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A college has a small discipline problem. Students frequently discharge the water-filled fire extinguishers for fun. Obviously, it is a safety hazard when fire extinguishers are empty. The college's punishment is a $400 fine. Despite this draconian punishment (given college student budgets), the problem continues. One member of the student discipline committee suggest reducing the fine to $25. This idea is adopted. The incidence of frivolous emptying of fire extinguishers on campus drops quickly (with no accompanying rise in arson-to justify emptying a fire extinguisher). Can you explain what might have happened? Discuss the implications for Becker's model in which a low probability of apprehension is optimal.
Discuss the importance of sales strategies and give examples of some typical strategies that might be pursued. Indicate why it is important for the sales manager to determine effective strategies for his or her sales force.
At what level must be a ceiling price imposed upon the monopolist's market to cause the monopolist to supply the efficient quantity supplied?
Suppose a firm uses both labor L and capital K as inputs to production. Its production function is of the Cobb-Douglas form, i.e. F (K,L) = K^1/3 L^2/ 3. Express the firm’s real revenues, real costs and real profits in terms of the variables defined ..
John Livingston is looking into the possibility of buying several coin-operated vending machines also placing them in the local hospitals.
Illustrate what salary would be required for the soldiers to be as well off as with the allowance.
Ole Harry is the skipper of the Better Late Than Never, a VERY slow freighter that runs from Singapore to Los Angeles and back without making any other stops. The boredom of the voyage results in high worker turnover. What can Ole Harry do to screen ..
The Influences of Culture and Gender on Negotiations. Discuss the following statements. Assume the role of one of the five parties in the GLOBE Project Study case as you form your answers: Explain why in Cross-Cultural Negotiations, the heuristic of ..
A 2,000 square foot house in New Jersey costs $1,725 each winter to heat with its existing oil-burning furnace. For an investment of $5,000, a natural gas furnace can be installed, and the winer heating bill is estimated to be $1,000. If the homeowne..
Stable and predictable prices seem to be valued by retail customers, especially for items that enjoy a high degree of repeat sales. Show that Wal-Mart will sell more than 1000 of the smaller cartons of ice cream if the price elasticity of demand for ..
If the firm is producing at a quantity of output where marginal revenue exceeds marginal cost, then,
Suppose a firm's demand curve is given by P = 120 - 0.5Q. Find the (value of) price elasticity of demand (point elasticity) for the demand curve when the price is $100. Is demand elastic or inelastic?
What are the advantages and disadvantages of fixed versus floating exchange rates?
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