Exercise 2.2. A three-man board, composed of A, B, and C, has held hearings on a personnel case involving an officer of the company. This officer was scheduled for promotion but, prior to final action on his promotion, he took a decision that cost the company a good deal of money. The question is whether he should be (1) promoted anyway, (2) denied the promotion, or (3) fired. The board has discussed the matter at length and is unable to reach unanimous agreement. In the course of the discussion it has become clear to all three of them that their separate opinions are as follows: • A considers the officer to have been a victim of bad luck, not bad judgment, and wants to go ahead and promote him but, failing that, would keep him rather than fire him. • B considers the mistake serious enough to bar promotion altogether; he'd prefer to keep the officer, denying promotion, but would rather fire than promote him. C thinks the man ought to be fired but, in terms of personal policy and morale, believes the man ought not to be kept unless he is promoted, i.e., that keeping an officer who has been declared unfit for promotion is even worse than promoting him. To recapitulate, their preferences among the three outcomes are PROMOTE KEEP FIRE A: best middle worst B: worst best middle C: middle worst best Assume that everyone's preferences among the three outcomes are fully evident as a result of discussion. The three must proceed to a vote. Consider the following voting procedure. First A proposes an action (either promote or keep or fire). Then it is B's turn. If B accepts A's proposal, then this becomes the final decision. If B disagrees with A'a proposal, then C makes the final decision (which may be any of the three. promote, keep of fire). Represent this situation as an extensive game with perfect information.

Netflix customers in Australia could soon be facing steeper monthly charges. The popular streaming service on Monday confirmed that it recently tested higher subscription prices for new customers in Australia. The company—which has nearly 100 million global subscribers and expanded to Australia in 2015—has reportedly tested raising prices for new subscribers by as much as three Australian dollars (AU). Netflix’s test resulted in some Australian customers seeing price increases for the streaming service’s Basic plan (going from AU$8.99 to AU$9.99 per month), while Netflix’s Standard plan increased AU$2 to AU$13.99 and the Premium plan increased AU$3 to AU$17.99 per month, according to The Australian. Netflix confirmed the tests, but emphasized that it has not yet formally announced any permanent price increases. “We continuously test new things at Netflix and these tests typically vary in length of time,” the company said in a statement. “In this case, we are testing slightly…

Retail life cycle refers to Multiple Choice the distinct stages a product goes through before it becomes obsolete. the process of growth and decline that retail outlets, like products, experience. the cycle of a customer's buying behavior from awareness of a product to its ultimate purchase. the relationship between the tangible aspects of a product and the types of services that need to accompany it. the traditional management changes that take place as a retail outlet grows.

How is elasticity related to logarithms?

What are some other examples of elasticity that can be affected by time?

The owner of Tommy's Technicians has found that his shop is losing money and he is in jeopardy of going out of business. Sales have remained constant for quite some time and now he is looking at ways to cut expenses to stay in business. Which of the following expenses is his best choice to try to immediately reduce and save him meaningful dollars so he can remain in business? (Hint: First consider which ones he has ultimate control over?) Rent expense Utilities expense Payroll expense Shop insurance expense Advertising expense

The municipal corporations in most parishes in Jamaica have initiated a program to charge residents for garbage disposal based on the number of cans filled per week. The parish of Kingston decided to increase its per-can price from $500 to $750 per week. In the first week, it was found that the number of cans that were brought to the curb fell from 500 to 450 (although the workers complained that the cans were heavier). The chief economist ran the numbers, informed the mayor that the demand for disposal was inelastic, and recommended that the price be raised to maximize town revenue from the program. Four months later, at a price of $1000 per can, the number of cans has fallen to 125 and town revenues are down. What might have happened?

consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently cost $5 and the government wants to reduce smoking by 20%, it should increase the price by what %? If the government permanently increases the price of cigarettes, the effect on smoking 1 year from now will be blank than the effect 3 months from now. Studies also find that teenagers have a higher price