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1. Why might you expect to see flat royalty payments in home-based franchises but revenue-based royalties in franchises that operate from commercial buildings? (Hint: Among the most popular home-based franchises are cleaning services offered to businesses, and delivery services for seniors who live at home.) a. Is your explanation consistent with the fact that franchised tutoring services often charge a fixed royalty per student enrolled?
2. A small-volume foreign auto maker limits the number of its franchised dealers in the United States and gives them exclusive territories. There are also non-dealers who have no official connection with the manufacturer. They buy its cars overseas and sell them in the United States, a phenomenon sometimes called a "gray market." If you are a manufacture do you necessarily want the gray market to cease to exist? Why or why not? How about if you are a franchised dealer?
3. Most restaurant customers tip according to a percentage rule-between 15 and 25 percent of the bill. Diners who have dinner and a $20 bottle of wine usually pay the same percentage of the bottle price as diners who order a $100 bottle. Why, when the same efforts must be made to uncork and pour both bottles?
4. How does your analysis of VMP change if the employer is a monopolist producer of its output but a price-taker in the labor market?
5. Is it possible that elementary education produces a public good but higher education does not? Explain.
6. We said that an uncrowded country club golf course has aspects of a public good. Why? Is it still a public good if it becomes crowded and people's games are slowed down.
Assume that a new law stated that any person could print their own money. Determine what kind of changes would come about in daily commercial transactions as a result of such a law?
What is the Underground Economy? What effect, if any, does the Underground Economy have on the entire economy? Is it positive, negative, or has no effect?
Use the Porter's five forces framework to explain this pattern. Discuss possible profit-maximizing business strategies that artists, record companies, and retailers may wish to pursue.
farmers to lose fund since the demand for food is inelastic meaning the price refuse proportionally faster than increase in quantity sold.
Developing countries in the "Global South" turned to socialism in the past as a means to solve their economic problems.
The impact of a decrease in the price of memory chips on the market for computers and impact of the government imposing a price ceiling on apartment rents
Each class member shall prepare a written report concerning the performance of a company of their choice and based upon observation period, offer forecast of companies' future sales and revenue
When international hostilities increase, the United States government will sometime use trade sanctions instead of military action.
Understanding of the elasticity of demand to dispute this claim, assuming that cigarettes have a very inelastic demand. Illustrate with a graph.
Demand for a managerial economics text is given by Q=20,000-300P. The book is initially priced at $30.00. Write the demand equation for which the price elasticity of demand is zero for all prices.
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units.
What topic or topics of interest have you found at the Markkula Center and can you apply one, two or all three moral theories to the cases?
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