Game Theory - When McDonalds reduced it price on the Big Mac by 75% its customers also purchased fries and a soda. A newspaper reported that McDonald's was trying to revive its sales in the US with this promotion, however it did not. Within 2 weeks sales had fallen. Using game theory, what do you think messed up McDonald's plan?

Competition - Dell Computers - Dell Computer keeps a close eye on what its competitors are doing. Why do you think, using economics, Dell reacts more quickly and more substantially to pricing, product design, and advertising to its close competitors such as HP and Gateway than it does with Apple computer?

Sunday sale restrictions - Some states have had laws restricting the sale of most goods on Sunday. Most consumers oppose these laws because they find Sunday afternoon a good time to shop, however retail trade associations support these laws. Using economics, give reasons for the trade assoc to support these laws.

average variable, fixed, & total cost - The engineers at Tools, Inc have derived the expansion path shown in the attached spreadsheet. The price of labor is $100 per unit. 1.What price does Tools, Inc pay for capital? 2.If the owner decides to produce 180 units of output, how much labor and capital should be used in order to minimize total cost? 3.What is the total cost of producing 120,...

Short run losses - If there is a debate between a CEO and the president of a company as to whether or not to shut down a firm's plant in Texas that is currently losing $60,000 monthly and the president of the company says they should continue to operate, at least until a buyer is found for the production facility because that the Texas plant's fixed costs are $68,000 per month. However, the CEO sa...