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1. When thinking about the theory of the firm, shirking, and principle-agent problems, we can find analogous situations in our personal lives. Make a Power Point presentation (for sharing with the class) two personal situations to illuminate this concept. For example, how does your mom get you to do chores? Or how do you control for shirking by those group members with lower GPAs, who have less to lose from poor individual performance?
2. Find a newspaper or magazine article that highlights a perfectly competitive situation. Write a 1-page paper on the economic performance of this market in terms of efficiency, costs, and profit.
3. Applying the 21 Synectics Steps
Assignment: Select one problem from the following list -or- define your own problem.
Design new clothes for soldier/teacher/cook/student/etc. Invent a new way to protect computers from viruses.
How would government react to sudden, large changes in the price of a key commodity, such as gasoline, electricity, or prices on stocks on the New York Stock Exchange?
The first acre can produce 1000 bushels of wheat, the second acre 900, the third 800, and so on. How much revenue will each acre generate? what are the TR and MR for each acre?
Explain why the waiter will provide bad service and since you are interested in good service, can you convince the waiter, in a binding/credible manner that you will tip him?
Discuss the relationship between shoe brands P and N, and also the type of good that shoes P can be classified as and discuss the meaning of R-square and the t-value for the parameter estimate on the Pp and PN.
Compute the marginal profit function and what is the profit maximizing price, what is the market demand function and what is each firm's supply function?
How does industry-level price elasticity of demand shape the opportunities for making a profit in an industry? How does firm-level price elasticity of demand do it?
What employees are involved, what are their perceived inefficiencies, and how are they compensated and evaluated?
If interest rates or opportunity costs investment, happened to be the same in both developed countries and emerging economy nations, what could account for faster upward shifts in the latter group's planned investment functions Are stocks of produ..
What are the factors that affect pay differentials? How does each factor increase or decrease relative wages?
Identify an example in which a firm you are familiar with made a strategic decision that was focused on improving the organization's profitability. How did the market structure in which the firm competes affect the firm's decision-making?
Research in developing countries indicate that the incidence of child labor actually rose in some countries as incomes (and wages) of poor families increased. This is difficult to understand since many people assume that as incomes rose, the inci..
Consider the tax depreciation for a $1,000 investment using both the modified accelerated cost recovery system (MACRS) and the straight line depreciation accounting systems. Show that the MACRS system is more beneficial economically. Use a 5-year ..
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