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1. Discuss the optimal method for procuring a modest number of standardized inputs that are sold by many firms in the marketplace. What are the promary advantages and disadvantages of using this method to acquire inputs? Give an example that uses this method of procurement.
2. Describe how a manager who derives satisfaction from both income and shirking allocates a 10-hour day between these activities when paid an annual, fixed salary of $125,000. When this same manager is given an annual firxed salary of $125,000 and 3 percent of the firm's profits-amounting to $150,ooo per year-the manager chooses to work seven hours and shirks for three hours. Explain which of the compensation schemes the manager prefers.
3. Discuss the impact of the following factors on the optimal method of procurring an input.
a. Benefits from specializationb. Bureaucracy costsc. Opportunism on either side of the transactiond. Specialized investmentse. Unspecifiable eventsf. Bargaining costs
4. Last year, a 10-year contract between Boeing Commercial Airplane Group (BCAG) and Thyssen Inc.-a distributor of raw aluminum-expired. The contract, valued at $300 million when intially signed, stemmed from Boeing's desire in late 1990s to reduce production bottlenecks resulting from supply shortages. Declines in the demand for commercial aircraft during the past decade led some analysts to challenge BCAG's wisdom in signing such a long-term contract. Do you share this view? Explain.
Consider a 2-company Cournot model. Let ci (i=1,2) denote firm i's cost per unit of output produced, and suppose that c1 > c2 .
Use Internet, and other sources of literature and locate an article concerning trends in consumption patterns.
could you have both a comparative and absolute advantage in trading. If so, what if at all would be the benefit for your country to trade with any other country.
Illustrate what is the difference among nominal and real quantities and why make the distinction.
Describe how globalization impacts the capital budgeting decisions of multinational firms? Be sure to carefully explain your reasoning.
What is your opinion and will you support another stimulus package? Why or why not?
Explain the effect of such a shock on the equilibrium of the DAD-DAS model - Suppose that at time t-1 inflation is zero and there were no shocks in the economy.
Compute the marginal cost and marginal revenue of each unit of output and enter these figures in the table.
Illustrate what performance percentage would you use to trigger executive bonuses for that year. Explain why. What issues would arise with the hiring and retaining the best managers.
Calculate the book price and quantity effects of the local 8% sales tax. With perfectly elastic demand, who pays the economic burden of such a tax?
If the Inflation rate were to accelerate the economy would be flourishing as there is a need for more people to do the work.
Comment on the development. particular around and after the financial crisis of 2007-2009.Request:Please when you answer the questioncomment on the financial crisis impact on gdp using macroeconomic theories. it should not just be a superficial de..
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