Applied Aproblems
Applied Problems – Week 1
AP‐1: Which costs are pertinent to economic decision making? Which costs are not relevant? ©2009 McGraw‐Hill Irwin. Used with permission from the publisher. Brickley, J. A., Smith, C. W., & Zimmerman, J. L. (2009).
Managerial economics and organizational architecture (RQ 2‐1, p. 56). Boston: McGraw‐Hill Irwin.
AP‐2: Textbook – Chapter 1, Applied Problem 2 (p. 32) AP‐3: Textbook – Chapter 2, Applied Problem 1 (p. 83) AP‐4: Textbook – Chapter 2, Applied Problem 4 (p. 83) AP‐5: The Solace Company has an inventory of steel that it originally purchased for $20,000. It currently has an offer to sell the steel for $30,000. Should Solace's management agree to sell?
Explain.
©2009 McGraw‐Hill Irwin. Used with permission from the publisher. Brickley, J. A., Smith, C. W., & Zimmerman, J. L. (2009).
Managerial economics and organizational architecture (RQ 2‐3, p. 56). Boston: McGraw‐Hill Irwin.
AP‐6: Textbook – Chapter 2, Applied Problem 5 (p. 84) AP‐7: Employees at a department store are observed engaging in the following behavior: (a) they hide items that are on sale from the customers, and (b) they exert little effort in designing merchandise displays. They are also uncooperative with one another. What do you think might be causing this behaviour and what might you do to improve the situation? ©2009 McGraw‐Hill Irwin. Used with permission from the publisher. Brickley, J. A., Smith, C. W., & Zimmerman, J. L. (2009).
Managerial economics and organizational architecture (RQ 2‐10, p. 57). Boston: McGraw‐Hill Irwin.
AP‐8: Suppose that the U.S. government caps the price of milk at $1.00 per gallon. Prior to the cap milk sold for $1.00 per gallon. Picture the effects of the price cap using a supply and demand graph. Explain how the cap affects consumers and producers. ©2009 McGraw‐Hill Irwin. Used with permission from the publisher. Brickley, J. A.,
AP‐1: Which costs are pertinent to economic decision making? Which costs are not relevant? ©2009 McGraw‐Hill Irwin. Used with permission from the publisher. Brickley, J. A., Smith, C. W., & Zimmerman, J. L. (2009).
Managerial economics and organizational architecture (RQ 2‐1, p. 56). Boston: McGraw‐Hill Irwin.
AP‐2: Textbook – Chapter 1, Applied Problem 2 (p. 32) AP‐3: Textbook – Chapter 2, Applied Problem 1 (p. 83) AP‐4: Textbook – Chapter 2, Applied Problem 4 (p. 83) AP‐5: The Solace Company has an inventory of steel that it originally purchased for $20,000. It currently has an offer to sell the steel for $30,000. Should Solace's management agree to sell?
Explain.
©2009 McGraw‐Hill Irwin. Used with permission from the publisher. Brickley, J. A., Smith, C. W., & Zimmerman, J. L. (2009).
Managerial economics and organizational architecture (RQ 2‐3, p. 56). Boston: McGraw‐Hill Irwin.
AP‐6: Textbook – Chapter 2, Applied Problem 5 (p. 84) AP‐7: Employees at a department store are observed engaging in the following behavior: (a) they hide items that are on sale from the customers, and (b) they exert little effort in designing merchandise displays. They are also uncooperative with one another. What do you think might be causing this behaviour and what might you do to improve the situation? ©2009 McGraw‐Hill Irwin. Used with permission from the publisher. Brickley, J. A., Smith, C. W., & Zimmerman, J. L. (2009).
Managerial economics and organizational architecture (RQ 2‐10, p. 57). Boston: McGraw‐Hill Irwin.
AP‐8: Suppose that the U.S. government caps the price of milk at $1.00 per gallon. Prior to the cap milk sold for $1.00 per gallon. Picture the effects of the price cap using a supply and demand graph. Explain how the cap affects consumers and producers. ©2009 McGraw‐Hill Irwin. Used with permission from the publisher. Brickley, J. A.,