Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator who chooses the best proposal (effectively giving one side or the other $1 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $200,000) who is effective at preparing the proposal in the best light. If neither hires a lawyer or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win three-quarters of the time. Diagram this simultaneous-move game. What is the Nash equilibrium of the game? Would the sides want to ban lawyers?
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- QUESTION 1 A delegation transfers contract duties, but the delegator remains liable for proper performance. O True O False QUESTION 2 Generally, if an agreement is completely executory, the minor's failure to act after reaching the age of majority is considered disaffirmance. O True O False QUESTION 3 When a minor misrepresents their age, all jurisdictions will allow a minor to disaffirm the contract even if they cannot return the consideration that they received. O True O False QUESTION 4 The obligee is the person to whom a contractual duty is owed. O True O False QUESTION 5 The party to whom rights under a contract are transferred is called the obligor. O True O FalseWith reference to the data provided in the table, make any recommendations for choosing the preferred alternative by using (a) dominance, (b) satisficing, (c) disjunctive lexicography. Use all the methods separately. Click the icon to view the table for the data for the alternatives discussed. a. Choose the correct answer below. O A. Alternative "Vendor II" is dominated only by alternative "Vendor III" and should be eliminated. OB. None of the alternatives dominates the other. O C. Alternative "Vendor III" is dominated only by alternative "Vendor II" and should be eliminated. OD. Alternative "Vendor I" is dominated only by alternative "Vendor III" and should be eliminated. ancial calculator More Info Attribute A. Reduction in throughput time B. Flexibility C. Reliability D. Quality E. Cost of system (PW of life-cycle cost) Pairwise comparisons: Vendor / 60% Good Excellent Good $270,000 C……. 1.A C Alternative Vendor // 70% Excellent Good Excellent $300,000 6.B> D 7.BThe figure below shows the labour discipline model with a variety of isocost lines and a best response function. Based on this figure, which of the following statements are correct? Effort per hour, e 0.7 0.5 0 Lower cost of effort (but infeasible) 10 12 Reservation wage Select all the correct answers. Minimum feasible cost MRS-MRT Hourly wage, w (S) Point A is the result of a sequential game Worker's best response curve Higher cost of effortWhich of the following contractn fall within the statute of frauds? O Any contract that requires a co-maker or a co-signer OAny contract involving real property Any contract for a loan over $5,000 that includes a repayment term of more than one year OA contract to marry None of the aboveHelp Save Suppose a corporation has two subsidiaries, one of which is unregulated and sells all of its output to the other, regulated subsidiary. Permitted profits at the regulated subsidiary are equal to 10 percent of total costs. The initial profit picture for the subsidiaries is provided in the table below: Unregulated Subsidiary Regulated Subsidiary Total $ 650,000 N/A revenue $ 350,000 $300,000 $1,000,000 $ 100,000 Total costs Total profit If the unregulated subsidiary doubles its selling price to the regulated subsidiary, what are the new profits at Instructions: Enter your responses as a whole number. (a) The unregulated subsidiary? profit = $ (b) The regulated subsidiary? profit = $ & 23 24 8. *00 w/ %S4A young software genius is selling the rights to a new video game he has developed. Two companies have offered him contracts. The first contract offers 8,000 at the end of each year for the next five years, and then 18,500 dollars per year for the following 10 years. The second offers 10 payments, starting with 9,500 at the end of the first year, 12,500 dollars at the end of the second year, and sof forth, increasing by G dollars each year (i.e., the tenth payment will be (9,500 dollars +9 x G dollars). Assume the genius uses a MARR of 9%. Which contract should the young genius choose? Use a present worth comparison and least common multiple of repeated lives {Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar). For one life of project one, the present worth is: Number For repeated lives of project one, the present worth is: For one life of project two the present worth is: Number For repeated lives of project two, the present…Creative Homework!Shorr Project Assume that you area marketing consultant for one of the clients in ilem14.16. You believe that the business would benefitfrom nontraditional marketing. Develop seve<al ideasfor social-media tactics that you feel would be successful for the clientDuring your first month as an employee atGreenfield Industries (a large drill-bit manufacturer),you are asked to evaluate alternatives forproducing a newly designed drill bit on a turningmachine. Your boss’ memorandum to you haspractically no information about what the alternativesare and what criteria should be used. The same taskwas posed to a previous employee who could notfinish the analysis, but she has given you the followinginformation: An old turning machine valued at $350,000exists (in the warehouse) that can be modified for thenew drill bit. The in-house technicians have givenan estimate of $40,000 to modify this machine, andthey assure you that they will have the machine readybefore the projected start date (although they havenever done any modifications of this type). It is hopedthat the old turning machine will be able to meetproduction requirements at full capacity. An outsidecompany, McDonald Inc., made the machine sevenyears ago and can easily do the same…You are managing sports apparel sales. The way contracts are writlen, you purchase the rights to buy a fixed block of copyrighted materials for a negotiated price for a given yoar. You then sell these materials through your channels and try to make the moat possible. Apparel sales are automated through online channels so the additional cost of selling a given unit is negligible. In other words, the cost structure is relatively fixed no matter how many units you sell. What is an aporopriate optimization target for this type of cost structure and what will elasticity equal if you optimize prices well?Proposals must be written honestly because Earning a good reputation does not matter .a O To avoid legal trouble from breach-of-contract .bQ It is unethical .c O None of the above .d O slisl iEach time a song is played on the radio, the record company and the songwriter are paid a royalty of $0.30.Of the total, 75% goes to the company and the rest to the writer. If on a network of 50 radio stations, a certainsong is played 4 times a day during the first week and then 20 times a day for the next three weeks, how muchdoes the network owe in royalties for the four weeks? How much do the record company and the songwriterreceive eachQ59 Assume that Cronos Group, a nondiscriminating monopolist of cannabis products finds that it can sell its 82nd unit of output for $12. We can surmise that the marginal Multiple Choice revenue of the 82nd unit is less than $12. revenue of the 82nd unit is also $12. revenue of the 82nd unit is greater than $12. cost of the 82nd unit is also $12. cost cannot be calculated from the data given.SEE MORE QUESTIONS