Exam 10: Organizing Production

In a corporation, the managers are the stockholders'

Methods for making 2,000 CDs per day -In the table above, which method is NOT technologically efficient?

Economies of scope are cost reductions achieved by

A firm that has limited liability is classified as a

Which of the following is true?

It was more than a century ago that an engineer named Frederick Taylor walked into factories and starting timing workers with a stop watch. He dissected their movements, and organized them more efficiently. The monitoring tool, the 21st century equivalent of Taylor's stopwatch, is the computer. Those of us who use them produce rivers of data describing the hours of our work day. Suppose modern firms pay employees based on the quantity of work completed each day as monitored through computers by managers. How would this solve the principal-agent problem?

Greg, a landscaper, is planning on opening his own landscaping company. He currently earns $40,000 per year working for his uncle but he will need to quit that job. He plans to use $10,000 in savings to pay for the equipment he needs, though even after use he could sell the equipment for what he paid, $10,000. The current interest rate on savings is 5 percent. What is the total opportunity cost incurred by Greg in running his own business?

If instead of working on his own as a consultant making $25,000, Joe takes a job at a bank, the $25,000 is

Techniques for making 100 automobiles -The table above shows three production methods to produce 100 automobiles per day. If the price of labor is $20 per unit and the price of capital is $100 per unit, which of the three methods is economically efficient?

Which of the following factors helps explain limitations of concentration measures?

-The table above shows sales of the firms in the pet food industry. What type of market is this?

What is the principal-agent problem as applied to corporations?

You have just been named President and Chief Executive Officer at the StrideRite Shoe Corporation. This appointment places you in the role of ________ to lower managers and ________ to the stockholders.

Coca Cola and Pepsi, which together account for about 85 percent of the soft drink market, are best described as being in

The Herfindahl-Hirschman Index for a monopoly is

If the Herfindahl-Hirschman Index for an industry is 8,528, is the industry competitive or concentrated?

Technological efficiency occurs when the firm produces a given output

-The table above shows sales of the firms in the pet food industry. The Herfindahl-Hirschman Index in the industry is

-The table above shows sales of the firms in the pet food industry. The four-firm concentration ratio in the industry is

The maximum value that the Herfindahl-Hirschman Index can attain is