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Monopoly and Competition.

When is an industry competitive and when is it monopolistic? Read the article below about Google and its "monopolistic" tendencies. http://online.wsj.com/article/SB124156244115989189.html 1) All of you have used Google. Do you think it's anticompetitive? Why or why not? 2) Do you feel you have a good substitute product

basic microeconomic theory

Please answer the following three questions from the perspective of basic microeconomic theory as applied to the world of buying and selling goods and services. Keep in mind that business are both sellers of goods and services and buyers of goods and services such as labor services and goods and services supplied by other busin

Hybrid and Derivative Securities

Please see the attachment. JLB Corporation is attempting to determing whether to lease or purchase research equipment. The firm is in the 40% tax bracket, and its after-tax cost of debt is currently 8%. The terms of the lease and of the purchase are as follows: Lease- Annual end-of-year lease payments of $25,200 are require

Profit Maximization

You have an exclusive contract with Major League Baseball to manufacture Dodgers baseball jerseys and sell them in two markets: Los Angeles and Brooklyn. You produce all the jerseys in a single factory located in Seattle. Your total cost function associated with producing the baseball jerseys is c(Q)=Q2+400 where q is the total

Noise and smell externalities

Suppose Smith owns and works in a bakery located next to an outdoor cafe owned by Jones. The patrons of the outdoor cafe like the smell that emanates from the bakery. When Smith leaves his windows open, the cafe faces the demand curve P=30-0.2Q, while when the windows are closed, demand is given by P=25-0.2Q. However, Smith

Lease or buy decisions

You have been asked to evaluate a lease-purchase investment on a piece of equipment with a three-year MACRS depreciable life (33%-45%-15%-7%). The cost of the equipment is $100,000 plus $15,000 for transportation and $10,000 for installation. Your bank will finance the investment for three years at prime plus 130 basis points.

Net Advantage to Lease (NAL)

Buster's Beverages is negotiating a lease on a new piece of equipment that would cost $100,000 if purchased. The equipment falls into the MACRS 3-year class, and it would be used for 3 years and then sold, because the firm plans to move to a new facility at that time. The estimated value of the equipment after 3 years is $30,000

Present Value & Annual Dividend

What is the present value of a contract that promises to make year end payments to you of $100 for the next 20 years if the interest rate is 5%? The level payments (PMT) are $100 and we know the interest rate and the duration of the contract. Suppose you are willing to pay $30 today for a share of stock which you will expec

Discrimination Legislation

Affirmative Action is one of the most contentious issues; its intent and the discriminatory result of applying it in practice has become a major issue in today's workforce. 2 pages The Web site is as follows: * http://www.latimes.com/news/opinion/la-oe-westfaulcon24-2009apr24,0,5548886.story * What is Affirmative

Graph

Week Five Assignment 2 Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is contracted out to office maintenance firms, and both technology and labor requirements are very basic. Supply and demand conditions in this perfectly competitive service market in New Y

Conceptual and Computational Questions

1. Identify whether each of the following transactions involves spot exchange, contract, or vertical integration. a. Barnacle, Inc., has a legal obligation to purchase 2 tons of structural steel per week to manufacture conveyor frames. b. Exxon-Mobil uses the oil extracted from its wells to produce raw polypropylene, a type of

Airline Industry

Please assist me with a 400 to 450 word essay that will provide a brief history of the airline industry, plus an industry overview, and a SWOTT analysis of the airline industry. Please include references.

Hedging commodities and exchange rate

Please help me figure out the following hedging problems. Problem 1: Hedging Commodities Bubbling Crude Corporation, a large Texas oil producer, would like to hedge against adverse movement in the price of oil because this is the firm's primary source of revenue. What should the firm do? Provide at least two reasons why it

What position should the fund manager take to hedge exposure to the market over the next two months? Calculate the effect of your strategy on the fund manager's returns if the index in two months is 700, 800, 900, 1,000 and 1,100.

A fund manager has a portfolio worth $100 million with a beta of 1.20. The manager is concerned about the performance of the market over the next two months and plans to use three-month futures contracts on the S&P 500 to hedge the risk. The current index level is 850 and one futures contract is on 250 times the index (i.e., the

Buying a home vs renting

The real estate agent tells the Bergholts that if they don't care to purchase, they might consider renting. The rental option would cost $1,400/month plus utilities estimated at $220 and renter's insurance of $25/month. The Bergholts believe that neither of them is likely to be transferred to another location within the next fiv

QUESTIONS AND ANSWER

Your local city is trying to attract a new NASCAR race track. As part of the package of incentives for luring the facility's builders, the city is offering an economic subsidy of $500,000 to help build the track. You are writing a letter to the editor of your local paper either supporting or criticizing the proposed $500,000 sub

Which process is the best choice?

The firm has $150,000 to invest in the spot, forward, or options markets. The spot rate is $1.2622 to the euro, and in 12 months, the forward rate is $1.2905 to the euro. However, this leader is sure that the exchange rate in 12 months will be $1.33 to the euro. Explain how she can speculate on the belief that the euro wil

How would you advise the company to handle the repatriation?

Scenario: Primetime Systems, Inc. now has total worldwide revenues of over $820 million forecast for this coming year. You have operations in the United States of $450 million with a 12% ROS (return on sales), operations in Germany of ?200 million with an a return on sales (ROS) of 11%, and operations in Shanghai,

Saving Species

Please answer the 5 questions below: Saving Species There is a dilemma in wildlife-habitat management: is the correct course to keep timber cutting to an absolute minimum thereby saving all the endangered creatures, or to allow some cutting with the result that a few of the species are sacrificed? The increasingly co

Finance: Loan Scenarios: Midland Chemical Co.

Midland Chemical Co. is negotiating a loan from Manhattan Bank and Trust. Thesmall chemical company needs to borrow $500,000.The bank offers a rate of 8¼ percent with a 20 percent compensating balancerequirement, or as an alternative, 9¾ percent with additional fees of $5,500 to coverservices the bank is providing. In either c

Who Should Draft a Union Contract in Game Theory?

The UAW labor contract with General Dynamics expired in October 2001. In the months preceding the expiration date, bargaining teams for the UAW and General Dynamics met to negotiate a new contract. All contracts must be ratified by the union members. Some of the many issues on the table included job security, health benefits,

Production cost functions

1.The chief economist for Argus Corporation, a large appliance manufacturer, estimated the firm's short-run cost function for vacuum cleaners using an average variable cost function of the form. AVC= a + bQ+ cQ^2 (the 2 is suppose to be exponent) Where AVC=dollars per vacuum cleaner and Q=number of vacuum cleaners produced e

Calculating Worth of a contract and Perpetuity

The Publicity agents for the Winterpeg Blue Strikers announce the signing of a quarterback, Shane Doe. They say that the contract is worth CAD 1 million and will be paid in 20 installments of $50000 per year starting one year from now and with one new installment each year for the next twenty years. The contract contains a claus

Futures and Options

Present equations in words 1. Look at the option quotes: Option trading prices a. What is the closing price of the common stock of SINGLE Systems? b. What is the highest strike price listed? c. What is the price of a December 20 call option? d. What is the price of a January 22.50 put option? 2. Assume a stock is se

Economics

Select a country other than one in North America.Prepare a 775 word paper in which you compare and contrast marketing in your selected country and in the United States. In your comparison, be sure to analyze the marketing environments of each country including, but not limited to cultural, political, legal, and economic influenc

International Economics

1. Implication of IRP. Assume that interest rate parity exists. You expect that the one-year nominal interest rate in the U.S. is 7%, while the one-year nominal interest rate in Australia is 11%. The spot rate of the Australian dollar is $.60. You will need 10 million Australian dollars in one year. Today, you purchase a one-yea

Is the investor position well hedged? What is your advice to the investor?

Suppose you are a financial advisor to an investor whose portfolio consists of 400 shares of Delta Cruise Inc. stock and 10 put options on the same stock. The risk free rate is 6%, time to maturity is six months, exercise price and stock price are both at $82, and the market observed put price is $4.56. The stock does not pay ou