What are some of the important questions regarding the assignment of decision rights in an organizational hierarchy?
What will be an ideal response?
Some of the important questions are these: Should we alter the current assignment of decision rights? Will the changes add value? What factors are important in helping the assignments to be optimal? Which assignment structure should be used-teams or individuals?
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You bought a subscription for an online magazine and shared your log-in details with a friend. Your friend is a ________ in this case
A) free-rider B) rent seeker C) speculator D) hedger
Why is macroeconomic forecasting so difficult? Does this difficulty mean economics is a worthless field of study?
What will be an ideal response?
Producer surplus equals total revenue minus the sum of all marginal cost
What will be an ideal response?
Suppose the production of helicopters is an industry characterized by increasing returns to scale and an Argentine firm, Cicare, is the only player in this market. The firm caters to the global market and earns a profit of $10 million. Flettner, a German firm has been considering entering this market for a while, but it is aware that its entry will cause each firm to lose about $4 million
However, a government subsidy allows Flettner to enter the helicopter market and Cicare incurs a loss of $4 million due to its entry. Eventually, Flettner evolves as the monopoly supplier of helicopters while Cicare is forced to shut down. This conclusion rests on which of the following assumptions? a. The German government was experiencing a budget surplus. b. There was low demand for Cicare automobiles in the world market. c. The German government was able to forecast accurately the subsidy required to induce Flettner to produce helicopters. d. The quality of Flettner's helicopters were inferior compared to that of Cicare's. e. Cicare diversified into the production of automobiles.