explain why profits are largest when mc=mr and describe how that works in monopolistic competition when the firm can choose the point on market demand where it wishes to operate

what are the activities under a fiscal policies.

Consider the “real” version of the ultimatum game, where Player 1 proposes a division of a sum of money x, then Player 2 decides whether or accept or reject it. If they accept, the division stands - if they reject, both players get nothing. Suppose both players treat money as utility.

(a) Draw this game using a game tree, being careful to list the payoffs and all elements of the tree.

(b) Solve the game for the unique SPNE.

(c) We assume that if Player 1 choose to keep all of x for themselves that Player 2 was awarded ∈ > 0. Does this matter? Explain how it changes the results (or not)?

(d) What are all of the strategies for Player 1? Player 2?

If the price of computers (manufactures) was to fall, would landowners or capital owners be better off? Explain. How would the decrease in the price of computers affect labor? Explain. (using specific factor model to explain)

d) As the procurement officer for NOPT, describe how the evaluation process would be done with particular reference to any five (5) factors that would be appropriate to consider as evaluation criteria.

under purchasing and supply chain management

Fill in the blanks in the table below.

1. In general, the marginal cost curve is U-shaped as you learned in lectures and the textbook. However, exception exists. Please provide one particular industry as an example to illustrate that MC is not U-shaped. Explain briefly the shape of MC in the industry. 2. Engineers at a national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of gasoline. They estimated that in mass production the car would cost $40,000 per unit to build. The engineers argued that Congress should force U.S. automakers to build this energy-efficient car. In your opinion, is energy efficiency the same thing as economic efficiency? Please explain your opinion and state whether you support it or not.

Explain Dupuit's theory of price discrimination. Is that theory still valid today. Have you ever been subject to price discrimination. Provide up to 3 specific examples.

1. The demand curve for a good is given by the equation P = 200 - 1/4 Q and the supply curve is given by the equation P = 50 + 1/2 Q, where P represents the price of the good (measured in dollars per unit) and Q represents the quantity of the good (measured in units per week).

If the government imposes a sales tax of $9 per unit on this good. Find the new formula for the demand curve, the change in equilibrium quantity, the post-tax price received by suppliers, and the post-tax price paid by buyers. Illustrate graphically as well.

The White Noise Corporation has estimated the following Cobb-Douglas production function using monthly observations for the past two years:

ln Q = 1.386 + 0.20 ln K  + 0.30 ln L + 0.25 ln N

where Q is the number of units of output, K is the number of units of capital, L is the number of units of labor, and N is the number of units of raw materials. With respect to the above results, answer the following questions when K = 400, L = 800 and N =200.  

a) Determine whether the returns to scale are increasing, decreasing or constant.

b) Suppose the price of capital is $5.25 per unit, the price of labor is $7, and the price of raw materials is $17.50 per unit.  This is an optimal combination of resources.

c) What price would the company have to charge for the product to maximize profit?

1.)

a. Explain the difference between the Long Run Aggregate Supply Curve (Potential Output) and the Short Run Aggregate Supply Curve.

b.  Explain what a recessionary gap is and how the economy self-corrects and returns to potential output.

c. Graph and explain demand pull inflation and Graph and explain cost push inflation.

A firm is considering purchasing a machine that costs
$55,000. It will be used for six years, and the salvage value at
that time is expected to be zero. The machine will save
$25,000 per year in labor, but it will incur $7,000 operating
and maintenance costs each year. The machine will be
depreciated according to six years straight line method. The
firm’s tax rate is 40% and its after-tax MARR is 15%. Should
the machine be bought?

1. What is the warranty of merchantability?

2. What is the warranty of fitness for a particular purpose?

3. What is a disclaimer?

4. What is the difference between personal property and real property?

5. What is abandonment?

6. What is a bailment?

Q4: What are the arguments for having corporate governance issues regulated at the federal rather then state level? Do you support these arguments?

The book is Strategic Corporate Social Responsibility chapter#5

The healthy spring water company sells 10-gallon bottles of water for water fountains. It sells 2000 bottles a day at a price of $20. The company’s daily revenues and costs are:

            Sales revenues             $40,000

            Variable costs             $16,000

            Fixed costs                  $20,000

Although the company grew rapidly in the past decade, sales have been rather stagnant in the last year. The problem is that the market for spring water has grown large enough that grocery stores have begun to carry it at prices below those of healthy spring.

The company is considering raising the price by 15% and repositioning its water as a premium brand. Healthy Spring believes that it will be able to keep most of its loyal customers with a price increase. How many units loss can Healthy Spring tolerate before the price increase would become unprofitable?