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Coach Steroid likes his players to be big, fast, and obedient. If player A is better than player B in two of these three characteristics, then Coach Steroid prefers A to B, but if B is better than A in two of these three characteristics, then Steroid prefers B to A. Otherwise, Steroid is indifferent between them. Wilbur Westinghouse weighs 340 pounds, runs very slowly, and is fairly obedient. Harold Hotpoint weighs 240 pounds, runs very fast, and is very disobedient. Jerry Jacuzzi weighs 150 pounds, runs at average speed, and is extremely obedient. Does Steroid prefer Westinghouse or Hotpoint?
Does Steroid prefer Hotpoint or Jacuzzi? Does Steroid prefer Westinghouse or Jacuzzi?
Will Steroid have any problem choosing one player out of the three? Why/Why not? What property is violated?
What microenvironment factors have affected Sony’s performance since 2000? What macro environmental factors have affected Sony’s performance during that period? What stands in the way of Sony’s success today?
Conclude how the abatement levels should be reallocated across the 2 industries to minimize costs.
Joe and Rebecca are small-town ready-mix concrete duopolists. The market demand function is Qd = 10,000 – 100P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $25 per cubic yar..
President Alcazar announced an increase in the labor subsidy given to firms to try to boost employment and GDP. The subsidies received by a firm are in proportion to the number of workers it employs, that is equal to s N, where s is the subsidy rate ..
Illustrate what potential conflicts of interest could arise in a management buyout in which the investment bank is also likely to be an investor.
If there is a permanent adverse supply shock
An energy manager expects a need for a boiler that costs $150,000 in about seven years. How much money should the manager save each year to have enough money for the purchase in seven years time if the interest rate is (a) 10% and (b) 3%.
Under the first plan he pays $0.25 per minute of connect time. Under the second plan, he pays a lump sum of $30 per month and only $0.10 per minute of connect time. Determine David's optimal consumption bundle and his choice between the two plans.
The price elasticity of demand for Pete's chocolate chip cookies is 1.5. Pete wants to increase his total revenue. Would you recommend that Pete raise his cost or lower his cost of cookies. Explain your answer.
What is the role of developed countries in promoting development policies in developing countries?
A stock's price is $100 at the beginning of a year. There is a 25 percent chance that the price will be $90 at the end of the year, and a 75 percent chance that the price will be $130 at the end of the year. The stock will pay a dividend of $10 durin..
What is a recessionary gap? What are effects of this gap on the price level, real output, and unemployment? Explain
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