Question (1) The value of the marginal product of an input is equal to the price of the input in the case of seeking profit maximization goal by business firm. Set the suited model to prove such statement? Question (2) Consider the following two probability distributions for sales:- Sales (Thousands of $) 50 60 70 80 90 Probability Distribution 3 (percent) 10 20 40 20 10 Probability Distribution 2 (percent) 10 15 more risky? D. What are the types of persons with respect to facing risk? 20 30 25 A. What are the expected sales for the two probability distributions? B. Calculate the variance & standard deviation for the both distributions which distribution is more risky? C. Calculate the coefficient of variation for the both distributions which distribution is Question (3) For the sake of developing the optimal rate advertising for a business firm, Dorfman Stern model has been developed: 1) Set the objective function of the model? 2) Define each variable introduced the function? 3) Set the first-order conditions for the optimization? 4) Discuss the main model results which are relevant guiding indicators of a business firm for its advertising activities? Question (4) An Article in The Wail Street Journal reported that large hotel chains, such as Marriott, are tending to reduce the number of hotels that they franchise to outside owners & increase the number the chain owns & manages itself. Some chains are requiring private owners of franchisees to make upgrades in their hotels, but they are having a difficult time enforcing the policy. Marriot says this upgrading is important because "we've built our name on Quality" A. What type of agency problem is involved here? B. Why would Marriott worry about the quality of the hotels it doesn't own but franchises? C. Give suggestions for solving or lessening such problem? Question (5) Gibe a brief summary of your paper Justify the choice of your topic? How to improve the efficiency of this course? Corpus Industry produces a product at a constant marginal cost in a specific market structure. The estimated price elasticity of the demand for its product is (Ed = - 10), and the advertising demand elasticity of the product is (Ead = 0.2 ). Determine the fraction of total sales that the firm's manager should spend on advertising at the profit maximization state? Calculate the value of Lerner index? Determine the type of market structure in which Corpus Industry is operating? If the marginal cost (MC) is equal to 10 what is the price (P) which should be charged by Corpus Industry manager to maximize the profit? 1- 2- 3- 4-