Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
Is it valid to apply game theory to the analysis of organizational strategy in a perfectly competitive
market? Why or why not?
In the text, Hubbard & OBrien (2015) posit that game theory is used to analyze competition amongst
oligopolists. In addition to
Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
The high rates of unemployment and business bankruptcies during the Great Depression of the 1930s
caused a dramatic increase in government intervention in the economy of the United States. What was
the original intent of this government intervention? What
Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
Why do consumers seek to maximize their utility? Is marginal utility more useful than total utility in the
decision making of consumers? Why or why not? Is marginal utility per dollar spent a more accurate view
than marginal or total utility? Why or why n
Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
Is Coases theorem valid? Why or why not? How does Coases theorem address the problem of
environmental pollution control? Does this make sense? Why or why not?
Coases theorem, as defined by the text, states that If transactions costs are low, private barga
Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
The textbook refers to a study of odd pricing, the results of which were termed inconclusive. The text
authors, however, claim that the study does provide some evidence that using odd prices makes
economic sense (page 506). Is this conclusion valid? Why o
Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
How do the concepts of adverse selection and moral hazards affect financial and labor markets? Which
of these effects is the most significant? Why? What are the most significant effects of these concepts on
organizations and individuals? Why?
There are fe
Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
Does the shifting of the demand curve to the right or the shifting of the supply curve to the left have the
greater longrange economic effect? Why? Are these shifts more significant than shifts along the curves?
Why or why not?
The supply curve shifts to
Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
How does a firm use isoquants and isocosts to choose the optimal combination of inputs?
Hubbard and OBrien (2015) posit that firms use isoquants and isocost lines to better understand the
relationships between production and costs (pp. 352). The isoquant
Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
Many economists are convinced that fuel has a relatively inelastic demand curve, provide a discussion
that substantiates their point of view. Do you agree with this view? Why or why not?
Inelastic demand takes place when the change in percentage of change
Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
Is examining the intersection of budget lines and indifference curves a valid means of assessing consumer
behavior? Why or why not?
Examining indifference curves is in fact a way to assess consumer behavior. Hubbard and OBrien (2015)
assert that the indif
Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
A residential building in New York City contains 15 luxuryappointed lofts in a highly desirable location.
How do rent ceilings affect the property owner (supply) and potential tenants (demand)? Which has
the greater effect on the overall economy? Why?
Re
Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
Most firms use graphs to present profit and loss information to key stakeholders. What are the
limitations of these graphical representations? What ethical concerns must be considered in the
preparation and presentation of financial graphs? What should in
Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
What is the role of models in economic analysis?
The role of models in economic analysis are to:
1.
2.
3.
4.
5.
Estimate data
Model final outcomes
Combine results for comparison
Construct new data points
Conduct a preliminary analysis
In short, models are
Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
What are the three most important attributes of successful organizations? Why? Is it more likely for an
organization to display these attributes (to be successful) in an oligopoly than in monopolistic
competition? Why or why not?
The three most important
Eonomics Foundations and Models and the use of graphs of formulas
DBA 815

Fall 2015
What are the optimal conditions for the creation of a monopoly?
There are a few optimal conditions for the creation of a monopoly. First, is an environment where firms
agree not to compete. Second, is an environment where an organization can ignore the pr