Strayer University ECO 550 Week 1 Homework Chapter 1 2. A principal-agent relationships involves the owners (principals) delegating decision-making authority to managers (agents). A conflict occurs when the agents pursue acceptable levels of shareholder wealth and profit rather than a maximization of profit. They are pursuing their own self-interests. One way that the agents act in their own self-interests would be by focusing on long-term job security. This could cause the agents to limit
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Check Your Understanding Week 5 (ANSWERS) o Chapter 9: Problems 3‚ 4‚ and 5 3. Electrical generation study of 56 British firms: a. VC = AVC(Q) VC = 1.24Q + .0033Q2 + .0000029Q3 − .000046Q2Z − .026QZ + .00018QZ2 b. MC = 1.24 + .0066Q + .0000087Q2 − .000092QZ − .026Z + .00018Z2 c. Z = 150(thousand) kilowatts SRAVC = 1.24 + .0033Q + .0000029Q2 − .000046Q(150) − .026(150) + .00018(150)2 SRAVC = 1.39 − .0036Q + .0000029Q2 SRMC = 1.24 + .0066Q + .0000087Q2 − .000092Q(150) −
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Check Your Understanding Week 4 Chapter 7: Problems 1‚ 6‚ 8‚ and 9 Chapter 7 Production Economics ___________________________ Solutions to Exercises 1. Deep Creek Mining Company: Complete the table. a. L TPX (=Q) MPX = ΔQ/ΔX APX = Q/X 0 0 --- --- 1 3 3 3.00 2 6 3 3.00 3 16 10 5.33 4 29 13 7.25 5 43 14 8.60 6 55 12 9.17 7 58 3 8.29 8 60 2 7.50 9 59 −1 6.56 10 56 −3 5.60 b. c. Stage I: 0 − 6
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Each problem/question is worth 3 points. Please label your answers with the correct chapter and problem in the submission area. • Chapter 1: Exercises 2‚ 3‚ and 6 • Chapter 2: Exercises 1‚ 5‚ and 6 Chapter 1: Exercises 2‚ 3‚ and 6 2.Shareholders want high long-term profits. Managers want job security and wonderful perks and amenities. Since risk and return tend to be positively related‚ managers may wish to avoid risks that shareholders want the managers to undertake. To encourage managers
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Chapter 5: Problems 1‚ 5‚ 6‚ and 9 1) A)$66‚000 B) S will then become $754.29 C) We can find K by using the regression line method and time series data or cross sectional data. D) The potential weakness for this model is variable t because it is unknown. 5) 2000 | 800 | x x x x 2001 925 x x 800 800 2002 900 x x 913 838 2003 1025 x 875 901 857 2004 1150 x 950 1013 907 2005 1160 960 1025 1136 980 2006 1200 1032 1112 1158 1034 2007 1150 1087 1170 1196 1084 2008 1270
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Chapter 7 & 8 Chapter 7: Problems 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 a 500-bhp rating. a. Complete the following table: Labor Input I (No. of Workers) Total Product Marginal Product Average Product 1 3 0 + 3 = +3 3/1 = 3 2 6 6 – 3 = +3 6/2 = 3 3 16 16 – 6 = +10 16/3
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You may have heard about goods being classified as either a search or an experience good. The concept is not new‚ and was actually developed by American economist Philip Nelson. These classifications provide a working distinction between different types of products and services. If you like/need examples of Nelson’s classifications‚ here are some. Paper (notebook‚ copier‚ etc.) is a search good. Paper products can be easily be compared and evaluated prior to purchase. Commodities are search
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Introduction For this assignment‚ General Motors is the automobile company that will be reviewed and researched in detail. In the year 1908 William Durant‚ who was already known as a leader in this industry for horse drawn vehicles‚ founded General Motors. "At its inception GM held only the Buick Motor Company‚ but in a matter of years would acquire more than 20 companies including Oldsmobile‚ Cadillac‚ and Oakland‚ today known as Pontiac" (General Motors‚ 2012). In this paper GM ’s income statement
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QD = fðP‚ PS‚ PC‚ Y‚ A‚ AC‚ N‚ CP‚ PE‚ TA‚ T=S …Þ [2.1] where QD = quantity demanded of (e.g.‚ Toyota Prius or Chevy Volt) P = price of the good or service (the auto) PS = price of substitute goods or services (e.g.‚ the popular gasoline-powered Honda Accord or Chevy Malibu) PC = price of complementary goods or services (replacement batteries) Y = income of consumers A = advertising and promotion expenditures by Toyota‚ Honda‚ and General Motors (GM) AC = competitors’ advertising and promotion
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Eco 550 Quiz 1 • Question 1 2 out of 2 points Which of the following is considered to be a cost of information? Answer Selected Answer: The time spent to collect the information. Correct Answer: The time spent to collect the information. • Question 2 2 out of 2 points Assume that a cargo ship carrying the merchandise of a cloth merchant has been wrecked. Such a setback will be accounted as the merchant’s: Answer Selected Answer: sunk cost. Correct Answer:
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