GCU ECN601 Full Course Latest 2019 April Question # 00602353 Subject: Education Due on: 06/21/2019 Posted On: 06/21/2019 06:40 AM Tutorials: 1 Rating: 4.6/5

ECN601 Economics

Week 1 Discussion

DQ1 Explain
why the consideration of opportunity costs may be very relevant to a firm. How
can opportunity costs affect a business decision? Use an example to support
your answer.

DQ2 Think
about a good or service for which you believe there has been a shift in demand
or supply. Explain the reasons behind the shift and how that has influenced the
equilibrium price.

ECN601 Economics

Week 2 Discussion

DQ1 In a
perfectly competitive market where there is virtually no product
differentiation, what do you think are the priorities or focus of a firm? How
could a firm increase profits?

DQ2 Explain
a situation you have observed (or read about) in which a firm made a decision
considering irrelevant costs or did not consider relevant costs. What was the
outcome of the decision, and what could have been done differently?

ECN601 Economics

Week 3 Discussion

DQ1 What
market structure best describes the environment within which your organization
operates? What challenges and opportunities would arise from higher and lower
degrees of government intervention?

DQ2 According
to Coase’s theory of the firm, why do firms exist? How do firms contribute to
the efficiency of the market economy in ways that networks of independent
contractors do not? How are the boundaries of the firm best established?

ECN601 Economics

Week 4 Discussion

DQ1 Identify
a personal economic decision that was driven by a behavioral bias rather than
by pure rational behavior. Given your understanding of behavioral economics,
how would your decision differ today?

DQ2 In
which cases would an organization benefit from using direct and indirect price
discrimination? Does market structure influence the capacity of the firm to use
price discrimination?

ECN601 Economics

Week 5 Discussion

DQ1 Read
“7 Easy Ways to Use Game Theory to Make Your Life Better,” by
Duronio. Reflect on your personal life experiences. Discuss a instance in your
life in which you used game theory to earn or save money. Did you realize you
were implementing game theory in the situation? How did the outcome benefit you
at that moment and in the future?

DQ2 Using
the Topic Material “Game Theory,” discuss your perspective on the use
of game theory. How do “Nash equilibrium” and the idea of one
“player” impacting another “player” within an organization
affect the economic decisions and growth of an organization?

ECN601 Economics

Week 6 Discussion

DQ1 Discuss
the importance of analyzing competition within an industry to better appeal to
potential candidates. How can an organization use incentives to ensure it
appeals to the employees it wants to hire?

DQ2 Discuss
how wages are determined in labor markets. Explain how a monopsony market
structure is affected by a price floor (minimum wage), and what is the effect
of the monopsony of the local economy?

ECN601 Economics

Week 7 Discussion

DQ1 Identify
one environmental factor or risk that affects the decision-making opportunities
within your organization. Provide a brief description of the concerns and
potential solutions for addressing the concerns or risks. Are there financial
requirements that must be considered when processing decisions within a
company?

DQ2 How
does the financial strength of an organization influence decision making and
outcomes?

ECN601 Economics

Week 8 Discussion

DQ1 Using
the concept of “carry trade,” explain how a decrease in U.S. interest
rates could affect the EUR/USD exchange rate. Given this change in exchange
rate, how would firms and customers be affected?

DQ2 How do
economists define a “bubble”? Provide an example of an asset market
that you think could be the next bubble and explain why. (Do not use the
examples cited in your textbook).

ECN601 Economics

Week 2 Assignment

Problems:
Chapters 4 and 5

Complete
the following problems from Chapters 4 and 5 in Managerial Economics: A Problem
Solving Approach. For each question, write 250?500 word explanation clearly
showing how you solved the problem.

Chapter 4:
Problems 4?2 and 4?6

Chapter 5:
Problems 5?4 and 5?5

APA style
is not required, but solid academic writing is expected.

This
assignment uses a rubric. Please review the rubric prior to beginning the
assignment to become familiar with the expectations for successful completion.

You are not
required to submit this assignment to LopesWrite.

ECN601 Economics

Week 4 Assignment

Case Study:
Generic Drug Pricing

Using the
New York Times article, “Defiant, Generic Drug Maker Continues to Raise
Prices,” conduct further research on the pricing strategies of generic
drug manufacturers. In 750?1,000 words, analyze the pricing strategies and
discuss the following:

Discuss the
pricing decisions of generic drug manufacturers.

Evaluate
the impact competitors and additional economic factors have on the results of
the generic drug pricing strategies. What factors contribute to the advantages
and disadvantages of various pricing strategies?

Discuss the
social and financial implications of generic drug pricing decisions for various
groups of stakeholders. What would be the socially optimum pricing strategy for
the United States? What would be the socially optimum pricing strategy
globally?

Prepare
this assignment according to the guidelines found in the APA Style Guide,
located in the Student Success Center. An abstract is not required.

This
assignment uses a rubric. Please review the rubric prior to beginning the
assignment to become familiar with the expectations for successful completion.

You are
required to submit this assignment to LopesWrite. Please refer to the
directions in the Student Success Center.

ECN601 Economics

Week 5 Assignment

Problems:
Chapter 15

Complete
the following Problems 15?1, 15?3, 15?4, and 15?6 in Chapter 15 in Managerial
Economics: A Problem Solving Approach. Ensure that you clearly show how you
solved these problems and provide a 250?500 word cumulative summary explaining
all problems.

APA style
is not required, but solid academic writing is expected.

This
assignment uses a rubric. Please review the rubric prior to beginning the
assignment to become familiar with the expectations for successful completion.

You are not
required to submit this assignment to LopesWrite.

ECN601 Economics

Week 6 Assignment

CLC –
Incentive Plan

This is a
Collaborative Learning Community (CLC) assignment.

Within your
CLC team, discuss your current organization’s employee incentives and
motivation strategies. Examine the individual organization’s compensation
challenges and industry competition. Based on this discussion, teams will
develop an incentive plan suitable for all participating members that
encourages an organizational culture that motivates employees and evaluates
their performance. Your incentive plan (1,000?1,250 words) must include:

An overview
of the organization for which your team is developing an incentive plan.

A
performance metric to monitor employee performance.

Motivation
strategies and techniques to appeal to employees.

Incentive
compensation to remain competitive within the industry.

Moral
hazard affecting employees and the organization.

Prepare
this assignment according to the guidelines found in the APA Style Guide,
located in the Student Success Center. An abstract is not required.

This
assignment uses a rubric. Please review the rubric prior to beginning the
assignment to become familiar with the expectations for successful completion.

You are
required to submit this assignment to LopesWrite. Please refer to the
directions in the Student Success Center.

ECN601 Economics

Week 7 Assignment

Problems:
Chapter 17

For this
assignment, you are required to complete Individual Problems 17?2 and 17?6 at
the end of Chapter 17 in Managerial Economics: A Problem Solving Approach. In
addition, you are required to complete Group Problem G17?1: Uncertainty. As you
are evaluating your current company, address the following decisions in your
response (500?750 words):

What
environmental factors and risks must be considered in the company’s
decision?making process?

Evaluate
cost factors influencing the company’s decision.

Determine
strategies that would provide value to the outcome your company is seeking
relating to this decision.

Prepare
this assignment according to the guidelines found in the APA Style Guide,
located in the Student Success Center. An abstract is not required.

This
assignment uses a rubric. Please review the rubric prior to beginning the
assignment to become familiar with the expectations for successful completion.

You are
required to submit this assignment to LopesWrite. Please refer to the
directions in the Student Success Center.

ECN601 Economics

Week 8 Assignment

Problems:
Chapter 11

Review
Group Problems G11?1: Exchange Rate Effect on Industry and G11?2: Exchange Rate
Effects on Your Firm, located at the end of Chapter 11 in Managerial Economics:
A Problem Solving Approach. Select one problem that relates to you and your
current position in the work environment. Complete your response in 750?1,000
words. Support your response with personal experiences or examples.

Alternate
Scenario: If you are in an industry that does not deal with any foreign exchange
transactions, use the petroleum industry for this assignment. Imagine that you
work for a domestic oil refinery, and answer either question G11?1 or G11?2.
You do not work for an oil producer, but rather for a refinery, which turns
crude oil into many different petroleum products, from jet fuel to gasoline,
which are then sold to world markets. You have the option of purchasing crude
oil from U.S. sources or from various foreign countries. You must purchase
crude oil in order to make products that you can sell in the United States or
in other countries.

Prepare
this assignment according to the guidelines found in the APA Style Guide,
located in the Student Success Center. An abstract is not required.

This
assignment uses a rubric. Please review the rubric prior to beginning the
assignment to become familiar with the expectations for successful completion.

You are
required to submit this assignment to LopesWrite. Please refer to the
directions in the Student Success Center.

ECN601 Economics

Week 6 Assignment

Peer-Evaluation
Form

Complete
the “Peer-Evaluation Form.” Points assigned to individuals in the
group will be prorated based on the peer-evaluation.

Group Member: List Names	Rating: 1–100	Comments: Must be completed for each team member.
1. Your Name
2.
3.
4.
5.
6.

ECN601 Economics

Week 4 Exam 1

1Use the
table provided to answer the following question. If hiring the fourth worker
increases total product by 50 units and the price of each unit is $15:

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The firm
should not hire the fourth worker as MR

The firm
should not hire the fourth worker as MR

Marginal
revenue equals $150.

The firm
should hire the fourth worker as MR>MC.

2The change
in quantity demanded derived from a change in price is:

The
movement along a demand curve

The
movement along a supply curve

A shift in
the demand curve

A shift in
the supply curve

3 The
difference between the minimum price the producer is willing to accept and the
price the producer actually receives for a product is referred to as:

Market
surplus

Market
shortage

Consumer
surplus

Producer
surplus

4At a price
for which quantity demanded exceeds quantity supplied, a __________ is
experienced, which pushes the price __________ toward its equilibrium value.

Surplus;
downward

Surplus;
upward

Shortage;
downward

Shortage;
upward

5The
opportunity cost of an action is:

Equal to
the marginal cost of an action

Equal to
explicit cost

Equal to
the cost (value) of the next best alternative forgone

The total
cost of an action

6An example
of a price floor is:

Minimum
wages

Rent
controls in New York

Both A and
B

None of the
above

7A
monopolistically competitive firm will tend to have a more elastic demand curve
than a monopolist because:

The
monopolist can more easily achieve abnormal profits.

The
monopolist makes a more “unique” product.

The
monopolistically competitive firm faces more competition.

Both B and
C

8Use the
table provided to answer the following question. If the firm hires eight workers,
the total fixed costs is:

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$600

$1,200

$1,000

$6,200

9Peter’s
Pizzeria sells both pizzas and soda. It wants to increase the sales of its
pizzas. Assuming that the pizza and the sodas are complements, which of these
strategies can it employ?

Increase
the price of the soda.

Decrease
the price of the soda.

Increase
the quality of the pizza

Both B and
C

10Use the
table provided to answer the following question. How many units should the profit
maximizing firm produce?

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1

2

3

4

11A car
dealership union negotiates a contract that dramatically increases the salaries
of all salesmen. If one of the salesmen is thinking of changing careers to be a
hardware salesman, his opportunity cost:

Would not
be affected

Of becoming
a hardware salesman would decrease

Of becoming
a hardware salesman would increase

None of the
above

12If the
cross-price elasticity of demand between two goods is negative, then:

As the
price of one good rises, the quantity demanded of the other good also rises.

The two
goods are rarely used together by consumers.

The two
goods are substitutes.

The two
goods are complements.

13In an
oligopoly, firms will tend to compete on the basis of price.

True

False

14An
increase in the price of a complement shifts the demand curve to the:

Right

Left

It does not
change the demand curve.

None of the
above

15If the
price elasticity of demand is 0.8 and the firm increases price, revenue will:

Increase

Decrease

Stay
constant

Become
zero, as they would lose all their customers

16A company
invested $400,000 in a technology that reduced the overall costs of production
by reducing their cost per unit from $2 to $1.85. Later, a manager has an
opportunity to outsource production to another company at a cost per unit of $1.75.
If you are the manager, you:

Should
consider the $400,000 as a sunk cost, not relevant to the decision.

Should
reduce his effort by ignoring any new developments and letting the production
run as it is.

Should ignore
the $400,000 fixed cost.

Both A and
C

17An
increase in the price of a substitute shifts the demand curve to the:

Right

Left

It does not
change the demand curve.

None of the
above

18A
business produces 5,000 units per month. It spends $12,000 on raw materials. It
pays wages of $20,000. Other costs include $50,000 for rent, paid by the month.
In order to break even, the selling price per unit will have to be:

$25.20

$16.40

$20.30

$28.00

19A firm
sells 1,000 units per week. It charges $70 per unit, the average variable costs
are $25, and the average fixed costs are $65. In the short run, the firm
should:

Shut down,
as the firm is making a loss of $15,000 per week.

Shut down,
as price is lower than average cost.

Continue
operating, as the firm is covering all the variable costs and some of the fixed
costs.

Shut down,
as it is cost-effective to pay off the remaining fixed costs.

20Which of
the following describes a firm?

Purchases
labor hours from workers.

Borrows
capital from investors.

Combines
labor and capital to create production, moving them from their low value use to
high value use.

All of the
above

21Jim saw a
decrease in the quantity demanded for his firm’s product from 8,000 to 6,000
units per week when he raised the price of the product from $200 to $250. What
is Jim’s own price elasticity of demand?

1.29

1.00

0.25

0.78

22Use the
table provided to answer the following question. What is the marginal revenue
from producing the fourth unit?

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90

50

0

180

23A manager
invests $20,000 in equipment that would help the company reduce it’s per unit
costs from $15 to $12. He expects the equipment to be in use for the next seven
years. After two years, he realizes that if he outsourced the production, the
unit cost would be $7 instead. At this point what should the senior manager do?

Charge the manager for the next five years of
depreciation

Write off
the equipment as sunk cost and allow for outsourcing since it is cheaper

Not allow
for outsourcing since the equipment is good for another five years.

None of the
above

24The
government decided to reduce taxes on fast-food to increase tax revenue. The
government assumes that fast-food products have:

An
inelastic demand

An elastic
demand

A demand
curve that is upward sloping

A unitary
elastic demand curve

25Which of
the following factors would shift the supply curve for ice cream to the right?

A new
cooling technology emerges.

The price
per unit increases.

The number
of producers in the market for ice cream increase.

Both A and
C

26A firm
sells 1,000 units per week. It charges $15 per unit, the average variable costs
are $10, and the average fixed costs are $25. In the long run, the firm should:

Shut down,
as the firm is making a loss of $10,000 per week.

Shut down,
as price is lower than average total cost.

Continue operating,
as the firm is covering all the variable costs and some of the fixed costs.

Shut down,
as it is cost effective to pay off the remaining fixed costs.

27Use the
table provided to answer the following question. If the firm hires five
workers, the average cost equals:

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$80

$1,000

Need more
information

$10

28Price
ceilings cause:

Some
suppliers to drop out of the market

A decrease
in the total production in the market

The
creation of black markets

All the
above

29A buyer
values a house at $525,000 and a seller values the same house at $485,000. If
sales tax is 8% and is levied on the seller, then what would be the lowest
price at which the seller would be willing to sell?

$527,000

$523,800

$525,00

$500,000

30In
general, the smaller the price elasticity:

The smaller
the responsiveness of price to changes in quantity.

The smaller
the responsiveness of quantity to changes in price.

The larger
the responsiveness of price to changes in quantity.

The larger
the responsiveness of quantity to changes in price.

ECN601 Economics

Week 7 Exam 2

Which of
the following would not be illegal according to the Robinson-Patman Act?

“Party
Packers” getting 10 cents off every pack of ribbon they buy after 1000
units

“Fred’s
Farms” offering 50 cents off a crate of strawberries to retailers to match
other suppliers with similar rates.

“Sam’s
Sandwiches” receiving 5 cents off per pound of cheese

All of the
above

2 The
optimal strategy in a Vickery auction is to:

Bid
aggressively.

Bid above
your value since you would be paying the second highest price.

Bid exactly
your value.

Bid below
your value.

3 In a
principal-agent relationship

The
principal wants the agent to act on her own behalf.

The agent
wants the principal to act on his behalf.

The
principal wants the agent to act on the behalf of others.

The agent
wants the principal to act on the behalf of others.

4 Compared
to simple pricing, price discrimination leads to:

Loss in
profits.

Increased
revenue.

Consumer
surplus being converted to producer surplus.

Both B and
C.

5 The
pricing rule MR=MC holds for:

All firms

Single
product firms

Multiple
product firms

None of the
above

6 Which of
the following is a violation of antitrust laws?

A firm
discussing/fixing price with its competitors.

Making
arrangements to stay out each other’s markets.

Merging
with the competitor to eliminate competition.

All of the
above

7 Nash
equilibrium is:

Where one
player maximizes payoff and the other does not.

When one
player’s strategy is the best response to the other player’s strategy.

Where the
outcome is always efficient.

Difficult
to determine.

8 What is
it called when each additional worker hired contributes successively smaller
amounts of output?

Diminishing
profitability

Diminishing
total product

Diminishing
marginal product

None of the
above

9 If the VP
of a product launch thinks that a particular product would be profitable, but
ended up launching an unprofitable product, this will be a:

Type I
error

Type II
error

Neither
Type I nor Type II error

False
positive

10 You
experiment by offering free warranties for your product in market A but not in
market B. Sales in Market A rise from 240 to 360 units per week while sales in
Market B rise from 410 to 430. The difference-in-difference estimate of the
effect of the free warranty is:

80 units

100 units

120 units

140 units

11 Indirect
price discrimination differs from direct price discrimination because:

In indirect
price discrimination, high value consumers can sometimes still get the low
price

In direct
price discrimination, firms do not have to worry about cannibalizing.

Direct
price discrimination encourages rivals to enter but indirect discrimination
does not.

There is no
difference between the two.

12 For
jointly owned substitute products, cannibalization leads to MR______MC.

Higher than

Lower than

Equals

None of the
above

13 Half of
all your potential customers would pay $10 for your product, but the other half
would only pay $8. You cannot tell them apart. Your marginal costs are $4. If
you set the price at $8, the expected profit is:

$3

$4

$5

$6

14 For
direct price discrimination to work effectively

The
low-valued customers should not be able to engage in arbitrage.

You need to
charge the same price to the different groups.

Both groups
should have the same elasticity of demand.

None of the
above

15 For a
production function with a diminishing, but positive, marginal product of
labor:

Output
increases at an increasing rate as more workers are employed

Output
increases at a decreasing rate as more workers are employed.

Output
declines as more workers are employed.

The effects
on marginal product are unknown.

16 Which of
the following is true?

Incentive
compensation imposes no risks on the agents and thus should not affect their
compensation.

Incentive
compensation imposes risk on the agent but need not be compensated for.

Incentive
compensation imposes risk on the agent for which the agent should be
compensated

Incentive
compensation is a bad idea

17 Jim has
a better chance of having his offer accepted, since the seller does not have
any outside offers.

Jim has a
better chance of having his offer accepted, since the seller does not have any
outside offers.

Jim has
lower chances of having his offer accepted, since the seller has more outside
offers.

The
disagreement value for the seller has increased

Only A and
C

18 The
general rule to increase profits when two close complementary brands are
jointly owned is:

Increase
prices for both brands.

Decrease
prices for both brands.

Increase
prices on one brand, and decrease prices it for the other.

Increase
prices on one brand, but keeping the prices of the second brand constant.

19 Which of
the following is a screen against adverse selection?

Insurance
companies require homeowners to have smoke detectors

Rearview
cameras in cars.

Installing
engine monitors to track driving habits of the insured.

Prospective
secretaries must take a typing test before being hired.

20 Use the
table provided to answer the following question. If the groups are of equal
size and the firm can only set one price, how should the firm price the
high-end wok?

Price low
and sell to both groups.

Price high
and sell only to the professional chefs.

Price low
and sell only to the home users.

All of the
above

21 An HVAC
company is selling heating and cooling equipment. It has separate sales and
marketing units. The marketing unit would want to:

Price
aggressively to ensure sales are made.

Price less
aggressively to ensure that profitable sales are made.

Price at
cost to maximize sales.

None of the
above

22 Moral
hazard implies that:

Insured
individuals exercise less care because they have less incentive to do so.

Insured
individuals exercise more care because they have less incentive to do so.

Insured
individuals exercise more care because they have more incentive to do so.

Insured
individuals exercise less care because they have more incentive to do so.

23 Which of
the following is not an example of risk aversion?

You lock
your garage when you have expensive workshop tools.

You are
more careful when you buy a more expensive car.

Individuals
tend to gamble more with their money when the future is uncertain.

You only go
swimming when the lifeguard is on duty.

24 The
tradeoff between ____ and _____ is represented as the labor supply curve.

Work and
wages

Work and
leisure

Wages and
productivity

Technology
and wages

25 Viceroy
Vacations is deciding on how to price its vacation packages. Which of the
following strategies would you suggest?

Price the
flight, hotel, and car separately.

Advertise
them as an all-inclusive vacations.

Give them
away as free vacations to everyone.

Close down
your company. No one goes on vacations anymore.

26 Use the
table provided to answer the following question. If the firm decides to only
offer the high-end wok, what is the highest price it can charge the chefs?

$70

$80

$90

$100

27 In a two-person
repeated game, a tit-for-tat strategy is:

When each
player pursues his or her own self-interest without any cooperation.

When
players start off as noncooperative and then cooperate when one or both players
show interest in colluding.

When players
start by cooperating and then mimic the other player’s last move.

When
neither player defects.

28 Three
possibilities are equally likely and have payoffs of $6, $12, and $24. The
expected value is:

$4

$14

$6

$7

29 Tom
wants to avoid any accidents on the work floor of his factory. If an accident
does occur, it would cost him $500,000 in damages. Installing safety equipment
would decrease the probability of an accident occurring from 20% to 10%.
However, the equipment costs $20,000 to install. Would Tom install the safety
equipment?

Yes,
because it costs him less than it is worth.

Yes,
because it costs him more than it is worth.

No, because
it costs him more than it is worth.

No, because
it costs him less than it is worth.

30 Tom
wants to avoid any accidents on the work floor of his factory. If an accident
does occur, it would cost him $500,000 in damages. Installing safety equipment
would decrease the probability of an accident occurring from 20% to 10%.
However, the equipment costs $20,000 to install. What is his expected loss
after installing the safety equipment?

$20,000

$50,000

$100,000

$125,000