Reed, Isaiah, Nia, and Taylor are all lawyers. After several years of working for big firms, they decide to pool their resources and start their own law practice together. The four of them will make all their business decisions together and will share all of the profits and financial risk. Their new law firm is an example of which business organization? * O Sole Proprietorship O Franchise O Partnership Corporation

Reed, Isaiah, Nia, and Taylor are all lawyers. After several years of working for big firms, they decide to pool their resources and start their own law practice together. The four of them will make all their business decisions together and will share all of the profits and financial risk. Their new law firm is an example of which business organization? * O Sole Proprietorship O Franchise O Partnership Corporation

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter16: Bargaining

Section: Chapter Questions

Problem 16.1IP

See similar textbooks

Similar questions

Jane and Bill are apprehended for a bank robbery. They are taken into separate rooms and questioned by the police about their involvement in the crime. The police tell them each that if they confess and turn the other person in, they will receive a fighter sentence. If they both confess, they will be each be sentenced to 30 years. If neither confesses, they will each receive a 20-year sentence. If only one confesses, the they will receive 15 years and the one who stayed silent will receive 35 years. Table 10.7 below represents the choices available to Jane and Bill. If Jane trusts Bill to stay silent, what should she do? If Jane thinks that Bill will confess, what should she do? Does Jane have a dominant strategy? Does Bill have a dominant strategy? A = Confess; B = Stay Silent. (Each results entry lists Janes sentence first (in years), and Bills sentence second.)
Dr. Heinz Doofenshmirtz and Perry the Platipus have decided to venture into farming. They both participated in the venture eqully well, so at the end of the year, their farm produced five geese, each laying golden egs. Perry and Dr. Doof have to decide how to divide these five geese among themselves -- there are no market where they could sell them and there is not sharing or time-share arrangements possible. In other words, either they use the goose or loose it. Evidently, they cannot split an egg-laying goose in half.(a) Give an example of economically efficient allocation of golden egg laying geese between Perry and Dr. Doof. Briefly explain why the allocation you provide is efficient. (b) Give an example of an allocation of geese between the two that you think is fair (equitable). Briefly explain why it is fair in your opinion. (c) If the allocation in (a) is not the same as the one in (b), is it possible to come up with an allocation of geese that would be both efficient and…
While grading a final exam, an economics professordiscovers that two students have virtually identical answers.She is convinced the two cheated but cannot prove it. The professorspeaks with each student separately and offers the followingdeal: Sign a statement admitting to cheating. If both studentssign the statement, each will receive an “F” for the course. Ifonly one signs, he is allowed to withdraw from the course whilethe other student is expelled. If neither signs, both receive a “C”because the professor does not have sufficient evidence to provecheating.a. Draw the payoff matrix.b. Which outcome do you expect? Why?
(1) Patricia owns a cleaning business with Sarah. They both have other jobs and are trying to determine the number of hours to work at the cleaning business. The following payoff matrix shows their daily incomes depending on the number of hours they work at the cleaning business. If Patricia chooses to work full time and Sarah works part time, what will each earn in daily income? A-Patricia will earn $60; Sarah will earn $60. B-Patricia will earn $50; Sarah will earn $80. C-Patricia will earn $80; Sarah will earn $50. D-Patricia will earn $55; Sarah will earn $55. E-Indeterminate (2) Company A and Company B are each telecommunications manufacturers. Both companies manufacture the same products, and they make their decisions based on the other's actions. Both companies are considering opening retail outlets to increase their profits. The payoff matrix shows the profits of the companies in millions of dollars if they choose to open retail outlets. The government imposes a new $5…
Intellectual property laws are intended to promoteinnovation, but some economists, such as MiltonFriedman, have argued that such laws are not desirable.In the United States, there is no intellectual propertyprotection for food recipes or for fashion designs.Considering the state of these two industries, andbearing in mind the discussion of the inefficiency ofmonopolies, can you think of any reasons whyintellectual property laws might hinder innovation insome cases?
V11 Read the article Internationally Acclaimed Quilter Claims Fraud in Lawsuit Seeking Share of Quilts’ Profits. According to the article, “[t]he lawsuit says any agreement between the quilters and the defendants was oral and was not put into writing.” After studying the statute of frauds in this unit, why is the failure to put the agreement into writing problematic? Be specific in your answer, citing any of the statutes of frauds that you think may apply to the lawsuit. "New Answer
Each time a song is played on the radio, the record company and the songwriter are paid a royalty of $0.30.Of the total, 75% goes to the company and the rest to the writer. If on a network of 50 radio stations, a certainsong is played 4 times a day during the first week and then 20 times a day for the next three weeks, how muchdoes the network owe in royalties for the four weeks? How much do the record company and the songwriterreceive each
Discuss whether strategic interaction/ collusion between firms can be explained without taking into account what Ben fine calls 'institutions' e.g. learning , reputation customary behaviour and ethical codes .what implications does this have for policy in this area ?
Would Yolanda Diaz have been as successful if she hadstarted her company right out of college, rather than waiting until she’d had a decade of corporate experience? Whyor why not?
What is the goal of an organizational ethics program? What are the essential elements of an organizational ethics program? Be specific! How would you implement them in your current or future organization.
Suppose you manage a large company’s marketing department and are responsible for deciding whether or not to advertise in the Super Bowl. Your team of analysts estimate that for each advertisement, your firm would generate $6 million in additional revenue for the company. It cost $7 million to run a 30-second advertisement. Therefore, your company would expect to lose $1 million in profit for each advertisement. Explain why it could still be worthwhile to purchase an advertisement, even though you know in advancethat your company would lose $1.5 million in profit
Game Theory a) Consider the following game represented by the game tree below. If you observe Blue Bank playing medium and Green Bank playing bottom, would you be surprised by their choices? Carefully explain why or why not. b) Now assume that Blue and Green Banks play the game with the same actions and payoffs as in a) but they make their choices simultaneously. What is the payoff matrix for this new game? What do you predict will happen in the game? Explain. c) Assume that the game from part a) is played five times, i.e. Blue and Green Banks play a repeated game with the stage game described in a). What do you predict will happen in the game? Explain.