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1. Most of the McDonald's restaurants in the Rochester area are owned by one individual.
Discuss why this ownership pattern makes economic sense.
2. You are at a cocktail party, where you meet the CEO of a pharmaceutical company who has been thinking recently about her overseas distributors who have exclusive sales territories. She can't quite figure out what is troubling her, but she is dissatisfied with these distributors. You describe the "double markup" problem. The CEO's eyes light up. "You are exactly right," she says. "The distributors are setting prices for our product that are too high." A year passes. You meet the CEO at another party. She heads straight for you and says, You were wrong. There was no double markup problem. After our talk a year ago, I terminated the contracts with all our overseas distributors. I sent our own people over- seas to set up in-house distributors. To motivate the region managers I tied a big part of their compensation to the profitability of their regions. I was sure I would see a big change, but overseas prices are just about the same as they were when we used exclusive distributors. I guess prices weren't that bad with the distributors.
Do you think the CEO's conclusions are correct? Why or why not?
q1 write a note on managerial decision-making under perfect information risk uncertainty.q2 show that the price effect
One thousand bonds were issued five years ago at a coupon rate of 10%. They had 25-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 40%
A company has the following short run demand and cost schedule for a particular product; Estimate the firm's profit-maximizing Quantity, Price, and economic profits or losses.
From the E-Activity, if you were a manager in a tobacco company, analyze the elasticity of demand for tobacco products. Evaluate the factors involved in making decisions about pricing tobacco products indicating which would be the most influential.
1.A country's central bank (e.g. the Bank of England or the US Federal Reserve Bank) has a key role in ensuring the stability of the banking system.
What type of agency problem is involved here - why would Marriott worry about the quality of hotels it doesn't own but franchises and identify firms that periodically shut down their operations. What are the conditions that exist when they shut down..
Poorly performing employees in Japanese firms are sometimes punished. Discuss the effects that such a penalty will have on the leadership effectiveness of the punished employees.
Given most common goods, will a new specific tax on the purchase and use of the good increase or decrease its equilibrium quantity? Will consumers benefit or lose? Will producers of the product benefit or lose?
1.Assume that there are several chemical firms in an industry,
The Last Outpost is a tourist stop in a western resort community. Kerry Yost, owner of shop, sells hand woven blankets for an average price of 30 dollar per blanket.
Statistically significant in explaining variations in the average operating expense ratio - what type of cost-output relationship (e.g., Linear, quadratic or cubic) is sugg ested by these statistical results?
From the second e-Activity, assess the marketing and pricing strategies, for example rebates, to determine the goal(s) of the marketing and pricing strategies for one of the companies you researched
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