About the potential benefits and cost of diversification

Assignment Help Business Economics

Reference no: EM13732872

Q1. Economists argue about the potential benefits and cost of diversification. For example while diversification can certainly help company to promote new products at the same time through the merger of two firms it can be more expansive to develop communication, information and operating system. Prove that under certain circumstances diversification can still create a real value?

Q2. In accordance with economic theory, the individuals are always trying to maximize their own utilities. Thus far the owners are likely to be interested in maximization their own profits, while the managers and other workers do not share this goal necessarily. Discuss the sources of conflicts between the owners and the managers of the firms?

Reference no: EM13732872

Questions Cloud

Explain what type of externality it is : Think of an externality in your community. Explain what type of externality it is. How can it be resolved (through the market and/or through government policies)?"

Divided onto fixed and variable costs : Total cost of the production, as you already know is divided onto fixed and variable costs. Analyze different parts of the total cost (real life examples) and make your own conclusion, dividing them onto two main groups on one side those that belong ..

Strong incentives to maximize the firm value : Sometimes managers do not have strong incentives to maximize the firm value. At the same time development of the control systems can be both difficult and expensive.

Describe each of the three consistency theories : Describe each of the three consistency theories. How do they differ? • Describe how your beliefs influence your behavior. Give an example.

About the potential benefits and cost of diversification : Economists argue about the potential benefits and cost of diversification. For example while diversification can certainly help company to promote new products at the same time through the merger of two firms it can be more expansive to develop commu..

Define opportunity cost of getting your degree by analyzing : Define the opportunity cost of getting your degree by analyzing what steps and economic factors a potential student must make when choosing to pursue an education. Given your answer, is getting a formal college education worth your opportunity costs?..

Utility maximization considering consumer behavior : Discuss the approach of utility maximization considering consumer behavior. Do you know the examples that confirm this theoretical point of view? Emphasizing how knowledge of the theory an contribute to the better understanding of life situations peo..

How do these problems impact the organization : a. Why do these problems exist? Present the background on these problems.b. How do these problems impact the organization?c. Who is responsible for these problems?

What would need to be done to implement the solution : 2. Identify potential solutions to those problems. Here, you can feel free to brainstorm and merely list various solutions to the problems that you identify.3. Choose a best solution for each problem. Explain why that solution is the best solution. I..

User Account

All Pages