peculiar character of the problem of a rational economic order is determined precisely by the fact that the knowledge of the circumstances of which we must make use never exists in concentrated or integrated form, but solely as the dispersed bits of incomplete and frequently contradictory knowledge which all the separate individuals possess (H.3)” i. What does Hayek mean by a “rational economic order”? a. The economic problem of society is thus not merely a problem of how to allocate "given"
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1. Agency problems – why they arise, ways to reduce them (board of directors for ex.) • Corporations are owned by shareholders that want managers to maximize their wealth. • Agency problems arise due to the separation of ownership and management * Managers may have conflicts of interest with shareholders (maybe they want to maximize their own wealth rather than the shareholders wealth) – This is called an Agency Problem because the managers are acting as agents for the shareholders.
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2005 the price of crude oil averaged $50.23 per barrel. In comparison, the average price for crude oil in 2004 was $36.98 per barrel. Fast-forward to the present, and the price of crude oil averages $77 per barrel. Additionally, taxes account for approximately 19 percent of the cost of a gallon of gasoline. In my state of Washington, each gallon of gas is taxed at 54.4 cents 1 and the average cost for a gallon of gas is $2.93 2 Even when crude oil prices are stable, gasoline prices normally
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source primarily for transportation and industrial production. This makes oil prices one of the most important elements of today’s economy. In that sense, the Kingdom of Saudi Arabia is on the centre of world economy because of her rich reserves also because the Kingdom has the lowest production cost in the world. Saudi production capacity and the Kingdom’s political stability are key elements for the international oil prices and consequently the world economy. Saudi Arabia is essential to the international
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Stagnat sales Heavy competition with pepsi Stale consumer demand Price decrimination No room for open expantion without direct competition High margins on concentrate allows for price undercutting c. Relationships among important issues India The low purchase power of the byers (make about 100 Rs a day) causes the people to view the 300ml (@10 Rs) and above as to expensive. The higher price and decreased brand trust caused lower consumption among lower income in
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to Lockheed shut down the L-1011 project in which you are involved because in a realistic scenario in which they could sell 330-380 airplanes until 1980 and taking in consideration a cost reduction base on cost “learning curve” and their financial problem in two other project (Lockheed C-5 and the cancelation of AH-56A helicopter) their NPV would be -$85 mill. In this case our recommendation would be shut down your commercial aircraft project and try to keep being one of the best companies in military
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Chapter 12 Segment Reporting and Decentralization Solutions to Questions 12-1 In a decentralized organization, decision-making authority isn’t confined to a few top executives, but rather is spread throughout the organization with lower-level managers and other employees empowered to make decisions. 12-2 The benefits of decentralization include: (1) freeing top managers to focus on strategy, higher-level decision making, and coordinating activity; (2) improving operational decision making
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USE THE FOLLOWING INFORMATION FOR THE NEXT THREE PROBLEMS Jackie has a margin account with a balance of $150,000. If the initial margin deposit is 60 percent and Turtle Industries is currently selling at $50 per share: (a) 1 How many shares of Turtle can Jackie purchase? (b) 2 What is Jackie's profit/loss if Turtle’s price after one year is $40? (d) 3 If the maintenance margin is 25 percent, to what price can Turtle Industries fall before Jackie receives a margin call? USE THE
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things for the best price. The country where we can get the best medical care for a decent price, but throughout my years of living here, I have yet to experience any of those things, especially when it comes to the prices on not only the simplest items, but on medical equipment and supplies that many people rely on. Throughout this society there have been an economic problem that is coming a float. Prices are rising, and people are going “broke”. The epidemic problem of PRICE GOUGING is getting out
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Abstract A problem of poverty of farmer in North and Northeast region has been discussed since the old time. The direction of government to rice producer is unclear. Since that, the poverty problem could not be solved. Therefore, the discussion of the paper would focus the idea on the direction
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