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It may seem as though basic static games are too simple to describe the strategic choices faced by modern transnational firms. Yet simple normal-form games apply to the case studies presented in both of the textbooks. Present your observation of what many of these cases have in common. This is your rule category. Point out the cases that are exceptions, if any, and why you think they are different from the others. This is your exception category. In response to your classmates’ posts, explain what circumstances would have to change to move a case from the rule category to the exception category, or vice versa.
What would be the minimum expected return from a new capital investment project to satisfy the suppliers of the capital? Assume the applicable tax rate is 40%, interest on debt is 7%, flotation cost per share of preferred stock is $0.75, and flotatio..
Evaluate the organization’s current compensation philosophy and propose ways to enhance or revamp the current compensation philosophy to meet the changing needs of the organization and its employees.
Contrast the difference between temporary and permanent damages on the incentives of people to build new houses near the cement factory
A monopolist estimated that the own-price elasticity of demand for its product is -4.5 and its advertising elasticity of demand is 1.5. Assuming these elasticities are constant, what fraction of the firm's revenues should the firm "reinvest" in adver..
Economic history since the industrial revolution [in the United States] strongly suggests that technical learning, not the process of perfect competition, drives growth over time” explain why perfect competition is not conducive to innovation, i.e., ..
There is someone who we will refer to as B.B. who has just invented a wonderful new device for monitoring the effort level of employees. This device will take precise measurements of the effort of employees and the Department of Justice has certified..
A researcher has determined that a two-factor model is appropriate to determine the return on a stock. The factors are the percentage change in GNP and an interest rate. GNP is expected to grow by 4.5 percent, and the interest rate is expected to be ..
What is a voluntary export restraint, and why would a country seek to have an importing country agree to one? Is it more or less costly to enforce in comparison to a tariff or quota?
Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 6%. You hold the bond for five years before selling it. a. If the bond's yield to maturity is 6% when you sell it, what is the internal rate of return of your investment?
Many would argue that in a capitalistic economy, the government cannot provide goods and services as efficiently as the private sector. For example, most arguments for and against the Affordable Health Care Act centre on the efficiency of the governm..
Illustrate what new decisions will you make regarding production levels and pricing for your Widget facility.
Assume that the production of scissors is represented by q = 6*(K*L)1/2 . In the SR, K is fixed at 144. The rental rate (v) is 25, and the wage rate (w) is 10. What is the STC function in terms of q? Using your equation in part (a), what are the fix..
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