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1. Evaluate the following statement: "Business is war. Never consort with the enemy."
2. The Long-Drive Golf Company manufactures a new line of golf clubs. The Cushion Bag Company makes a special golf bag that protects the delicate shafts on these clubs. The re- spective prices are Pc and Pb for the clubs and bags. The marginal cost for producing either product is 100. Demand for each product is Q = 1,000 - (Pc + Pb) when Pc + Pb is 1,000 or less, 0, otherwise
How will the two companies price the products if they do not cooperate? What are the resulting quantities and profits? What are the prices, quantities, and profits if the two companies price cooperatively? Explain why there is a difference.
What type of agency problem is involved here and why would Marriott worry about the quality of hotels it doesn't own but franchises?
E-Commerce Management
Consider the four possible combinations and sketch them if necessary:
Matt Reiss have the Fredonia Barber Shop. He employs 5-barbers and pays each a base rate of $1,000 every month. One of the barbers serves as manager and receives an extra $500 every month.
1. What explanations can you give for the increase in both unemployment and inflation in the 1970s?
Analyze the challenges that companies face in entering global markets. Identify the potential impact to capital budgets in making the decision to move into a global market.
Pepsi manufactures Fritos and Lays potato chips in addition to its basic soft drink products. Discuss and explain potential ways that this business combination might increase value.
Which of the following examples is an adverse-selection problem and which is an incentive problem? Explain why. In each case, give one method that the restaurant might use to reduce the problem.
Estimate the price of a stock that has a one-period horizon, is expected to pay a dividend of $.20 per share for period,
You would like to know what the marginal costs and marginal benefits of this decision are. That should depend on factors like:
Two local ready mix cement manufacturers, Here and There, have combined demand given through Q = 105 - P. Their total expenses are given by TC = 5Q + 0.5Q2 and TC = 5Q + 0.5Q2.
Discuss why this ownership pattern makes economic sense. Do you think the CEO's conclusions are correct? Why or why not?
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