Suppose there are two paper mills on an island. Both mills produce air pollution that is non-rival and non-excludable. All of the island’s citizens are negatively affected by the air pollution, but Children and Adults are affected differently. Specifically, the marginal benefits of pollution abatement (A) to the Child population is given by MBChild = 162 − 3A and the marginal benefits of pollution abatement to the Adult population is given by MBAdult = 108−2A. Not surprisingly, pollution abatement is costly for both paper mills. For Mill 1, marginal abatement costs are given by MAC1 = 12A and for Mill 2, MAC2 = 6A. Suppose there are no enforcement costs associated with ensuring that polluters comply with any abatement regulations. Using this information, answer the following questions.

Part (a) Aggregating benefits for Children and Adults, what is the marginal social benefit (MSB) function for pollution abatement? Graphically illustrate marginal benefits for Children (labeling it MBC), Adults (labeling it MBA), and the two combined (labeling it MSB).

Part (b) Aggregating costs for Mill 1 and Mill 2, what is the marginal social cost (MSC) function for pollution abatement? Graphically illustrate marginal costs for Mill 1 (labeling it MAC1), Mill 2 (labeling it MAC2), and the two combined (labeling it MSC).

Part (c) In the absence of regulation and bargaining, how much pollution will each Mill choose to abate?

Part (d) What is the socially optimal level of pollution abatement? Show this graphically, making sure to label the MSB and MSC curves as well as all intercepts and the equilibrium.

Part (e) Suppose the government chooses to achieve the abatement goal you found in Part (d) using a flat-rate emissions tax. What emissions tax would induce an overall abatement level that would achieve this goal? Under this tax, how many units of pollution would Mill 1 choose to abate? How many units of pollution would Mill 2 choose to abate?

Part (f) Suppose instead that the government chooses to achieve the abatement goal you found in Part (d) using a flat-rate emissions subsidy. What emissions subsidy would induce an overall abatement level that would achieve this goal? Under this subsidy, how many units of pollution would Mill 1 choose to abate? How many units of pollution would Mill 2 choose to abate?

Part (g) Without doing the calculation, can you tell whether total market abatement costs under the tax will be lower than, equal to, or greater than total market abatement costs under the subsidy?

Part (h) Suppose it is discovered that pollution abatement is actually much more beneficial to children than we originally thought above. Suppose also that there are actually positive and sizable costs to enforcing pollution abatement regulations. Applying this new information, what can you say about the new socially optimal level of pollution relative to the level you found in Part (d)?

What are the basic challenges facing global companies, particularly in developing markets? How can small business address them?

What types of support are available to entrepreneurial ventures for global expansion to developing countries?

Principles List #2

1.Verbally and Graphically describe the CONSUMER SURPLUS captured by the buyers of a product

2. Verbally and Graphically describe the PRODCUER SURPLUS captured by the seller of a product

3. Verbally and graphically describe the ONE economic condition necessary for firms in an economy to sell a

part of the product they produce to buyers in foreign economies (Exporting)

4. Verbally and graphically describe the ONE economic condition for necessary for buyers in an economy to

buy a part of the quantity they buy from sellers that produce the product in foreign economies (Importing)

5. Verbally and graphically describe a domestic market for some product in an equilibrium state as a NET

IMPORTER of a product and indicate the gains to the domestic buyers and the losses to the domestic sellers

6. Verbally and graphically describe the consequences of the Government restricting the quantity of a product

that can be imported by passing import tariffs or import quotas

4. For each of the following, state if the reaction is Elastic? Inelastic? Unitary elastic? Perfectly elastic? Perfectly inelastic? Support your answer as instructed.

a. An international student was quoted as saying,” I would give up none of my units if they raise tuition by another 15%”; his unemployed American classmate felt he would give up 10% of them, however. Reaction is _____________________ Support with calculation or explanation . .

b) A couple of years ago I received this email from a GCC instructor (this really happened!) “Hi Caroline, I just got back from the little store on Campus ...... I was shocked that they charged me $2.50 for a 20 oz, Coke. Gas at a high price I understand, but Cola??? Wow!. Never! As a result, the demand curve of this colleague is best described as being __________________ - why? Explain/ show with a graph.

c). It was reported in Feb 2016 that Uber is cutting the fares in New York which is angering its drivers. The reason Uber gave: “In NY things tend to be quieter after the holiday. So we lowered the prices to get more people to use Uber. One driver complained, however, that the amount of money he earned did not change. Reaction of customers is ( elastic; inelastic; unitary elastic) _________________ Use total revenue to explain graphically.

2 a) The Wall Street Journal reported in January 2018 that the makers of many household goods have increased the price of household/personal care products by 2.9% from prices in the previous year. If the elasticity of demand were 0.48, then we can predict that the quantity of household products should have ______ ( increased ;decreased ) by _________. Show calculation/method here:

b). For this question, write the correct elasticity measure below the product you think it matches best then give your reason for one of the matches only Ed = -3.6 -1.4 -0.8 Airline travel; pet food; Delta airlines

(c)Tue or False? The government wants to raise tariffs on foreign cars that are gas guzzlers to discourage people from buying them because they are bad for the environment Then such cars are considered inferior. ______ explain briefly

d) In 2017 price elasticity was estimated for the good below, Do you think the elasticity number today would be higher? lower? The same? Why? Give two reasons Electric car: - 0.61

1. ___________________________________

2. ___________________________________

3. ___________________________________

e). An article in the Journal of New York State Economic Association claims that the income elasticity of demand for public college education in New York is + 2.16 .Who would find this information useful and most importantly WHY? Come up with 3 or more interested parties- keep in mind students are not one of them because they are the ones reacting. You MUST give a brief explanation for each to make connection clear.

a).

b).

c).

(BusinessWeek Bloomberg). Chinese purchased 9.315 million locally made small passenger cars in 2009 when the price of the average car (Chinese Yuan) was the dollar equivalent of $17,700. Since then, car sales outlets have been slashing prices. In August 2010 Chinese purchased 13.6 million cars at average prices of Yuan equivalents of $16,250. Based on the calculations shown the price elasticity of demand for cars in China is ____________ (elastic ; inelastic) . When commenting on market outcomes an analyst in Beijing would have made this statement ,” automakers and dealers in China are expected to be ____________ ( worse off ; better off .) To confirm show method and calculations for the Ed.

Let c(y1, y2) = y1 + y2 + (y1y2)^ −(1/3). Does this cost function have economies of scale for y1? What about economies of scope for any strictly positive y1 and y2. Hint, economies of scope exist if for a positive set of y1 and y2, c(y1, y2) < c(y1, 0) + c(0, y2). [Hint: Be very careful to handle the case of y2 = 0 separately.]

What are the Information systems used by Canadian Tire?

Sonic Goes Mobile
Sonic Drive-In has recently reviewed information for a number
of surveys involving various types of product evaluations. All
the surveys were completed online with customers recruited
from their proprietary panel. In addition to the actual survey
data and other information, the online interviewing system
captures the browser that the respondent used to complete
the survey. Analyzing the “browser used” data, Sonic has
observed a slow but steady increase in the number of indi-
viduals completing the survey on mobile browsers, including
tablets and smartphones. The most recent results show a big
jump in this percentage from a year ago, with an average of
nearly 30 percent of the more recent surveys completed on
mobile browsers.
Several managers have attempted completing some of these
surveys using their own tablets and smartphones. They like the
idea that using these platforms increase the options for the con-
sumer and that these devices permit consumers to take the sur-
veys at times and in places when and where they previously could
not. However, their experiences in testing the surveys on their
mobile devices have suggested that they may need to change the
way they design questionnaires to accommodate smartphones
and tablets.
Questions
1. What are the impediments and difficulties associated with
completing surveys on mobile devices?
2. What changes does Sonic need to make in its survey designs
to take advantage of these new survey platforms?
3. What about mixing survey results taken on laptop comput-
ers and those taken on mobile devices? What cautions, if
any, would you have?
4. Might the inclusion of mobile devices, along with laptops
and desktops, improve the quality of the sample? Why do
you say that?

ROLE-PLAY EXERCISE On Command Corporation PROCESS You have been assigned a role in the On Command Corporation case. Please read the general information (Introduction) about the case. Read and understand your role. Your teammates have different roles. Due the situation, you need to work with your team to produce an employee meeting, you have 15 minutes to present the statement and conduct the meeting – see the link attached with information about an employee meeting (you need to create a statements, be prepare for questions, and defend your organization). Key Issues Sexual harassment Employee retaliation Appropriateness of product This role-play was developed by Mark Arvizu, Ira Baeringer, Mark Hess, Kelley Hoven, Bill Speights, and Jennifer Sawayda for and under the direction of O.C. and Linda Ferrell. © 2015 On Command Corporation Background (Everyone reads.) On Command Corporation (OCC) is a world-leading provider of interactive in-room entertainment, information, and business services to the lodging industry. The company annually serves more than 250 million guests through 950,000 rooms in approximately 3,450 hotel properties. OCC provides on-demand and, in some cases, scheduled in-room television viewing of major motion pictures and independent non-rated motion pictures for mature audiences, for which guests pay on a pay-per-view basis. Depending on the type of platform installed and the size of the hotel, guests can choose up to 50 different movies with an on-demand system, or eight to 12 movies with a scheduled system. In addition to pay-per-view movies, OCC offers other services such as short subjects (such as yoga and sporting packages), Internet services, music, game services, and other hotel and guest services. OCC obtains the non-exclusive rights to show recently released motion pictures from major motion picture studios during the time period after the initial theatrical release and before home video or cable distribution. The company also contracts with a variety of other vendors and distributors of in-room entertainment for the other products it sells to hotels and guests. OCC negotiates contracts with major hotel chains and individual hotels that involve agreement on the type and extent of movies and services that are offered. Programming choices are key for OCC to differentiate itself from competitors. As guests order movies, they are shown in their rooms and then appear on their bill at check-out. Depending on the contract with the hotel, it may receive some of the profits from the movie ordered. The PS4 games are the least profitable, while adult films are by far the most profitable. Although not disclosed directly, most of the company’s revenues are from adult movies. In fact, some analysts estimate that up to 80 percent of the revenues OCC generates are from its adult movie business. A new management team has come to On Command and is evaluating the company’s strategy and business plan. Although the company has been around for 10 years with 2014 revenues of $262 million, it still has yet to become profitable. Three recent events have re-kindled discussion about the true nature of the company’s products, as well as potential ethical issues. The first situation arose when several female employees complained to their superiors about feeling uncomfortable in the presence of a certain male colleague, Ted Jones, because of what they say are “lewd” remarks about women. Ted Jones is the senior adult film editor whose job it is to edit adult films to reduce graphic sexual content. When approached about his actions, Ted defended himself by denying the allegations. Due to lack of concrete proof, Ted was given a warning and the women who filed the complaint were told just to avoid Ted whenever possible. However, more complaints have surfaced, and the human resources department has decided to conduct an investigation. The second issue arose from a complaint filed by another female employee, Donna Wilson, working as an administrative assistant. She threated to file suit against the company because of the way she was treated. She was personally offended by the content of the adult movies. Although she had signed a document that clearly stated the nature of the videos available for viewing in her office upon her hire, she protested and said that the adult portion of the OCC product line should not be viewable in any of the corporate offices because it was sexually offensive, degraded women, and promoted sexual harassment in the workplace. She also insisted that the true extent of the sexual content was not explained to her when she signed the agreement. After hearing her complaint, her supervisor informed her of the release she had signed and also told her she had the clear choice not to work there. Since that time, Donna alleges, she claims she overheard her supervisor telling other workers to shun her at work because she was a troublemaker who refused to be a team player. She has also been cut out of meetings and claims the supervisor is constantly cutting her down in front of her colleagues. Finally, it has recently come to management’s attention that there has been a drop in revenue due to the deliberate refusal of many hotels to offer the adult film products as they would conflict with their quality, “family-friendly” image. The increase is this type of product censorship has led to a drop in revenue for OCC. At a recent meeting at Liberty Media (OCC’s parent company), several questions were raised about the ethical nature of OCC’s primary revenue source. Questions such as these were presented during the discussion regarding what to do with struggling OCC. A big question is whether it was masquerading as an entertainment company with many different product offerings to mask the fact that it is really in the adult movie business. Management is not sure whether it would be wise to disclose where most of its revenue comes from. Also, is the nature of how the company handles the editing of adult films internally encouraging sexual harassment and retaliation of female employees? The management team decided to develop a business strategy they could use going forward. AND I AM Pam Stone – General Counsel You joined OCC at the same time Chris Smith did. You both came from another subsidiary of Liberty Media, the parent company of OCC and several other entertainment type companies. Your specialty is more in the contract and merger and acquisition area. However, you have been dealing with a tremendous amount of employment-related issues. The human resources department has been significantly cut, meaning that you must often work in close proximity with Don Randall, the human resource manager. Chris has made you aware that all of the offices contain televisions, and employees have the same access as hotel guests. This includes the adult films. You have recently begun to research charges brought up by Ms. Wilson. You feel that adult movies should not be watched in the workplace unless they are being edited or viewed for possible selection. You learn that many employees frequently watch adult content in their offices, although most claim they do so during their break time. OCC has about 300 employees in the field who work directly with hotels to install the product as well as perform updates to products. Unfortunately, the system OCC currently uses does not allow for updates to be done electronically. The field service employees see the adult films during the updating process. OCC also manufactures its own “box” that allows the pay per systems to operate. As part of the testing process, the manufacturing employees must test each line of products by watching to make sure they work properly regular cable, short subjects, games, and adult films. The human resource manager Don Randall has provided you with waivers and disclaimers that all employees sign upon hire indicating that they may be exposed to adult film content during their employment. However, Ms. Wilson’s claims have gone beyond simply being offended. Now she is claiming that her supervisor has begun retaliating against her because she complained. This could certainly be grounds for a lawsuit if not handled properly. Don Randall has also asked you for assistance in handling some potential sexual harassment allegations he has heard. Since you came to OCC, you have been responsible for collecting and providing due diligence to an outside law firm to review for a possible merger and/or sale. You were intimately involved in the contract to secure an additional $60 million investment from Liberty Media. You have also been involved in many of the discussions with Chris Smith and executive VP and CFO Bill Moore as to what the company strategy needs to be.

case presentations what can be my answer for this case if I am the general counsel

it could be 1 or 2 slide it does not matter thank in advance