Question No 5:

1. Using the supply schedule given below, draw an accurately labelled supply curve. Also, comment on the shape of the supply curve. Why does the supply curve slope like this? Explain clearly.

[Answer in 180 – 240 words]

[Draw in paper; take photo and paste/Use MS Word/add screenshot]

2. Do you think the level of technology available have an impact on the supply of a product? Using examples, discuss the impact of technology on supply.             [Answer in 60 – 80 words]
3. What do you think the impact of a change in tax on the supply of a product? Using examples, discuss the impact of tax on supply.                                                        [Answer in 60 – 80 words]

a) Using the supply schedule given below, draw an accurately labelled supply curve. Also, comment on the shape of the supply curve. Why does the supply curve slope like this? Explain clearly. Price 10 8 6 4 2 Supply 500 400 300 200 100 [Answer in 180 – 240 words] [Draw in paper; take photo and paste/Use MS Word/add screenshot]

b) Do you think the level of technology available have an impact on the supply of a product? Using examples, discuss the impact of technology on supply. [Answer in 60 – 80 words]

c) What do you think the impact of a change in tax on the supply of a product? Using examples, discuss the impact of tax on supply. [Answer in 60 – 80 words]

microeconomics

Games, Inc. is considering selling tennis racquets. It can use a proven technology to produce the racquets. This method will produce a $24M cashflow next year. The firm could also choose a new experimental method for producing racquets. This method has lower costs if it works. If the new technology works it will produce a cashflow of $28M next year. If it is unsuccessful it will produce a zero cashflow next year. The probability of success is 0.8 and the cashflows are uncorrelated with the market return. Both methods require a $20M dollar investment today. There are no cashflows after next year. The risk-free rate is 10%. The market price of risk is 8.4%.

(a) What is the NPV of the two projects? Which project should an all equity firm choose? Hint. You will have to determine the discount rate for both technologies [5 Marks]

A newspaper published an article about a study in which researchers subjected laboratory gloves to stress. Among 225 vinyl? gloves, 60?% leaked viruses. Among 225 latex? gloves, 9?% leaked viruses. Using the accompanying display of the technology? results, and using a 0.05 significance? level, test the claim that vinyl gloves have a greater virus leak rate than latex gloves. Let vinyl gloves be population 1.

Technology Results:::

Pooled? proportion: 0.35

Test? statistic, z: 11.2921

Critical? z: 1.6449

?P-value: 0.0000

90?% Confidence? interval:

0.4441890 < p1? p2 <0.5691444

A) What are the null and alternative hypotheses?

B) Identify the test statistic

C) Identify the P-value

D) What is the conclusion for the test?

A power equation is a nonlinear regression equation of the form

y equals ax Superscript by=axb.

Use a technology tool to find and graph the power equation for the data below. Include a scatter plot in your graph. Note that you can also find this model by solving the equation

log y equals m left parenthesis log x right parenthesis plus blogy = m(log x)+b.

LOADING...

Click the icon to view the data set.

x   y
1   689
2   410
3   225
4   116
5   81
6   78
7   69
8   76?

Use technology to find the power equation.

y equals left parenthesis nothing right parenthesis x Superscript nothingy=x

?(Round to two decimal places as? needed.)

Most people have several jobs over their lifetimes. Give a brief description of two jobs . Without revealing private information, explain if the job was part-time or full-time and address the following questions.

• What skills were required to perform your best?

  • To what extent were agility, problem solving, and technology skills necessary for success?

• What skills did you learn in each job?

  • How did learning these skills contribute to improving your ability to be effective in your work?

• Did these new skills increase your human capital?

• If you haven’t yet had a job, describe the type of career you hope to have after finishing school.

  • How will agility, problem solving, and technology skills be a vital part of your success in this type of career?

Jones Co. is in a technology-intensive industry. Recently, one of its competitors introduced a new product with technology that might render obsolete some of Jones’s inventory. The accounting staff wants to follow the appropriate authoritative literature in determining the accounting for this significant market event. Instructions If your school has a subscription to the FASB Codification, log in and prepare responses to the following. Provide Codification references for your responses. a.   Identify the primary authoritative guidance for the accounting for inventories. What is the predecessor literature?  

b.   List three types of goods that are classified as inventory. What characteristic will automatically exclude an item from being classified as inventory?  

c.   Define “market” as used in the phrase “lower-of-cost-or-market.”  

d.   Explain when it is acceptable to state inventory above cost and which industries allow this practice.

Do you think Kappmeyer should sign the proposal, and why?  Did USS team get the right answer to the wrong question? What if, rather than whether USS should install CSP in Mon Valley, Kappmeyer has asked whether USS should invest in or participate in this technology? Would you have answered that question differently than you did when the problem was framed as Mon Valley issue?  What should USS’s next technological move be? Should USS take another “long shot” to leapfrog ahead of Nucor? Or should it “get on the ground” neck-to-neck with Nucor, employing a viable commercial technology as soon as possible incrementally improving CSP?

Continuous casting investments at USX corporation (HBS 9-697-020)

Business Policy

1. Draw the Trade-off between Agency Efficiency and Technical Efficiency graph in BLACK.
   1. Define and explain what a relationship-specific asset is.
   2. Explain why a relationship specific asset is critical to the make or buy decision.
   3. Define and explain the technical efficiency curve.
   4. Define and explain the agency efficiency curve.
   5. Why is the "technical efficiency" line above the x-axis?
   6. Why does the "agency efficiency" line cross the x-axis?
   7. How might globalization affect the trade-offs between technical and agency efficiency? On top of the original graph, draw a change from globalization in RED.
   8. How might advances in information technology affect the trade-offs between technical and agency efficiency? On top of the original graph, draw a change from technology in BLUE.

Consider the labor market for garment workers. This work used to be done largely by hand. As new machines were developed to help in the making of clothes, what do you predict happened to the demand for labor? The invention of new technology can be thought as the price of capital as falling.

1) Consider the scale effect. Do you expect this to be small or large? Consider the two factors that determine the size of the scale effect.

2) Consider the substitution effect. Do you expect this to be small or large? Consider the two factors that determine the size of the substitution effect.

3) Can you guess whether the substitution or scale effect might dominate?

4) Suppose capital and labor are gross substitutes. Would you consider new technology in the sewing industry to be a good thing or bad thing? Why?