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1. Suppose your company's method of making decisions under risk is "making the best out of the worst possible outcome." What rule would you be forced to follow?
2. "A portfolio manager needs to pick winners-assets or securities with high expected returns and low risk." What is wrong with this statement?
3. Do you favor anti-gouging laws as a means of protecting consumers from high prices following natural disasters, such as Hurricane Katrina in New Orleans? If so, why? If not, why not?
4. How does a price ceiling undermine the rationing function of market-determined prices? How could rationing coupons insure that consumers with the highest values get the limited amount of a good supplied when government prices ceilings create shortages?
Suppose ZCorp has following short run production function Q = 50X - 2X^2 where X is the only variable input used by ZCorp to product its product, Q.
List three characteristics of an economists, a scientist and thee characteristics of an economist as a policy adviser.
If a firm making losses goes out of business, is this bad? Why or why not?
Determine what will the sustainability movement look like over next twenty years? What issues do you expect to take center stage? How will business respond?
Merriwell Company has a virtual monopoly in ultra high speed computer market. Merriwell has recently introduced a new computer that will be used through satellite installations around the world.
Explain whether the firm will make economic profit, In the short run and In the long run.
How would you estimate the additional dollar cost of each additional salesperson? Based on your company's past sales experience
Suppose you are contemplating an investment project that has 2-phases. As currently planned, 1st phase of the project needs an investment of $100,000 today.
Dale is planning an expansion of his present facilities to accomodate additional bussiness. His current income statement is as follows:
How does a price ceiling undermine the rationing function of market-determined prices?
Suppose you have a machine tool manufacturing company that produces one standardized type of tool. Your total costs change as demonstrate in the table below:
How will government regulation impact decision making and will the community's makeup be a consideration for decision makers?
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