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Due DudUe at  Consider the following topic and write a short essay of about 300 words. Tell us about your position on the copyright issues discussed in the lecture on current issues. · How do you think they should or will be resolved in the future? · Do you think the copyright laws should remain […]

Chapter 17: Problems 1, 5, and 9(c) Week 10 – Check Your Understanding  Chapter 17 Exercise 1, 5, and 9(c) A firm has the opportunity to invest in a project having an initial outlay of $20 ,000.  Net cash inflows (before depreciation and taxes) are expected to be $5,000 per year for five years.  The […]

Chapter 16 Exercise 4, 6(a, c), and 9 4. What are the incentives to innovate for a monopoly firm as compared with a firm in a competitive market if patent protection is not available?  6. The industry demand function for bulk plastics is represented by the following equation: P = 800 – 20Q     where Q […]

Week 7 – Check Your Understanding: Chapter 13 Exercise 2, 13, and 15   2. Consider the following payoff matrix:                          Player B Strategy              1   2                       $1,000   – $2,000       […]

Week 6 – Check Your Understanding Chapter 11 Exercise 2(a, b), 4(a, c), and 6 2. Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large firm – Tile king.  Ajax produces a multiheaded tunnel wall scrubber that is similar to a model produced by Tile King.  Ajax decides to […]

Week 5 – Check Your Understanding: Chapter 9 Exercise 3, 4, and 5 3.  A study of the costs of electricity generation for a sample of 56 British firms in 1946-1947 yielded the following long-run cost function: 16 AVC = 1.24 + .0033Q + .0000029Q2 – .00046QZ – .026Z + .00018Z2 Where AVC = average […]

Week 4 – Check Your Understanding:   Chapter 7 Exercise 1, 6, 8, and 9   1.             In the Deep Creek Mining Company example described in this chapter (Table 7.1), suppose again that labor is the variable input and capital is the fixed input.  Specifically, assume that the firm owns a piece of equipment having […]

Week 3 – Check Your Understanding:   Complete Question Chapter 5 1.  The forecasting staff for the Prizer Corporation has developed a model to predict sales of its air-cushioned-ride snowmobiles. The model specifies that sales S vary jointly with disposable personal income Y and the population between ages 15 and 40, Z, and inversely with […]

Chapter 3: Problems 3, 4, and 7 3. The Olde Yogurt Factory has reduced the price of its popular Mmmm Sundae from $2.25 to $1.75. As a result, the firm’s daily sales of these sundaes have increased from 1,500/day to 1,800/day. Compute the arc price elasticity of demand over this price and consumption quantity range. […]

ECO 550 Check your understanding Chapter1:  Problems 2,3 and 6 Chapter 2:  Problems 1, 5 and 6 2.  Explain several dimensions of the shareholder-principal conflict with manager-agents known as the principal-agent problem. To mitigate agency problems between senior executives and shareholders, should the compensation committee of the board devote more to executive salary and bonus […]