assignment for kim woods

BSM 300 & MMG515Homework 3

Chapters 6 and 7

Name: ___________________________________________________

LO1 Describe the economic trade- offs associated with obtaining inputs through spot exchange, contract, or vertical integration.

LO2 Identify four types of specialized investments, and explain how each can lead to costly bargaining, underinvestment, and/ or a “ hold- up problem.”

LO3 Explain the optimal manner of procuring different types of inputs.

LO4 Describe the principal– agent problem as it relates to owners and managers.

LO5 Explain three forces that owners can use to discipline managers.

LO6 Describe the principal– agent problem as it relates to managers and workers.

LO7 Discuss four tools the manager can use to mitigate incentive problems in the workplace.

LO8 Calculate alternative measures of industry structure, conduct, and performance, and discuss their limitations.

LO9 Describe examples of vertical, horizontal, and conglomerate mergers, and explain the economic basis for each type of merger.

LO10 Explain the relevance of the Herfindahl- Hirschman index for antitrust policy under the horizontal merger guidelines.

LO11 Describe the structure- conduct- performance paradigm, the feedback critique, and their relation to the five forces framework.

LO12 Identify whether an industry is best described as perfectly competitive, a monopoly, monopolistically competitive, or an oligopoly.