Nash solution tiger toys faces demand curve and atc

Independence Burgers serves fast food at its 300 franchised outlets across the South. The chain has recently found that (a) people are upgrading to restaurants when they eat out, (b) government regulation of beef has been tightened, and (c) modern food preparation technology makes central commissaries more cost effective. What should Independence Burgers be thinking about doing with its organizational architecture? What impact does excess capacity play on determining the strategic focus of managers toward competitors? 

 Describe the three aspects of organizational architecture. Which one is the most important? 

In the area of agricultural chemicals, the Environmental Protection Agency requires detailed labeling on cans of pesticides and herbicides. Generally speaking, the industry not only doesn't oppose these labeling requirements, but even supports government sponsored education programs on how to use the these chemicals. Why? 

What is an agency relationship? What are agency problems?

 If a firm prices its output at marginal cost – the competitive solution – then the gains from trade are: 
A. all in producer surplus.
B. split between producer and consumer surplus.
C. all in consumer surplus.
D. split in a Nash solution.

If Tiger Toys faces a demand curve of P = 85 - .25Q and a MC = ATC = 20, then the market price would be: 
A. $85.00
B. $52.50
C. $130.00
D. $32.50

Using the linear approximation system to estimate the profit maximizing price requires that the managers know the costs of production and: 
A. the production function.
B. one price and quantity of demand.
C. two prices and quantities of demand.
D. decision-making process of the marketplace.

Using cost plus pricing, what is the price if ATC = $14.50 and the target rate of return is 4 percent? 
A. $15.10
B. $49.34
C. $14.5
D. $22.10

Refer to Figure 7.2. If Happy Times Theater charges one price to all customers, then the profit will be: 
A. $374.25.
B. $62.50.
C. $562.50.
D. $150.00.

Refer to Figure 7.2. If Happy Times Theater charges one price to day customers and a different price to night customers, then the profit will be: 
A. $374.25.
B. $62.50.
C. $562.50.
D. $150.00.

Many college basketball programs require alumni to join a booster club before they can buy season tickets. This is an example of: 
A. a two-part tariff.
B. first degree price discrimination.
C. block pricing.
D. cost-plus pricing.

Price discrimination requires that different customers have different levels of price sensitivity and that: 
A. the cost of production is different for every customer.
B. customers cannot resell the product amongst themselves.
C. demand is homogeneous amongst customers.
D. marginal costs are falling.

The higher the price elasticity  
A. the more sensitive price changes is to quantity demanded
B. the less sensitive price changes is to quantity demanded
C. the more sensitive quantity demanded to price changes
D. the less sensitive quantity demanded to price changes

In the 1950s and 1960s, cigarette company representatives stood at the edge of University campuses and gave away free cigarettes to anyone who would take them. This policy: 
A. helped political groups
B. established brand identity.
C. helped forge volunteerism
D. reduced alcohol consumption 

Electric generator companies did not raise their prices when there was a huge demand for their products, due to a power shortage. The companies were: 
A. concerned with being sued by consumer activists
B. concerned with political backlash
C. concerned with peoples' welfare
D. concerned with reputation and future demand

Game theory between two firms with two outcomes tends to emphasize: 
A. noncooperative games.
B. cooperative games.
C. intra-firms decision-making.
D. purely competitive outcomes.

Refer to Figure 9.5. The likely outcome for a simultaneous non-repeated bid is: 
A. GMB – High, VolgaBus – High.
B. GMB – Low, VolgaBus – High.
C. GMB – High, VolgaBus – Low.
D. GMB – Low, VolgaBus – Low.

Risk-averse managers often take the tack of selecting the secure strategy. That is the business decision that provides the: 
A. lowest payoff among the best payoffs.
B. highest payoff among the best payoffs.
C. lowest payoff among the worst payoffs.
D. highest payoff among the worst payoffs

A display of a game in a tree-diagram with nodes for every move: 
A. is called a second-mover advantage.
B. is called a first-mover advantage.
C. is a simultaneous move game.
D. is an extensive form representation. 11. 

A household products firm was required to examine its organizational architecture in order to survive. What three aspects of its organization did it look at? 
A. Decision rights, rewards, and technology.
B. Government regulation, technology and decision rights.
C. Government regulation, technology and markets.
D. Decision rights, rewards, evaluation systems.  

If D represents the level of decentralization of corporate decision-making, then Benefits = B*D and Costs = A*D + C*D². The optimal level of decentralization occurs where the: 
A. horizontal distance between benefits and costs is greatest.
B. vertical distance between benefits and costs is greatest.
C. sum of the squares of the distance between benefits and costs is minimized.
D. level of benefits is greatest.

If an employee makes a point of stopping each morning in his manager's office to detail the positive outcomes yesterday's work, this is an example of: 
A. project initiation.
B. influence costs.
C. project monitoring.
D. decentralization of decision-making.