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Imagine you are the director of global business development for a large Swedish engineering company that wants to win a contract to build roads in Kenya, a project funded by the World Bank. You need to develop a relationship with the Ministry of Transportation in Kenya. Using what you learned in this course, discuss how you would handle a situation in which your firm wants to win the contract but has been directly asked for a bribe by a local official in charge of the decision making. Imagine that your competitors are from other countries, some of which are less concerned about the ethics of gift giving. Given what you have read in this course, how can you still win business in such a situation? What would you advise your senior management?
Which of the following is probably the best example of a sunk cost? If average total cost is equal to marginal cost. Joseph can initially produce 10 pizzas or 5 cakes. After some training from a pizza-making expert, his opportunity cost of making (a)..
Illustrate what if accidents costs decrease with precaution. Explain how does this affect efficient level of precaution. Explain.
The last printer added 20 books to total output, while the last press added 1,000 books to total output. Is the publishing house making the optimal input choice.
Why was the Reform Bill of 1832 a political landmark? A It increased the number of male voters by about fifty percent and set a precedent for widening suffrage further B It granted a powerful voice to the numerically superior but materially poorer so..
A stock is paying a dividend of $3.10 annually and has an expected rate of return of 7%. You expect the dividend to grow at a rate of 2% for the indefinite future. What price should the stock sell for?
What is the Federal Reserve and why does it exist in our economy? What is Monetary Policy and how does it make adjustments to inflation problems? What was QE (Quantitative Easing) and why did the FED instigate Quantitative Easing? What was the outcom..
The total utility for water is higher than the total utility for diamonds. You can explain the diamond-water paradox (that diamonds are expensive but not necessary for survival / not as useful, while water is inexpensive yet necessary for survival / ..
In the auction described above, suppose that you could entice additional bidders to attend your auction. However, none of the new bidders would have a valuation greater than $3.0 million.
In March 2012, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $200 in March 2052, but investors would receive nothing until then. ..
By paying a higher-than-market wage, a firm can avoid the problem of:
Consider a city that has decided to impose a pollution tax on its polluting firms. How would wages and employment be affected? How does the result depend upon the elasticity of supply of labor with respect to environmental quality? The wage elasticit..
When a locality is required by federal law to do something, regardless of whether it receives federal funding for that purpose, this duty is called
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