1) Discuss the owner-manager conflict within the firm. Provide two real world manifestations of the conflict. Owner-manager conflicts finds it basis on the self-interested behaviors of managers‚ owners and shareholders. Firm managers may have personal goals that conflict with the owner’s goals of maximizing shareholder wealth. Potential conflicts occur when managers seek to maximize their own utility at the expense of the firm’s shareholders. Conflict between owners and managers typically arise
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The History of Tourism Travel begins to occur out of a sense of adventure and curiosity. 1. The Empire Era(4850B.C.- 715B.C) Egyptians travel to centralized government locations. Greeks develop common language and currency‚ and travelers’ services emerge as city-states become destinations. Romans improve roads‚ the legal system‚ and inns to further travel for commerce‚ adventure‚ and pleasure. These empires started the necessities that encourage travel Affluent population with time
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ECM002 Business Economics Instructions: Please answer four out of the following six following questions: Question 1. Suppose Cola- Sol and Miniranda are the only two companies producing a particular type of cola drink in the soft drink industry. Both companies are considering launching a new drink with a light lemon twist. They can launch their products either at a low price or at a high price. The expected net payoffs are the following: If both companies choose a high price strategy‚ Cola-
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no need to say that‚ in according to meet these needs of the guests and surprise them‚ Ciragan Palace Kempinski needs high qualified employees who can maintain the Kempinski standards‚ who can manage stress and who are flexible. However‚ hospitality and tourism industry has a huge issue of finding and keeping employees. Employee turnover is a growing issue in the
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transaction cost economics. Some organizations struggle whether or not to outsource the IT division. The company has two choices for any economic activity: going outside to market or perform the activities in-house. In any case‚ the cost of the activity is divided into production costs‚ and transaction costs. Production costs in the case of the in-house division‚ includes hardware and software‚ whereas the transaction cost‚ which are the activities related to implementing the economic activity includes
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not be graded‚ but will serve only as practice material accurately representing the content and format of the exam. 1.) Walter used to work as a high school teacher for $40‚000 per year but quit in order to start his own painting business. To invest in his painting business‚ he withdrew $20‚000 from his savings‚ which paid 3 percent interest‚ and borrowed $30‚000 from his uncle‚ whom he pays 3 percent interest per year. Last year Walter paid $25‚000 for supplies and had revenue of $60‚000. Walter asked
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NMIMS Global Access School for Continuing Education (NGA-SCE) Course: Business Economics SEM – I 1. Calculate Elasticity in the following cases: a) Assume that a business firm sells a product at the price of Rs 500. The firm has decided to reduce the price of the product to Rs 400. Consequently‚ the demand for the product is raised from 20‚000 units to 25‚000 units. Calculate the price elasticity of demand. ANSWER A: PRICE ELASTICITY OF DEMAND: MEANING: Price elasticity of demand
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$500‚000 x 14% = $70‚000 Explicit Costs: What is paid for products/services = $80‚000 Total Economic Costs: Implicit Costs + Explicit Costs = $70‚000 + $80‚000 = $150‚000 b) Economic Profit: Total Revenues – Total Economic Cost = $175‚000 - $150‚000 = $25‚000 c) Accounting Profit: Total Revenues – Explicit Costs = $175‚000 - $80‚000 = $95‚000 d) New Implicit Costs = $500‚000 x 20% = $100‚000 Economic Profit: $175‚000 – ($100‚000 + $80‚000) = $ (5‚000) Chapter Two Technical Problem 1 Qd
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Accounts. Nairobi‚ Kenya‚ 1990. Telecommunications Union‚ Yearbook of Common Carrier Telecommunication Statistics. 21st edition. Geneva: International Telecommunications Union‚ 1994. Kenya National Assembly Official Record (Hansard) 15th November 2006 Business Daily Thursday 30th June‚ 2011 ‘Corporate News’ Ministry of Information and Communications Strategic Plan 2006- 2010. Kenya’s Information and Communications Technology Sector Report 2005 Kenya Communication Act 1998 Kenya Information and Communications
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All Rights Reserved 2– 2 CLASSIFICATION OF GOODS AND SERVICES Free goods are goods that have no production cost. Public goods are goods that are for common use and will benefit everyone. Economic goods are goods of value that can be seen and touched. Economic services are intangible things (with value) that cannot been seen or touched. All Rights Reserved 2– 3 LAW OF DEMAND Law of demand states that the higher the price of a good‚ the lower is the quantity
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