Milton Friedman has been quoted as stating; "There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud." However, many today would maintain that businesses have a responsibility to use their resources for the greater good of society in alleviating social ills as well as helping to guard against environmental degradation and enhance community and environmental well - being. Take a position. Do you support the idea of the Triple Bottom Line; profits, people and planet? Would Friedman agree with you?

Reconsidering the Baumol results. J. Bradford DeLong (1988), in

a comment on Baumol’s convergence result for the industrialized

countries over the last century, pointed out that the result could be

driven by the procedure through which the countries were selected.

In particular, DeLong noted two things. First, only countries that

were rich at the end of the sample (i.e., in the 1980s) were included.

Second, several countries not included, such as Argentina, were

richer than Japan in 1870. Use these points to criticize and discuss

the Baumol results. Do these criticisms apply to the results for the

OECD? For the world?

Compute all answers in (Solver) Excel, and show your equations.

Q1. Assume:

     TC = 5 + 2q + .5q²

      P = 20 – 3q

What is the profit max price, q, TR, cost?

Compare a Food Franchise to a Non-Food Franchise based on: initial investment, required net worth of franchisee, cash requirement, training requirements and other obligations.

Using some insights and examples from the textile industry, other sectors and products in any economy, comment on the realism of the assumptions of the theoretical model of perfect competition. [20 marks]

locate an article in the WSJ or any other economic news source that deals with the concept of opportunity cost, economic systems, or any of the topics with which we are dealing this week. Summarize the article, highlighting the key concepts.

In this problem you will calculate the CPI for the average urban consumer and for Jane using the prices for year 1 and year 2. The basket numbers represent the percentage of each dollar that is devoted to each good (written in decimal form). Assume year 1 is the base year. Round to two decimal places.

For the average person, the cost of the basket in year 1 is $ __ and the cost of the basket in year 2 is $ __ .

For the average person, the CPI in year 1 is __ and the CPI in year 2 is __ .

For the Jane, the cost of the basket in year 1 is $ __ and the cost of the basket in year 2 is $ __ .

For the Jane, the CPI in year 1 is __ and the CPI in year 2 is __ .

what are some of the effects of status on the conduct of bargaining? what are some of the disadvantages to paying attention to secondary status characteristics in negotiation

Write out the formula and calculate the present value of the following sequence of willingness to pay

amounts: this year, $75; next year, $100; year 2, $150; year 3, $50. Use a 5 percent discount rate. Recalculate

using a discount rate of 10 percent. What is the effect of using a higher discount rate? Do individual people

value consumption today over consumption tomorrow? What about society? Should they/it? Why or why

not?

can anyone explain this to me? how to come up with the formula?

Are the development of healthcare policies being influenced by traditions and values and if so how?

1) AS-AD analysis: As part of the Y2K problem a several years ago, it was feared that bank computers and ATMs might malfunction on January 1, 2000. The Federal Reserve was actually quite concerned about this. Analyze this situation in terms of aggregate demand and aggregate supply curves from chapter 9 (based on the quantity theory of demand where price is fixed in the short run but flexible in the long run). Regard this as a fall in money velocity that is temporary, just affecting the short run but returning to normal in the long run.

a) Which should the Federal Reserve worry about: a possible recession or excessive inflation?

b) Discuss what monetary policy actions you would suggest to prevent any such problems.

B. Can we justify the huge incomes paid to corporate bosses and super star athletes and actors? Is the value they add to society worth the price we pay? Defend your views.

a. Marsha has a salary of $500. He spends his entire budget on milk and cookies. The cost of a gallon of milk is $4 and the cost of a slice of cookies is $8. i. Construct Marsha’s budget constraint (place) cookies on the y-axis. ii. Suppose Marsha’s salary rises by 50%. Also suppose that the price of milk and cookies each rise by 50%. Construct Marsha’s new budget constraint. What is the difference between the new and old budget constraints? iii. Suppose that the price of cookies fell from $8 per cookie to $4. Construct Marsha’s new budget constraint. What is the difference between the new and old budget constraints. b. Explain the relationship between the budget constraint and indifference curve at consumer optimum.

Under what circumstances will bargaining under a property rule not yield the efficient outcome?

You are an economist for the Vanda-Laye Corporation, which produces and distributes outdoor cooking supplies. The company has come under new ownership and management and will be undergoing changes in its product lines and operating structure. As an economist, your responsibilities include examining the market factors that affect success or failure of a product, including the supply and demand for the product, market conditions, and the behavior of competitors with similar products.

The new owners are evaluating the operating structure, and you have two possible alternatives. One alternative requires a high level of investment in fixed costs compared to the other alternative. Jorge, your supervisor, has assigned you the task of evaluating the two alternatives.

Assume that the company has no debt. Regardless of the alternative selected, market conditions will require the selling price of the product to be $3.45 per unit. The details for each alternative are given in the table.

Tasks:

Jorge has asked you to provide detailed responses to the following questions:

• Analyze how the CVP analysis helps management in the planning stage of a new business.
• What is the break-even quantity for each of the investment alternatives?
• Analyze the breakeven differences between the two alternatives. What does the breakeven quantity tell you?
• Which alternative would you recommend to the company? Explain the pros and cons of each alternative and the reasons for your selection.