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Consider firm organization:
a. Briefly explain why corporations with sufficiently diffused ownership are typically governed by a board of directors and why this board typically includes members from outside of the corporation.
b. Identify the three sources of cost that vertical integration is intended to mitigate or remove. However, no firm is fully integrated, implying there is a cost to vertical integration. Identify this cost and briefly relate it to firm size and scope.
Your community has been chosen as the site of a new power plant that will be the source of electricity for the entire region. This power plant will be within a few blocks of your house, so you have been given the opportunity to help choose the type o..
Firms grant decision rights to teams of employees for all of the following reasons except to: Kevin Freeman is the head of a team developing plastic knee replacements. Each member of the team brings specialized knowledge to the innovation process. Wi..
How can queuing promote equity?
Suppose that people expect the Fed to hit its inflation target. A: Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run.
Suppose a student has 9 hours available to study Economics, Spanish and Psychology with an estimate of performance based on hours of study for upcoming exams. Graph the gain in scores for studying first, second, third…., ninth hour for studying a) Ec..
Discuss the pros and cons of the two “advanced” forms of estimating energy demand. What do they excel at and where are they lacking? How might policy changes be built into the models? Assume the following two equations for the extraction of a natural..
Suppose an economic agent has a utility function U = Ln (R). Assume R is the return on investment and utility is the natural log of investment. If the investment is highly successful then the agent earns $10000. Calculate the expected utility of the ..
In the classical theory of labor supply it was believed that the individual attempts to maximize what factor? He will attempt to reach a point of trade-off between what two factors? What two “effects” come into play in reaching this trade-off?
Consider your favorite Rock, Paper, Scissors game. Assume that Player 1 is not allowed to use Scissors. Construct the original 3-by-3 matrix of the game and eliminate all the forbidden and dominated actions.
Illustrate what relationship exists and how might a business manager use this information to increase their profits.
A grandfather decided to put some money in the bank for his granddaughter's education the day she was born. The interest in the bank is 6% per year. The grandfather expects his granddaughter to withdraw $20,000 each year on her own and 18th, 19th, 20..
What is the immediate impact of this transaction on the money supply? Explain. Suppose that the reserve requirement is 10 percent and banks voluntarily keep an additional 10 percent in excess reserves. Calculate the following: The maximum amount by w..
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