BUSI 620 Week 5 Questions for Critical Thinking 5

BUSI 620 Week 5 Questions for Critical Thinking 5

Business 620

Critical Thinking Five

 

Salvatore’s Chapter 10:

a) Discussion Questions: 2,3 and 8.

b) Problems: 1 and 5.

 

Froeb and McCann’s Chapter 10:

a)      Individual problems: 10-4.

 

Salvatore’s Chapter 11:

a) Discussion Questions: 11,12 and 13.

b) Problems: 2, 6, and 10.

 

 

Froeb and McCann’s Chapter 15:

a) Individual problems: 15-4 and 15-5.

 

Discussion Question 2: (a) What are the advantages of the Herfindahl index over concentration ratios in measuring the degree of concentration in an industry? (b) What is the disadvantage of both?

DQ3: What is the difference between limit pricing and contestable markets?

 

Discussion Question 8: In what way does OPEC resemble a cartel? How successful was it?

Problem 1: Find the Herfindahl index for an industry composed of (a) three firms—one with 70 present of the market, and the other two with 20 and 10 percent of the market, respectively; (b) one firm with a 50 percent share of the market and 10 other equal-sized firms; (c) 10 equal-sized firms.

Problem 5: Starting with the reaction functions of duopolists A and B from Problem 4, find the Cournot solution algebraically.

Froeb and McCann’s Chapter 10:

a) Individual problems: 10-4.

Individual problem 10-4: Examine the US passenger airline industry using the Five Forces. Is this an attractive industry? Why or why not?

Salvatore’s Chapter 11:

a) Discussion Questions: 12 and 13.

b) Problems: 2, 6, and 10.

DQ11: Do the duopolists in a Cournot equilibrium face a prisoners’ dilemma? Explain.

Discussion Question 12: How did the 1971 law that banned cigarette advertising on television solve the prisoners’ dilemma for cigarette producers?

Discussion Question 13: (a) What is the meaning of tit-for-tat in game theory? (b) What conditions are usually required for tit-for-tat strategy to be the best strategy?

Problem 2: From the following payoff matrix, where the payoffs are the profits or losses of the two firsts, determine (a) whether firm A has a dominant strategy, (b) whether firm B has a dominant strategy, (c) the optimal strategy for each firm, and (d) the Nash equilibrium, if there is one.

Problem 6: Explain why the payoff matrix in problem 1 indicates that firms A and B faces the prisoner’s dilemma

Problem 10: Given the following payoff matrix, (a) indicate the best strategy for each firm. (b) Why is the entry-deterrent threat by firm A to lower the price credible to B? (c) What could firm A do to make its threat credible without building excess capacity?

Froeb and McCann’s Chapter 15:

a) Individual problems: 15-4 and 15-5.

Individual problem 15-4: The following represents the potential outcomes of your first salary negotiation after graduation: Assuming this is sequential move game with the employer moving first, indicate the most likely outcome. Does the ability to move first give the employer an advantage? If so, how? As the employee, is there anything you could do to realize a higher payoff?

Individual problem 15-5: Every year, management and labor renegotiate a new employment contract by sending the 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 the cost of 200,000) who is effective at preparing the proposal in the best light. If neither hires lawyers or if both hire lawyers, each side can expect to with about half of the time. If only one side hires a lawyer, it can expect to win three-quarters of the time.

a) Diagram this simultaneous move game

b) What is the Nash Equilibrium of the game?

c) Would the sides want to ban lawyers?

Important information for writing discussion questions and participation

Welcome to class

Hello class and welcome to the class and I will be your instructor for this course. This is a -week course and requires alot of time commitment, organization, and a high level of dedication. Please use the class syllabus to guide you through all the assignments required for the course. I have also attached the classroom policies to this announcement to know your expectations for this course. Please review this document carefully and ask me any questions if you do. You could email me at any time or send me a message via the “message” icon in halo if you need to contact me. I check my email regularly, so you should get a response within 24 hours. If you have not heard from me within 24 hours and need to contact me urgently, please send a follow up text to

I strongly encourage that you do not wait until the very last minute to complete your assignments. Your assignments in weeks 4 and 5 require early planning as you would need to present a teaching plan and interview a community health provider. I advise you look at the requirements for these assignments at the beginning of the course and plan accordingly. I have posted the YouTube link that explains all the class assignments in detail. It is required that you watch this 32-minute video as the assignments from week 3 through 5 require that you follow the instructions to the letter to succeed. Failure to complete these assignments according to instructions might lead to a zero. After watching the video, please schedule a one-on-one with me to discuss your topic for your project by the second week of class. Use this link to schedule a 15-minute session. Please, call me at the time of your appointment on my number. Please note that I will NOT call you.

Please, be advised I do NOT accept any assignments by email. If you are having technical issues with uploading an assignment, contact the technical department and inform me of the issue. If you have any issues that would prevent you from getting your assignments to me by the deadline, please inform me to request a possible extension. Note that working fulltime or overtime is no excuse for late assignments. There is a 5%-point deduction for every day your assignment is late. This only applies to approved extensions. Late assignments will not be accepted.

If you think you would be needing accommodations due to any reasons, please contact the appropriate department to request accommodations.

Plagiarism is highly prohibited. Please ensure you are citing your sources correctly using APA 7th edition. All assignments including discussion posts should be formatted in APA with the appropriate spacing, font, margin, and indents. Any papers not well formatted would be returned back to you, hence, I advise you review APA formatting style. I have attached a sample paper in APA format and will also post sample discussion responses in subsequent announcements.

Your initial discussion post should be a minimum of 200 words and response posts should be a minimum of 150 words. Be advised that I grade based on quality and not necessarily the number of words you post. A minimum of TWO references should be used for your initial post. For your response post, you do not need references as personal experiences would count as response posts. If you however cite anything from the literature for your response post, it is required that you cite your reference. You should include a minimum of THREE references for papers in this course. Please note that references should be no more than 5 years old except recommended as a resource for the class. Furthermore, for each discussion board question, you need ONE initial substantive response and TWO substantive responses to either your classmates or your instructor for a total of THREE responses. There are TWO discussion questions each week, hence, you need a total minimum of SIX discussion posts for each week. I usually post a discussion question each week. You could also respond to these as it would count towards your required SIX discussion posts for the week.

I understand this is a lot of information to cover in 5 weeks, however, the Bible says in Philippians 4:13 that we can do all things through Christ that strengthens us. Even in times like this, we are encouraged by God’s word that we have that ability in us to succeed with His strength. I pray that each and every one of you receives strength for this course and life generally as we navigate through this pandemic that is shaking our world today. Relax and enjoy the course!

Hi Class,

Please read through the following information on writing a Discussion question response and participation posts.

Contact me if you have any questions.

Important information on Writing a Discussion Question

• Your response needs to be a minimum of 150 words (not including your list of references)
• There needs to be at least TWO references with ONE being a peer reviewed professional journal article.
• Include in-text citations in your response
• Do not include quotes—instead summarize and paraphrase the information
• Follow APA-7th edition
• Points will be deducted if the above is not followed

Participation –replies to your classmates or instructor

• A minimum of 6 responses per week, on at least 3 days of the week.
• Each response needs at least ONE reference with citations—best if it is a peer reviewed journal article
• Each response needs to be at least 75 words in length (does not include your list of references)
• Responses need to be substantive by bringing information to the discussion or further enhance the discussion. Responses of “I agree” or “great post” does not count for the word count.
• Follow APA 7th edition
• Points will be deducted if the above is not followed

• Remember to use and follow APA-7th edition for all weekly assignments, discussion questions, and participation points.
• Here are some helpful links
• The is a great resource