Category: economics

The Worst Business Decision: Blockbuster declining to buy Netflix

Posted on | by Kelvin

Watch the following video about some of the worst business decisions ever made:

You can view the transcript for “10 Worst Business Decisions Ever Made” here (opens in new window)Links to an external site..
For your reference, here’s a list of the ten business mistakes identified in the video:
Blockbuster declined to buy Netflix
Western Union turned down a chance to buy the patent on the telephone
Publishers turned down Harry Potter
AOL and Time Warner merger
Firestone refused to recall faulty tires and lost Ford partnership
20th Century Fox granted George Lucas rights to Star Wars films and merchandise
Atari said no to Apple computer
Kodak sat on first digital camera too long
NBC vs. Conan and Leno
RCA diversified too much
For Discussion
Pick one of the examples from the video, or research your own example (if you do this, please provide at least one supporting link). You may also choose to do more research on the example you chose. Then answer ALL of the following questions about the decision you chose:

What barriers do you think the decision-makers faced? Can you identify any biases that might have influenced their decision?
What tools or processes do you think the decision-makers could have used to avoid the bad decision? Be specific about why you think the tools or process would have led them to a different decision.
Put yourself in the decision-maker’s shoes. Do you think you would have made the same mistake? Why or why not ?

 

The demand, supply, and equilibrium price of two substitute products

Posted on | by Kelvin

Select at least two news articles that discuss demand, supply, and equilibrium price of two
substitute products, like beef and chicken; butter and margarine. It can be two articles that discuss
both products, or one article about one product and another article about another product.
At least one news article should be dated within the previous two months.
Refer to week 2 content materials and use specific economic vocabulary within your
discussion, i.e.
• Demand for one product:
o Quantity demanded,
o Determinants of demand,
o Shifts in demand curve, etc.
• Demand for another product:
o Quantity demanded,
o Determinants of demand,
o Shifts in demand curve, etc.
• Supply for one product
o Quantity supplied,
o Determinants of supply,
o Shifts in supply curve, etc.
• Supply for another product
o Quantity supplied,
o Determinants of supply,
o Shifts in supply curve, etc.
• Changes in equilibrium quantity and equilibrium price for one product
• Changes in equilibrium quantity and equilibrium price for another product
The articles you choose may not use these exact terms; therefore, it is incumbent upon you to
convert the article language into economic language as is appropriate.

 

 

 

Survey Questions for Estimating Benefits and Costs of the Recreational Area Project

Posted on | by Kelvin

The country of DCM is also considering building a recreational area about an hour’s drive from the urban area. You are assigned the task of developing a survey to estimate the values of a project using the travel-cost method. Develop eight (8) questions to be used in the survey to find out information that will help you estimate the benefits and costs of this project and list them below. For each question, also specify what economics cost of benefit you are trying to ascertain.

 

The Impact of Taxes and Technological Development on Depletable Resources

Posted on | by Kelvin

Assume an increasing marginal-extraction-cost model of the allocation of a depletable resource with a renewable substitute (refer to text and/or notes for graph). Showing diagrammatically, what happens if:
a. A per-unit tax if imposed by the government on each unit of the depletable resource used. Be sure to show the new effect on (i) marginal extraction cost and marginal user cost; (ii) quantity extracted; and (iii) switching point.
b. Now on a new graph, show diagrammatically what happens to the (i) quantity extracted; and (ii) switching point if technological development in resource extraction reduces the extraction cost for each unit by an amount equal to the per-unit tax.

Cost-Based Pricing

Posted on | by Kelvin

 

Write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

The Southwest regional manager is having trouble preparing a bid for a lucrative government contract to supply blenders to the military dining facilities in Fort Hood, Texas. Specifically, he has asked for your assistance as he determines his approach to pricing.

Complete the following:

Define and describe cost-based pricing.
Define and describe market-based pricing.
In addition, the government contract officer mentioned the requirement to present a fair and reasonable price to be considered for the contract. Identify the guideline or regulation that governs acquisition and contracting, and describe the concept of fair and reasonable price in government contracts.