Questions and Answers of Leadership in organizations

What is this firm’s LAC curve?
A firm employs a production function Q F(K, L) for which only two values of K are possible, K1 and K2. Its ATC curve when K K1 is given by ATC1 Q2 4Q 6.The corresponding curve for K K2 is ATC2 Q2
The output-expansion path for this production function at these input prices is a straight line through the origin. When it produces 5 units of output, it uses 2 units of K and 3 units of L. How much
A firm has a production function Q F(K, L) with constant returns to scale. Input prices are r 2 and w
Is this firm minimizing its costs? If so, explain how you know. If not, explain what the firm ought to do.
A firm purchases capital and labor in competitive markets at prices of r 6 and w 4, respectively. With the firm’s current input mix, the marginal product of capital is 12 and the marginal product
Sketch the short-run TC, VC, FC, ATC, AVC, AFC, and MC curves for the production function where K is fixed at 2 units in the short run, with r 3 and w 2.
If the LAC curve is rising beyond some point, what can we say about the degree of returns to scale in production?
In which production process is fixed cost likely to be a larger percentage of short-run total costs, book publishing or landscape gardening?
What is the relationship between the law of diminishing returns and the slope of the short-run marginal cost curve?
What is the relationship between the law of diminishing returns and the curvature of the variable cost curve?
Each problem on an exam is worth 20 points. Suppose that from the last seconds you devoted to Problem 10 on the exam you earned 2 extra points, while from the last you earned on these two problems
A firm’s short-run production function is given by anda. Sketch the production function.b. Find the maximum attainable production. How much labor is used at that level?c. Identify the ranges of L
Suppose a crime wave hits West Philadelphia, so that the marginal product and average product of police officers are now 60 arrests per hour for any number of police officers. What is the optimal
The following table provides partial information on total product, average product, and marginal product for a production function. Using the relationships between these properties, fill in the
Currently, 2 units of labor and 1 unit of capital produce 1 unit of output. If you double both the inputs (4 units of labor and 2 units of capital), what can you conclude about the output produced
A factory adds a worker and subsequently discovers that the average product of its workers has risen. True or false:The marginal product of the new worker is less than the average product of the
Distinguish between diminishing returns to a variable input and decreasing returns to scale.
How is an isoquant map like an indifference map? In what important respect do the two constructs differ?
A wag once remarked that when a certain government official moved from New York to California, the average IQ level in both states went up. Interpret this remark in the context of the
Why should a person in charge of hiring productive inputs care more about marginal products than about average products?
Give an example of production in which the short run lasts at least 1 year.
Hal is having difficulty choosing between two tennis rackets, A and B. As shown in the diagram, B has more power than A, but less control. According to the rational choice model, how will the
Claiborne is a gourmet. He makes it a point never to visit a restaurant a second time unless he has been served a superb meal on his first visit. He is puzzled at how seldom the quality of his second
Sears Roebuck has hired you as a consultant to give it marketing advice about how to sell its new all-terrain vehicle. On the basis of the material covered in this chapter, suggest two specific
Suppose your happiness is given by a Kahneman-Tversky value function like the one shown in the diagram.1. Suppose your happiness is given by a Kahneman-Tversky value function like the one shown in
The policy of one school was to punish students for being late, while the corresponding policy in an otherwise identical school was to reward students for being on time. If effectiveness is measured
Is there anything irrational about weighing gains less heavily than losses?
Distinguish between (1) the best decision and (2) the decision that leads to the best possible outcome.
Why is it rational to make decisions with less than complete information?
Suppose you were the owner of a small business and were asked the maximum you would be willing to pay in order to attend a course in the traditional theory of rational choice. In which case would
And suppose Abdul signs a contract saying that he will donate 20 to a cause he opposes in the event that he receives less than 90 percent of any money he earns jointly with Benjamin.Will Benjamin
Now, suppose Benjamin’s utility function is given by UB MB 2 in Problem
Abdul’s utility function is given by where MA is Abdul’s wealth level and MB is Benjamin’s wealth level. Benjamin’s utility function is given by Suppose MA MB 10 initially, and suppose
Alphonse’s utility function is given by where MA and MG are the wealth levels of Alphonse and Gaston, respectively. If Alphonse’s initial wealth level is 100 while Gaston’s is only 20, how much
Explain how the military arms race between the United States and the former Soviet Union had the same formal structure as a prisoner’s dilemma.
In the commitment model, what role is played by the observability of preferences?
Try to think of at least two commitment problems you personally encountered during the last year.
Explain the role of rational analysis in the psychologist’s model of human motivation.
Summarize in your own words the major difficulties of the present-aim and self-interest standards of rationality.
If he becomes an attorney, he will make M 900/yr if he becomes a partner in a Wall Street firm, but only M 25/yr if he fails to make partner. The probability of his becoming a partner is 0.2. Smith
John has a von Neumann–Morgenstern utility function given by where M is his income. If he becomes an economics professor, he will make M 81/yr with probability
Suppose your utility function is given by where M is your total wealth. If M has an initial value of 16, will you accept the gamble in the preceding problem?
What is the expected value of a random toss of a die? (Fair and six-sided.)
Give some examples in which people do not self-insure against minor losses.
Explain, in your own words, why it makes sense to selfinsure against minor losses.
Give some examples of behavior that seem inconsistent with the assumption of risk aversion.
Why is it intuitively plausible to assume that most people are risk averse?
How does statistical discrimination affect the distribution of insurance premiums within a group?
Explain why, despite the potential adversarial relationship between sellers and buyers, commercial advertising nonetheless transmits information about product quality.
Why must a signal between potential adversaries be costly to fake?
How will your answer to the preceding problem differ if the tuition charged by outside universities is $12000/yr? What is the economic interpretation of a value of k greater than 1?*21. Harry runs a
At current prices, housing costs $50 per unit and the composite good has a price of 1 per unit. A wealthy benefactor has given Joe, a penniless person, 1 unit of housing and 50 units of the composite
If the prices next year are PX 6 and PY 30, and Jones’s income is 1020, will he be better or worse off than he was in the previous year? (Assume that his tastes do not change.)
Jones spends all his income on two goods, X and Y. The prices he paid and the quantities he consumed last year are as follows: PX 15, X 20, PY 25, and Y
Explain in your own words why even long-term heavy drinkers might be highly responsive to increases in the price of alcohol.
Do you think a college education has a high- or low-price(tuition) elasticity of demand?
Is the cross-price elasticity of demand positive or negative for the following pairs of items?a. Tennis rackets and tennis ballsb. Peanut butter and jellyc. Hot dogs and hamburgers*17. In 2001, X
Draw the Engel curves for the following goods: food, Hawaiian vacations, cashews, Kmart brand sneakers ($4.99/pr).
True or false: If each individual in a market has a straight-line demand curve for a good, then the market demand curve for that good must also be a straight line.Explain.
If you expected a long period of declining GNP, what kinds of companies would you invest in?
Do you think a college education at a specific school has a high or low price (tuition) elasticity of demand?
For a straight-line demand curve, what is the price elasticity at the revenue maximizing point?
To get the market demand curve for a product, why do we add individual demand curves horizontally rather than vertically?
Can the price-consumption curve for a normal good ever be downward-sloping?
Give two examples of what are, for most students, inferior goods.
Draw Engel curves for both a normal good and an inferior good.
Why is the quantity of education demanded in private universities much more responsive than salt is to changes in price?
Why does the quantity of salt demanded tend to be unresponsive to changes in its price?
Your local telephone company has offered you a choice between the following billing plans:Plan A: Pay $0.05 per call.Plan B: Pay an initial $2/wk, which allows you up to 30 calls per week at no
If you were president of a conservation group, which rate structure would you prefer the Gigawatt Power Company to use: the one described in Example 3.1, or one in which all power sold for $0.08/kWh?
Why are corner solutions especially likely in the case of perfect substitutes?
Explain why a consumer will often buy one bundle of goods even though he prefers another.
Construct an example of a preference ordering over Coke, Diet Coke, and Diet Pepsi that violates the transitivity assumption.
True or false: The downward slope of indifference curves is a consequence of the diminishing marginal rate of substitution.
True or false: If you know the slope of the budget constraint (for two goods), you know the prices of the two goods. Explain.
If the prices of all products are rising at 20 percent per year and your employer gives you a 20 percent salary increase, are you better off, worse off, or equally well off in comparison with your
How would the equilibrium price and quantity change in the market depicted below if the marginal cost of every producer were to increase by $2/pound? (Hint: Recall the vertical interpretation of the
Give an example of a market in which the allocative function of price is not very important.
When there is excess supply, why is any single seller able to sell all she wants to by offering only a small reduction below the current market price?
What is the difference between “a reduction in supply”and “a reduction in the quantity supplied”?
Give two examples of actions taken by the administration of your college or university whose effect is to prevent specific markets from reaching equilibrium. What evidence of excess supply or excess
The market price of this ticket is $75, but the most you could sell it for is only $50. Today you discover that Ani DiFranco will be giving a concert that same evening. Tickets for the Ani DiFranco
Suppose in Problem 11 the cost of RAM falls to $50 per gigabyte. How many gigabytes of memory should you purchase now? Suppose additionally that your benefit for an additional gigabyte of memory
Suppose that random access memory (RAM) can be added to your computer at a cost of $100 per gigabyte. Suppose also that the value to you, measured in terms of your willingness to pay, of an
You loan a friend $1000, and at the end of 1 year she writes you a check for $1000 to pay off this loan. If the annual interest rate on your savings account is 6 percent, what was your opportunity
Al and Jane have rented a banquet hall to celebrate their wedding anniversary. Fifty people have already accepted their invitation. The caterers will charge $5 per person for food and $2 per person
You are planning a 1000-mile trip to Florida. Except for cost, you are indifferent between driving and taking the bus. Bus fare is $260. The costs of operating your car during a typical 10,000-mile
Jamal has a flexible summer job. He can work every day but is allowed to take a day off anytime he wants. His friend Don suggests they go to the amusement park on Tuesday.The admission charge for the
Why should sunk costs be irrelevant for current decisions?
Why is the opportunity cost of attending college higher for a 50-year-old than for a 20-year-old?
Your roommate is thinking of dropping out of school this semester. If his tuition payment for this semester is nonrefundable, should he take it into account when making his decision?
How would you evaluate the negotiation? Did either party “win”? If so, which? If not, why not?
Near the end, Katherine suggests a potential solution (bonus sharing). Why didn’t she offer this earlier in the negotiation?
Despite strong attempts to get Katherine to budge, Alisa is unsuccessful in unfreezing the salary freeze. What would you have done at this point if you were Alisa? Why?
When Alisa implies that Katherine has been lying, Katherine appears defensive. How would you have responded to this accusation if you were Katherine? Why?
What did you think of Alisa’s threat to inform the press? What effect do you think this has on the negotiation outcome? Her relationship with Katherine?
To what degree did Katherine and Alisa demonstrate credibility? Explain, using examples of what the negotiators did or said before (presumably) or during the negotiation.
Do you agree with their approaches? Explain, and tie your answer to your beliefs about each party’s goal in the negotiation.
In what ways was this negotiation distributive and integrative? Explain, using specific behaviors to demonstrate Alisa’s and Katherine’s use of one or both approaches.

Showing 100 - 200 of 1369