Understand the long-run forces that erode profitability.

8. Develop long-run strategies to increase firm value.

9. Predict how your own actions will influence other people's actions.

10. Bargain effectively.

11. Make decisions in uncertain environments.

12. Solve the problems caused by moral hazard and adverse selection.

13. Motivate employees to work in the firm's best interests.

14. Motivate divisions to work in the best interests of the parent company.

15. Manage vertical relationships with upstream suppliers or downstream customers.

Reference no: EM132184004

Concerning the partial equilibrium effects of congestion tax

Assuming the revenue from a congestion tax is not redistributed to city residents, what effect would a congestion tax have on the residential bid rent curve? If the government

Calculate kalvin''s expected haul over the four event

Calculate Kalvin's expected haul over the four event crime spree and calculate the probability that Kalvin will never get caught over the four days.

What economic theory states and predicts about the issue

Discuss the model or economic theory that relates to the issue presented in the news article. Discuss what economic theory states and predicts about the issue presented in the

Economic phenomena for which the linear-in-parameters

Identify and discuss at least two economic phenomena for which the linear-in-parameters/linear-in-variables regression model may not be appropriate (besides any mentioned in t

Firm manufactures and sells high quality business priters

A firm manufactures and sells high quality business priters and ink toners. Each printer sells for $650 and each toner for $100. The average user keeps the priter for 5 years

What is cost in todays dollars to manufacture new centrifuge

Hansong Electric manufactured a nuclear centrifuge that produced 1500 liters per hour of solution for $40,000 five years ago when the cost index was 120. Today the cost index

What is the slope of the price line at which trade occurs

A monopsonist buys labor for less than the competi- tive wage. What type of inefficiency will this use of monopsony power cause? How would your answerWhich country has a com

Calculate the consumer surplus at the equilibrium price

Suppose that the demand curve (hundreds) for apples is given by Qd = 140 - 5P, where Qd is the number of pounds demanded per year and p is the price per pound. The supply of

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd