Some people are good drivers, and others are bad drivers. The former have a 10% chance of crashing their cars, and the latter have a 30% chance. All have a total wealth of 400, but this will fall to 100 if they crash their cars. In other words, each will lose 300 of wealth if […]
Bethlehem and Youngstown, two major steel producers, accounted for about 21% of the national steel market in the late 1950s, when they proposed to merge. a. Should the two steel companies have been allowed to merge? Why or why not? b. According to the companies, Bethlehem sold most of its output in the East, whereas […]
The New York State Electric and Gas Corporation fi led a request for a 10.7% increase in electric revenues. The reasons given to justify the increase were that the value of the firm’s plant and equipment had increased by $140 million, operating costs had increased, and investors required a higher rate of return. a. Why […]
Since early in this century, an enormous amount of attention was devoted to global warming. According to many scientists, increases in carbon dioxide and other greenhouse gases may produce significant climatic changes over the next century. To cope with this potential problem, it has been suggested that firms reduce energy consumption and switch to nonfossil […]
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