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Question 1: What are the highest and lowest payments from the writer that the beekeeper-farmer team will accept for the sixth day? Assuming that the farmer can dispose of $7 from the writer as she wishes, what range of payments will the beekeeper accept? Assuming that the beekeeper gets that amount, what range of payments will the farmer accept? Answer the same questions for the fifth day.
Question 2: Some fields have large enough quantities of both oil and natural gas that coordination must be achieved for the production of both, rather than oil alone as in our examples. Will fields with both oil and gas have greater difficulties in unitization than fields with oil or gas alone?
Question 3: Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees? In many smaller cities all McDonald's outlets are owned by the same franchisee. Why is (or isn't) this fact consistent with our discussion of specific investments?
Question 4: Every so often, a disgruntled college graduate sues her school on grounds that her tuition payments did not land her the good job she was expecting when she started there. Courts invariably throw out cases like hers. They are, however, willing to entertain suits against trade schools (those that teach skills such as welding and computer repair) by graduates who make the same claims about inability to qualify for jobs that use the skills they learned in them. Why the difference?
What is average productivity? What is marginal productivity? Explain the relationship between average and marginal productivity. What would happen to average and marginal productivity if a technological innovation were introduced to the production..
In the competitive market, the market demand is Qd=48 - 5p and the market supply is Qs = 7P. The equilibrium price is4
Angelica pickles manager a Quick copy franchise White Plains, New York. Pickles projects reducing copy 5¢ to 4¢ each, Quick Copy's $600-per-week profit contribution will increase by one-third.
Suppose the price of c increases to 2, while income remains constant and what happens to the consumption of c and h? Are c and h substitute goods, complementary goods, or neither?
John Adams wrote in 1814, "Democracy never lasts long. It soon wastes, exhausts and murders itself. There never was a democracy yet that did not commit suicide."
What is firm's cost of capital at the various combinations of debt and equity? What is the firm's optimal capital structure? Construct a balance sheet showing that combination of debt and equity financing.
You're the marketing manager of a firm that produces Titanium and sells this metal to two distinct kinds of customers: aircraft producers and golf club manufacturers.
Many airline routes worldwide are served by only one airline (a monopoly). Within the U.S., these are often from a small or mid-sized city to a major carrier hub and frequently operated by a regional carrier under contract to the larger airline.
What level of output should this firm produce in order to maximize profit or minimize losses - and how many firms in total will there be in this market?
Given the mixed messages of the CEO's speech and the home office corporate culture, does the company produce managers or leaders? Show your work using game theory.
Describe the impact of the recent economic crisis in the U.S. on the automobile industry, with special reference to the operating costs and auto sales in the industry.
Depict an isoquant map depicting a typical firm's use of two inputs - white and black labor. Label its slope. What would be the effect of an increase the price of black labor from $12 to $13 and a decrease in the price of white labor from $13 to $12..
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