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Question: Bill Jones's parents insisted that Bill buy himself a new sport shirt. Bill's father gave specific instructions, saying the shirt must be in "good taste," that is, neither too wildly colored nor too extreme in tailoring. Bill found three types of sport shirts in the local department store:
• Rather somber shirts that Bill's father would want him to buy
• Good-looking shirts that appealed to Bill
• Weird shirts that were even too much for Bill He wanted a good-looking shirt but wondered how to convince his father to let him keep it. The clerk suggested that Bill take home two shirts for his father to see and return the one he did not like. Bill selected a good-looking blue shirt he liked, and also a weird lavender shirt. His father took one look and insisted that Bill keep the blue shirt and return the lavender one. Bill did as his father instructed. What was the key decision in this decision process, and who made it?
Management is often faced with the alternative of continuing to make a product or component internally, or going to an external source and purchasing the product or component. In gathering relevant information for these two alternatives, briefly i..
How does monopolistic competition within a firm reflect the circular flow? How would you explain the major features of monopolistic competition compared to pure competition and pure monopoly?
If piece rates elicit more effort from workers, why do firms not use this method of compensation more often?
Suppose you are CEO of a manufacturing company, and oil prices suddenly double, which boosts the inflation rate by 5%.
The Haas Corporation's executive vice president circulates a memo to the firm's top management in which he argues for a reduction in the price of the firm's product. He says such a price cut will increase the firm's sales and profits.
The CEO of your firm wants to undertake a new green initiative to reduce the company’s carbon footprint. Discuss the circumstances under which the initiative is a violation of the principle-agent problem and the circumstances under which it is not su..
In an effort to move the economy out of a recession, the federal government would engage in expansionary economic policies. Describe the actions the government would take in conducting expansionary fiscal policy and expansionary monetary policy.
You have won the lottery. There are two ways which you can receive your prize. You can either have 1 million in cash now, or you can have 1.2 million that is paid out as follows: $300,000 now, $300,000 in one year's time, $300,000 in two years' ..
Consider an industry with demand q = 120 - 3p and supply q = 2p - 10. Suppose that production is polluting the environment and that the marginal social cost.
How do regional trade agreements affect labor, financial and intellectual capital mobility? In what ways do they cause trade diversion versus trade expansion
Do the determinants of private demand affect market demand?
If the AS curve were more steeply sloped, how would the economy respond differently to aggregate demand shocks (shocks to a)?
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