Managerial Economics
Questions(•Chapter 1: Problems 2, 3, and 6)
1. What is the maximum amount it would be worth to shareholders to elicit high
CEO effort all of the time rather than low CEO effort all of the time?
2.If you decide to pay 1 percent of this amount (in Question 1) as a cash bonus,
what performance level (what share price or shareholder value) in the table
should trigger the bonus? Suppose you decide to elicit high CEO effort when,
and if, medium luck occurs by paying a bonus should the company’s value rise
to $800,000,000. What criticism can you see of this incentive contract plan?
3. Suppose you decide to elicit high CEO effort when, and if, good luck occurs by
paying a bonus only for an increase in the company’s value to $1,000,000,000.
What criticism can you see of this incentive contract plan?
6. Design a stock option-based incentive plan to elicit high effort. Show that 1 million
stock options at a $70 exercise price improves shareholder value relative to
the best of the cash bonus plans in Questions 2, 3, or 4.
4. Suppose you decide to elicit high CEO effort when, and if, bad luck occurs by
paying the bonus when the company’s value falls to $500,000. What criticism
can you see of this incentive contract plan?
Questions (•Chapter 2: Problems 1, 5, and 6)
1. Make a list of some of the issues that will need to be resolved if American Airlines
decides to routinely charge different prices to customers in the same class of
service.
2. Would you expect these revenue management techniques of charging differential
prices based on the target customers’ willingness to pay for change order responsiveness,
delivery reliability, schedule frequency, and so forth to be more effective
in the trucking industry, the outpatient health care industry, or the hotel industry?
Why or why not?
3. Sometimes when reservation requests by deep discount travelers are refused, demanders
take their business elsewhere; they “balk.” At other times, such demanders
negotiate and can be “sold up” to higher fare service like United’s Economy
Plus. If United experiences fewer customers balking when reservation requests for
the cheapest seats are refused, should they allocate preexisting capacity to protect
fewer seats (or more) for late-arriving full-fare passengers?
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Services
Assignment Help has assembled a team of highly skilled writers with diverse experience in the online writing circles. Our aim is to become a one stop shop for all your Academic/ online writing. Check out below our amazing service!
Essays
At Assignment Help, we prioritize on all aspects that creates a good grade such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines. The principal purpose of essay writing is to present the author's evaluation concerning a singular subject about which they have made. Since Professionalism is the mother of every success, try our team of experienced writers in helping you complete your essays and other assignments.
Admissions
Admission Papers
You have been trying to join that prestigious institution you long yearned for, but the hurdle of an admission essay has become a stumbling block. We have your back, with our proven team that has gained invaluable experience over time, your chance of joining that institution is now! Just let us work on that essay.How do you write an admission essay? How do you begin the essay? For answers, try Quality Custom Writers Now!
Editing
Editing and Proofreading
Regardless of whether you're pleased with your composing abilities, it's never an impractical notion to have a second eye go through your work. The best editing services leaves no mistake untouched. We recognize the stuff needed to polish up a writing; as a component of our editing and proofreading, we'll change and refine your write up to guarantee it's amazing, and blunder free. Our group of expert editors will examine your work, giving an impeccable touch of English while ensuring your punctuation and sentence structures are top-notch.
Coursework
Technical papers
We pride ourselves in having a team of clinical writers. The stringent and rigorous vetting process ensures that only the best persons for job. We hire qualified PhD and MA writers only. We equally offer our team of writers bonuses and incentives to motivate their working spirit in terms of delivering original, unique, and informative content. They are our resources drawn from diverse fields. Therefore your technical paper is in the right hands. Every paper is assessed and only the writers with the technical know-how in that field get to work on it.
Coursework
College Essay Writing
If all along you have been looking for a trustworthy college essay service provider that provides superb academic papers at reasonable prices, then be glad that you search has ended with us. We are your best choice! Get high-quality college essay writing from our magnificent team of knowledgeable and dedicated writers right now!
Coursework
Quality Assignment/Homework Help
We give the students premium quality assignments, without alarming them with plagiarism and referencing issues. We ensure that the assignments stick to the rules given by the tutors. We are specific about the deadlines you give us. We assure you that you will get your papers well in advance, knowing that you will review and return it if there are any changes, which should be incorporated.