Respond to ONE of the following scenarios. Identify and discuss the relevant legal issues and discuss them fully. Specifically state what you think the outcome will be and why. In Questions #1, be sure to include the applicable general rule(s) as well as any exceptions and whether they apply.

1. Jim Bowie owns a lot in Starr County and wants to build a house according to a certain set of plans and specifications. He solicits bids from three building contractors as follows: George Kimbell bids $ 175,000; Green Jameson bids $170,000; and, Davy Crockett bids $ 166,000. Bowie accepts Crockett’s bid and construction begins. A month into the work, Crockett advises Bowie that due to an unexpected rise in fuel and materials costs, he will need $ 15,000 more to complete the project. Bowie raises a fuss, but after discussing the situation with the out-bid contractors who indicate that they cannot finish the contract for less, he agrees. When the house is finished, he refuses to pay the extra money. Discuss whether Bowie is legally required to pay the additional amount.

Post a brief summary on the effects of globalization on health in Russia. Discuss one change in quality of life in post-transition Russia. Also, explain one change in mortality in post-transition Russia. Provide examples for both.

Explain each of the situation as to why they may or may not invalidate the Ricardian Equivalence proposition
a) There is an election for a new government every 3 years, and there are no rules requiring the government budget has to be balanced.
b) Individuals can borrow at an interest that is twice as high as the rate for bank deposits.
c) The country has a system whereby everybody will get exactly the same wage.
d) Individuals cannot save or lend, they have to consume every dollar of their after-tax income.

Write a two-page paper mentioning some opportunity costs of stricter government safety regulations to improve drug safety, and explain why the concept of opportunity cost is helpful for evaluating whether or not stricter safety regulations are in the public interest. Please be clear and concise about what you are trying to explain that relates to the above question.

The following data pertain to products A and B, both of which are purchased by Susan. A is on vertical axis and B is on horizontal axis. Initially, the prices of the products and quantities consumed are:
PA= $8, QA= 5, PB= $6, QB= 10.
Susan has $100 to spend per time period. After an increase in price of B, the prices and quantities consumed are:
PA= $8, QA= 4, PB = $9, QB= 7.5.
Assume that Susan maximizes utility under both price conditions above. Also, note that if after the price increase enough income were given back to Susan to put her back on the original indifference curve, she would consume this combination of A and B:
QA= 10,QB= 4
a. Determine the change in consumption rate of good B due to (1) the substitution effect and (2) the income effect.
b. Determine if product B is a normal, inferior, or Giffengood. Explain.

Suppose that you have the following production function: ? = (100?^1/3)*(?^2/3) Where k represents the units of capital employed at production, L is the number of labor hours employed for total production. The wage rate equals to $18 per hour. The cost of capital equals $2,000 per unit.

a) What are the returns of scale for this production function? Prove it

b) You are currently employing 100 hours of labor. Calculate your total costs, average cost and marginal costs of labor and capital if K=100 units.

c) Which input is more productive? Should you employ more labor or more capital?

d) Draw the production function, MPK and MPL for the different values of K and L.

Consider and discuss how technology, population growth, and arising trends can impact various professions. Discuss how law enforcement may change as globalization continues.

US-China Trade War:

- What is the future prospects/issue?

- Briefly outline your view(s) on this international issue.

1- How does the demand curve show the marginal benefit received by consumers?

2- How does a supply curve show the marginal cost to producers?

3- What is a perfectly competitive market?

4- What can eliminate a shortage?

5-What can reduce a surplus?

5. Opportunity cost and production possibilities

Eric is a skilled toy maker who is able to produce both cars and drums. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time.

On the following graph, use the blue points (circle symbol) to plot Eric's initial production possibilities frontier (PPF).

Initial PPFNew PPF012345678302520151050DRUMSCARS

Suppose Eric is currently using combination D, producing one car per day. His opportunity cost of producing a second car per day is   per day.

Now, suppose Eric is currently using combination C, producing two cars per day. His opportunity cost of producing a third car per day is   per day.

From the previous analysis, you can determine that as Eric increases his production of cars, his opportunity cost of producing one more car   .

Suppose Eric buys a new tool that enables him to produce twice as many cars per hour as before, but it doesn't affect his ability to produce drums. Use the green points (triangle symbol) to plot his new PPF on the previous graph.

Because he can now make more cars per hour, Eric's opportunity cost of producing drums is   it was previously.

Using the Internet or your school library research the challenges associated with eCommerce payments that cross international borders.

• As you research, locate information that addresses the following:
  • Do most E-Commerce firms engage in international business transactions?
  • Look up the term repudiation, and research how firms that engage in international business protect themselves from it?
  • How are online purchases impacted by exchange rates and shipping charges?

1. Manager do not like future uncertainty.  Most managers use forecasting, prediction, and estimation to minimize uncertainty. Suppose you have a linear demand function for product X: Q = a + b•P_x+c•P_y+ d•M, where Q is sales of X, P_xand P_yare the price of products X and Y, and M (consumer’s income).

(a) What does the coefficient for each independent variable mean?

(b) How would you conduct inference from the regression coefficients?

(c) How should we determine the choice of forecasting technique?

Using indifference analysis and income constraints, explain why you don’t just eat lobster every day for breakfast, lunch, and dinner.

Introduction

Deciding to conduct formal market research is a significant decision for a firm. The following is an excerpt from a meeting, where the participants are discussing the for/against of whether to conduct more market research prior to the full launch of their new product.

As you read through the excerpt, identify the for/against reasons. Given these arguments, would you recommend that the firm go ahead and do the research?

Activity/Task

Jane:                OK team, we’re getting near the end of the project, time to discuss the merits of a market test. Personally, I’m keen on a market test as the successful launch and fast adoption of our product is a key success factor.

Bruce:             I’m going to disagree. I’m a ‘speed-to-market’ sort of guy. Look it’s a good product. It’s got success written all over it. Let’s just get it out there and the product will do the rest.

Mike:               Sure Bruce, it’s a good product. But unless it’s well promoted, widely available, and the consumers clearly understand its benefits – it just won’t sell well. A market test will give us valuable information so we can market it more effectively.

Harry:              But do we really need that information? We're professional managers and we've all been through major product launches before. I'm sure that between all of us we can work out the best way to strategy without extra information.

Simon:            Well I'm not so sure Harry. I’ve said it before, and I’ll keep saying it. This product is so critical – it’s just too important – we must test it and get it right.

Mary:              To add to this discussion, I’m going to put my finance hat on. We’re talking a big expense. This product already has a big investment to recover and adding another few hundred thousand dollar more is a big ask!

Lyn:                 Personally, I think that undertaking more research sends a bad signal to the executive team that we’re really not confident in the product’s likely success.

Darcy:             That could be true. But I’ve heard rumors that a few of our competitors are in development of a similar product. We need to go now or we’ll possibly lose our “first-to-market” advantage. I think that the executive team would be very disappointed if a competitor beat us to the marketplace.

Anna:              I'm sure that some of you feel like I do. We've been working on this project for over two years and it would be good to skip the research and just push the product out now.

But we’re professional. We’re paid to make the right decisions. So let’s weigh up the pros and con and make the right decision for the firm.