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In the early 1990s, Chrysler Corporation placed nearly all decisions about the development of a new vehicle in the hands of a single, cross-functional product team. In contrast, General Motors used an approach that placed a stronger emphasis on functional specialties. Small teams were established that consisted of experts from the same functional field. Each team was charged with a particular assignment that related to its area of specialization. For example, one team might have had the primary responsibility for the design of the body of the vehicle, whereas another team might have been charged with developing the drive train. The teams worked simultaneously on their specific tasks. Some individuals on these teams also served on additional cross-functional areas.
Discuss the relative advantages and disadvantages of these two approaches to product development.
Consider the Bertrand model with no product differentiated in which each firm has a positive and fixed sunk cost F and zero marginal cost. What are the equilibrium prices and profits? Illustrate your result on a proper diagram.
Elucidate from a financial point of view why a firm might want to stay in business in the short run when total revenue is below total costsElucidate from a financial point of view why a firm might want to stay in business in the short run when tota..
What distinguishes money from other assets in the economy? What are demand deposits, and why should they be included in the stock of money?
For each of the following pairs of goods, would you expect the cross-elasticity of demand to be positive or negative? Large (in absolute value) or small? Defend your answers:
Explain why do economists believe that the CPI overstates the rate of inflation
Suppose the Fed does not change the money supply. According to the theory of liquidity preference, what happens to the interest rate? What happens to the aggregate demand.
The size of the worker force in a community these folks are gainfully employed What is the unemployment rate.
Elucidate the similarities and differences of the breakup of the AT&T/Bell System antitrust problems.
Think about a company that has been a state-owned, natural monopoly. If it is privatized, what kind of regulatory policies could the government follow, and what impact might they have on the firm.
Elucidate the difference among the statement "the money supply is fixed" and the statement "the money supply is exogenous".
Illustrate what factors shift your demand for goods . Give an example of how a demand determinant shifted your demand for a good.
Sherry was just rotated out as Microsoft's X-Box sales manager for the Canadian market. In Canada, the X-Box competes with Nintendo's GameCube.
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