Exam 10: Organizing Production

Use the information below to answer the following questions. Fact 10.3.1 Executive Pay Executive compensation, based on performance, can theoretically constrain pay, but companies are paying their top executives more and more. The median compensation of a CEO in 2013 was $13.9 million, up 9 percent from 2012 Source: CNBC, April 28, 2014 -Refer to Fact 10.3.1.Paying executives with stock will

Flora's Flowers bought a new van last year for $10,000.It can now sell the van for $8,500.To buy this year's model of the same van it would have to pay $11,000.What is the implicit rental rate using the car for one year at a zero percent interest rate?

The four-firm concentration ratio tells us the percentage of ________ for the four largest firms in an industry.

Typical examples of a partnership would include which one of the following?

A firm that is technologically efficient

One difference between perfect competition and monopolistic competition is

A market structure where a small number of firms compete occurs in

Federal Express enters into contracts with independent truck operators who offer FedEx service and who are rewarded by the volume (cubic feet)of packages they carry. FedEx does not hire more independent drivers because

Which of the following is part of a firm's opportunity cost of production? I. wages II. utility costs III. interest on a bank loan IV. interest forgone on funds used to buy capital equipment

Use the information below to answer the following questions. Fact 10.3.1 Executive Pay Executive compensation, based on performance, can theoretically constrain pay, but companies are paying their top executives more and more. The median compensation of a CEO in 2013 was $13.9 million, up 9 percent from 2012 Source: CNBC, April 28, 2014 -Refer to Fact 10.3.1.CEO compensation schemes are designed to solve

The difference in the market value of a new van owned by a firm and the market value of the same van one year later is

The Herfindahl-Hirschman Index (HHI)for a local water supplier is

The Herfindahl-Hirschman Index is calculated as

Most establishments in Canada

Firm strategies for coping with the principal-agent problem are

Use the table below to answer the following questions. Table 10.2.1 -Refer to Table 10.2.1, which shows three methods for making photon torpedoes.Which method is technologically efficient?

A firm with two or more owners who have unlimited liability is

In a partnership, each partner is legally liable for

The major factor determining whether a firm or a market coordinates a particular set of activities is

Firm A can produce a unit of output with 10 hours of labour and 5 units of capital.Firm B can produce a unit of output with 5 hours of labour and 10 units of capital.Firm C can produce a unit of output with 10 hours of labour and 10 units of capital.If the prices of labour and material are $10 and $5, respectively which firm is technologically efficient?