Reference no: EM133594815

Discussion Post: Managerial Economics

Question I. A newspaper article mentions that two of South Korea's largest semiconductor manufacturers, - Samsung Electronics Company and Hynix Semiconductor - would suspend all their memory chip production for some time. The article goes on to say that another large semiconductor manufacturer was likely to follow suit. Collectively, these chip manufacturers produce about 30 percent of the world's basic semiconductor chips. Based on this information, how is the market for computers altered? Explain in detail. (600 words)

Question II. There is increasing scientific evidence that climate change caused by human actions has substantially impacted surface temperatures on Earth. However, what is unclear is the tools available to managers and policymakers to reduce carbon emissions. Greenhouse gas emissions come from a large number of sources such as power plants, and factories to automobiles all around the world. Therefore,the number of pollution sources that need to be controlled is enormous. Additionally, countries often balk at the enormous price of curtailing their emissions. To address some of these challenges, the European Union adopted a cap-and-trade system to reduce their emissions. As an economic advisor and consultant to the European Union, your opinion has been sought on the cap-and-trade system and whether it is beneficial in reducing carbon emissions. Using the tools of managerial economics, analyse the cap-and trade system and comment on the ability of this policy to reduce carbon emissions. Does a cap-and-trade system benefit a firm and the government? (600 words)