- What is exchange rate overshooting How is it related to exchange rate volatilityAnswer
- When there is an appreciation in the peso the return on CAD deposits exceeds that on MXN ? Answer
- Illustrate how a temporary decrease in Japan’s money supply affects the money and FX markets
- state how each of the following variables changes in the short run
- state how each of the following variables changes in the long run
- Relationship between Swedish kronor (SEK) and Danish krone (DKK).
- Using the FX and money market diagrams, illustrate how this change affects the money and FX markets.
- Using a new diagram, illustrate how this change affects the money and FX markets
- Briefly discuss how the monetary approach to exchange rate determination differs from the asset approach and how you would use each approach in your policymaking
- Describe the FX market diagram.
- What is exchange rate overshooting? How is it related to exchange rate volatility?
- What is the trilemma?
- EXTERNAL ECONOMIES OF SCALE ANDINTERNATIONAL LOCATION OF PRODUCTION ANSWER
- ECONOMIES OF SCALE
- Economies of scale and market structure
- external economies of scale v/s internal economies of scale
- The Theory of External Economies
- Specialized Suppliers
- Labor Market Pooling
- Knowledge Spillovers
- External Economies and Market Equilibrium
- External Economies and International Trade
- External Economies and the Pattern of Trade
- Trade and Welfare with External Economies
- Draw the individual supply curves and the market supply curve. At what price and quantity is the supply curve kinked? Answer
- The market supply curve is the horizontal summation of the individual supply curves
- The market quantity supplied at a price of 15 cents is .51 million pounds. The market quantity supplied at a price of 30 cents is _______ million pounds.
- Determine the equations for MP and AP of variable input L ? Answer
- At what rate of usage of variable input is the point of diminishing marginal returns encountered?
- What rate of usage of variable input is required to reach the maximum output level?
- What is the law of diminishing returns? Does PowerGuns Co’s production function display this characteristic? Explain in full. Be sure to provide convincing mathematical evidence to support your conclusion.
- What is the total cost function for PowerGuns Co — namely, how much would it cost to produce Q guns?
- What are average and marginal costs for producing Q guns? How do average costs vary with output?
- How many workers are required to produce 250 guns? What is the average cost per gun?
- What capital/labor (K/L) ratio should the new plant accommodate if it wants to minimize the total cost of producing any level of output Q?
- Given that price and quantity, how much consumer surplus, producer surplus, and dead- weight loss is there? Answer
- Demand in a perfectly competitive market is Qd = 100 − P . Supply in that market is Qs = P − 10.
What is the market equilibrium price and quantity?
- If the government imposes a $10 per unit sales tax, what is the new equilibrium price and quantity?
- Once the government imposes the tax, how consumer surplus, producer surplus, and dead-weight loss is there?
- Determine the implications for each of the computed elasticities for the business in terms of short-term and long-term pricing strategies? Answer
- Provide a rationale in which you cite your results.
- Recommend whether you believe that this firm should or should not cut its price to increase its market share.
- Provide support for your recommendation.
- Assume that all the factors affecting demand in this model remain the same, but that the price has changed. Further assume that the price changes are 1000, 2000, 3000, 4000, 5000, 6000 cents.
- Plot the demand curve for the firm.
- Plot the corresponding supply curve on the same graph using the supply function Q = 5200 + 45P with the same prices.
- Determine the equilibrium price and quantity
- Outline the significant factors that could cause changes in supply and demand for the product.
- Determine the primary manner in which both the short-term and the long-term changes in market conditions could impact the demand for, and the supply, of the product.
- Determine the optimal quantity to produce (qM), the price you should charge for your product (pM), and compute the profit of your business. Answer
- Determine the market power
- Assume the business offers the product in Version A only. Determine the optimal price () and compute the profit of the business.
- Assume the business offers the product in Version A and Version B. Determine the optimal prices ( and ) and compute the profit of the business.
- provide an intuitive explanation of the Principal-Agent problem and discuss any mechanisms used to mitigate the problem. You should use the business owner-manager problem as an illustration.
- Provide and intuitive explanation of the Adverse Selection problem and discuss its implications. You should use the health insurance industry as an illustration.
- Find the predicted compensation with the productivity of 100. What is the residual for the observation of the base year, 1992? Answer
- Is there strong evidence that the compensation is linearly related to productivity? Justify your answer.
- Find a 95% confidence interval for the slope parameter B2.
- Is there strong evidence that B2 is greater than 0.65? Justify your answer using the level of significance alpha=0.05.
- Find the 90% confidence interval for the mean compensation when the productivity is 85 and interpret the CI.
- Find the 90% confidence interval for the compensation of a year when the productivity is 85 and interpret the CI.
- Check the normality assumption.
MGMT 520 Legal, Political and Ethical Dimensions of Business Week 5- Discussion 1 – Mr. Mapp against Gimbels Department Store Case
Please read problem 3 at the end of Chapter 17 regarding the lawsuit by alleged thief Mr. Mapp against Gimbels Department Store. Under what theory might Mr. Mapp argue that Gimbels is liable for the assault committed against Mapp by Mr. DiDomenico, an employee of J.C. Penney’s? Would Mr. Mapp be successful under the theory you chose? Why or why not?
- On March 29, 1983, Barry Mapp was observed in the JCPenney department store in Upper Darby, Pennsylvania, by security personnel, who suspected that he might be a shoplifter. Michael DiDomenico, a security guard employed by JCPenney, followed Mr. Mapp when he left the store and proceeded to Gimbels department store. There, Mr. DiDomenico notified Rosemary Federchok, a Gimbels security guard, about his suspicions. Even though his assis- tance was not requested, Mr. DiDomenico decided to remain to assist in case Ms. Federchok, a short woman of slight build, required help in dealing with Mr. Mapp if he committed an offense in Gimbels. It came as no surprise when Mr. Mapp was observed taking items from the men’s department of the store; when he attempted to escape, he was pursued. Although Ms. Federchok was unable to keep up, Mr. DiDomenico continued to pursue Mr. Mapp and ultimately apprehended him in the lower level of the Gimbels parking lot. When Ms. Federchok arrived with Upper Darby police, merchandise that had been taken from Gimbels was recovered. Mr. Mapp, who had been injured when he jumped from one level of the parking lot to another, was taken to the Delaware County Memorial Hospital, where he was treated for a broken ankle. Mr. Mapp filed suit against Gimbels for injuries sustained while being chased and apprehended by Mr. DiDomenico. He alleged in his complaint that Mr. DiDomenico, while acting as an agent of Gimbels, had chased him, had struck him with a nightstick, and had beaten him with his fists. Gimbels says it is not liable because Mr. DiDomenico was not its agent. Is Gimbels correct? [Mapp v Gimbels Dep’t Store, 540 A.2d 941 (Pa. 1988)] It is settled law that a principal may be held responsible for the tortious (wrongful) actions of an employee for acts carried out in the course of and within the scope of employment. (See in your text, Lange v. National Biscuit Co)
On the other hand, it will be more difficult to hold a principal responsible for the actions of a party not its agent. When looking at this case, what theory might Mr. Mapp use to argue that Gimbel’s is liable for the assault committed against him by Mr. DiDomenico, an employee of J.C. Penney’s? How will Gimbels counter that argument?
An employer may be held vicariously liable for the conduct of employee within the “scope of employment.” As you can imagine, the amount of case law generated in defining scope of employment is staggering. So, what does scope of employment mean? What about travel to and from work? What about travel for work? What about the issuance of a company car or cell phone–what factors impact a court’s decision that scope of employment exists?
What factors impact whether express or apparent agency exists? What if Mr. D. was wearing a security guard uniform, for example. Does this matter to our analysis?
MGMT 520 Legal, Political and Ethical Dimensions of Business Week 4 Contracts and IP Issues – C You Decide Project
Can Big Bank’s president rescind the contract? Under what circumstances can a contract be rescinded by either party? What facts have to be alleged and proven? What is the result of a contract that is rescinded?
Big Bank’s president also threatens legal action. What potential causes of action could you foresee him bringing in court? Would he be successful? Why or why not? What arguments could Systems Inc. raise in its defense? What are Big Bank’s potential damages?
Review the facts provided and the sample contract. What provisions of the contract could you cite to support an argument that it is not in Big Banks best interest to rescind the contract? What facts could you cite to support an argument that Big Bank be responsible for some of these issues and/or not in compliance with the contract?
In this situation, amicable resolution of problems is greatly preferred by your company. Would this be true in all contract disputes? In what situations and why would you decide to move to litigation over amicable resolution?
There are three types of contract performance: complete, substantial, and material breach. Describe the differences (and similarities) among the three, and explain some of the legal ramifications for one or more of these types of performances. (e.g., what happens if one party performs completely but the other party performs only substantially?) Give examples from outside readings or experiences in your career or personal business life.
What are the two most important concepts from this exercise that will help you in future contract negotiations? (All students must answer this question for full credit in this project.)
1) Can Big Bank’s President rescind the contract?
Under what circumstances can a contract be rescinded by either party?
- Big Bank’s President also threatens legal action. What potential causes of action could you foresee him bringing in court?
Would he be successful? Why or why not? What arguments could Systems Inc. raises in its defense?
What are Big Bank’s potential damages?
A: In this case, Big Bank’s potential damages would lost profits due to the delay in the execution of the contract.
- Review the facts provided and the sample contract. What provisions of the contract could you cite to support an argument that it is not in Big Banks best interest to rescind the contract?
- In this situation amicable resolution of problems is greatly preferred by your
company. Would this be true in all contract disputes?
In what situations and why would you decide to move to litigation over amicable resolution?
- What are the two most important concepts from this exercise that will help you in future contract negotiations?