Chapter 3 Notes: Vertical Boundaries of the Firm
1. Whether the firm should vertically integrate and to what extent depends on whether this integration would be expected to increase profits.
This depends on a number of conditions.
2. A firm can vertically
0.5 out of 0.5 points (Extra Credit)
If you are experiencing technical difficulties in Blackboard, what is your best option for
Call or email the IT Help Desk.
Call or email the IT Help Desk.
Chapter 2 Discussion Questions: Coty closes in on $12bn P&G beauty deal and Procter
& Gamble sells beauty arm to Coty in complex deal
1. Describe/explain how Coty, which is attempting to acquire P&Gs beauty assets, is
pursuing economies of scale.
ECON 5315: Homework for pp. 9-37, Review of Microeconomics
Counted as a 10-point assignment, but 11 points are possible.
[#s 2, 3, 4 & 9 are adapted from end-of-chapter questions.]
2. If the ATC curve is rising, does that mean the MC curve must lie above
Chapter 3 Discussion Questions: Young Americans turn to tea and IBM and Apple team
up to launch iPad for the elderly in Japan
Young Americans Turn to Tea article:
1. What is meant by the term vertical integration? Describe the vertical integration
8 out of 10 points
Use the abridged articles on pp. 3 & 4, Coty closes in on $12bn P&G beauty
deal and Procter and Gamble sells beauty arm to Coty in complex deal, to
answer the following questions: (10 points: 2 points each)
SEE BELOW FOR ANSWERS AND BOTTOM FOR CORRECTIONS
Homework for Chapter 5 (modified questions from the end of the chapter)
[13 points possible]
1. Why are the concepts of own and cross-price elasticities of demand essential to competitor identif
Homework, Chapter 2
10 points possible
Scenario: Suppose that in 2015, a new company called Corpus Christi Cheer Beer begins to produce beer to sell to
1. Describe 2 ways in which you would expect a company such as Miller to experience
Discussion Questions for Chapter 5: Balance of Power Shifts in Groceries; Natural,
organic foods from small producers muscle in on big names
1. NOT in the article: How would you argue that the growers of organic carrots (or
most other vegetables) are perf
CASE STUDY PRESENTATION
Began as efficient method to deliver U.S. Mail in 1920s
Regulated industry shifted to passenger travel in 1936
Oversight by Civil Aeronautics Board
Deregulation in 1978 caused unstable market
Micro review Discussion Questions: Oil re-enters bear market and Oils Plunge Could
Help Send Its Price Back Up; Jump in purchases less-fuel-efficient vehicles is expected to
1. What has happened to the production of oil in the US? What can ex
Chapter 7 Discussion Questions: Divergent unveils part-3D printed supercar
and Federal Panel Backs Approval of New Drug to Fight Heart Attacks
1. What is meant by the term commitment? What is Divergents commitment,
as described in the ar
SEE BELOW FOR ANSWERS AND THE BOTTOM FOR CORRECTIONS.
Homework for Chapter 3 (adapted from end-of-chapter questions)
10 points possible
3. By virtue of a contract, since 2014 Pfizer has held exclusive rights - in the U.S., Europe and
American Airlines Case Study
American Airlines: Page 1 of 29
Table of Contents
Section A: Define the Industry .4
Section B: Analyze the Structure of the Industry .6
Section C: Explaining American Airlines Corporate Culture .
Chapter 8 Discussion Questions: Google hopes all or nothing bet on robot cars
will pay off soon and Federal Panel Backs Approval of New Drug to Fight
robot cars article:
1. Explain what/who is in each of Porters 5 forces that affect Googles
Ch. 11 Discussion Questions: Lego wins trademark case over minifigures
and Google hopes all or nothing bet on robot cars will pay off soon
1. What/whose decision upheld Legos three-dimensional trademark
recently? Why/how is this important
Chapter 6 Discussion Questions: Divergent unveils part-3D printed supercar and
Procter & Gamble sells beauty arm to Coty in complex deal
1. List the types of companies that are becoming interested in producing automobiles,
Chapter 12 Discussion Questions: Takata Is Said to Have Stopped Safety Audits as CostSaving Move
1. Who are the principals of Takata? Who are its agents?
In a principal-agent relationship, it is the agent that is hired by the principal to ensure the most
SEE BELOW FOR ANSWERS AND BOTTOM FOR FEEDBACK CORRECTIONS.
Homework for Chapter 6, Adapted End-of-chapter Questions
(10 points possible)
2. Dunne, Roberts, and Samuelson found that industries which have high entry rates, tend to also have high
of a Much Higher-Capacity Chip
1. Strategically, why is IBM, along with its partners, planning to
compete with Intel and other chip makers? (Think about
prices and cross
Homework REFLECTIONS on YOUR OWN EXPERIENCES, Applying Theory from Chapter 12
Note: You are submitting this information confidentially. Your instructor will not share what you write here with anyone.
Principal-agent issues you have observed where you work
Readings: the or more chapters in our textbook and one or more news
unrrs or may articles that illustrate some oi" the major concepts in each chapter are to he
Dates for studying the read BEFDRE the ﬁrst date indicated in the column to the left. W'l'l'J
Hastert had the temerity to attend her bothers funeral and Burdge had confronted him
in the parking lot. Hastert had just stared at her. She too had been left feeling that
nobody would ever believe her.
The government sentencing memorandum suggests that H