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You are the CEO of a manufacturing company. You manufacture a product and then offer it for sale to the general public. You recently have discovered that the product you manufacture is defective, and therefore, your product is harming people. You essentially have two options: 1) fix it, or 2) don't fix it. If you fix the problem, you will have to publicly announce the defect, provide corrective measures for customers who have already purchased the product, redesign the product to eliminate the defect, retool the assembly line to produce the redesigned product, and purchase damage control (positive marketing/media spin). If you do not fix the problem, then you will have to compensate any individuals who are injured by your product, and purchase damage control (positive marketing/media spin). Which alternative would you choose and why? What additional information would help you make the best decision?
Value Lodges owns an economy motel chain and is considering building a new 200-unit model. The cost to build is estimated at $8,000,000; estimates for motel furnishings will cost an additional $700,000 and will require replacement every 5 years. A..
Peter Minuit bought an island from the Manhattoes Indians in 1626 for $24 worth of beads and trinkets. The 1991 estimate of the value of the land on this island was $12 billion (1 billion = 109). What rate of return would the Indians have received ..
"Members of CORE said there are about 110,000 people waiting for an organ donation, but only about 25,000 transplants each year" (OVMC). Whether you agree with the concept or not, research the topic of organ donation, challenge the myths behind th..
Suppose further that investment spending is fixed at 100. Calculate the equilibrium level of GDP. Solve for equilibrium levels of Y, C, and S Next assume taxes were reduced by 20 to a level of 180.
Suppose the market for semiconductors in the U.S. is characterized by: Qd = 200 – 40P [Demand] Qs = 40+ 40P [Supply] The market for semiconductors in the rest of the world is characterized by: Qd = 160 – 40P [Demand] Qs = 80 + 40P [Supply] Suppose th..
The objective function measures profit, it is assumed that every piece stocked will be sold. constraint 2 measures time to set up the display in minutes. Constraints 3 and 4 are marketing restrictions.
Ball bearings cost $.05 each, and bubblegum costs $.20 each. Your enjoyment of the experiment will be characterized by the utility function U(B,G) = (B^.2) * (G^.8). If you have $10 to spend on this experiment, how many ball bearings will you buy
If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by what percentage would your real income increase and what would be the change if the nominal income rose by 2.8 percent
Dr. Izobel Stevens is physician at the Westbury HMO, a New York City based medical facility serving the poor and indigent. Stevens is estimating the cost effectiveness of a preventive maintenance event,
The annual operating and maintenance costs for the machine are $15,000 at the end of the first year and are expected to increase at an annual rate of 2.5% in constant dollars. The salvage value is given by the expression S= $95,000-$5,000t.
A bulldozer can be purchased for $380,000 and used for 6 years, when its salvage value is 15% of the first cost. Alternatively, it can be leased for $60,000 a year. Remember that lease payments occur at the start of the year.
Define inflation. Assume that you live in a simple economy in which only three goods are produced and traded: fish, fruit, and meat. Suppose that on January 1, 2007, fish sold for $2.50 per pound, meat was $3.00 per pound, and fruit was $1.50 per ..
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