TAILIEUCHUNG - Microeconomics for MBAs 9

Microeconomics for MBAs 9. The Economic Way of Thinking for Managers. Microeconomics for MBAs develops the economic way of thinking through problems that MBA students will find relevant to their career goals. Maths is kept simple and the theory is illustrated with real-life scenarios | Chapter 2 Competitive Product Markets 40 the price at the pump remains constant at the price ceiling does that mean that the real price of gasoline has remained constant 9. If the government imposes a price floor on whole milk and buys the resulting surplus can it later sell what it has bought and recoup its expenditure What else can the government do with the milk surplus Why would you as a milk producer want the price floor Show the industry benefits in a graph. 10. Henry Ford more than doubled his workers wages. Did worker real income double by Ford s pay policy Reflecting on the general principles behind Ford s pay action when should any firm - your firm - stop raising the pay of workers not in terms of actual dollar amount but in terms of some economic management principle that you can devise 11. Workers and their employers often talk about how workers earn their wages but about how firms give their workers health insurance or any other fringe benefit . Should the different methods of pay be discussed in different terms 12. In state universities why does the state subsidize full-time MBA programs but not executive MBA programs Should the two programs be treated differently Does the state subsidy explain the price differential for students in the two programs READING The Effect of Airline Deregulation on Travel Safety William F. Shughart II University of Mississippi Before 1978 airlines in the United States were strictly controlled by government agencies. The safety of airlines was and remains today regulated by the Federal Aviation Administration FAA . In addition the Civil Aeronautics Board CAB controlled airline fares and routes. The effect of CAB regulations was to restrict the ability of airlines to compete by price and entry into markets. Without CAB approval for example Delta Airlines could not lower its air fares or enter new markets to expand its business. In 1978 Congress passed legislation to eliminate gradually most of the economic controls the CAB

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• Society and Business
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