Monroe College Chapters 10 12 & 20 Economics and Commerce Questions

Please answer these questions based on the material in Chapters 10 and 12-20.

Your response to each question should be less than one page

1. Suppose you are negotiating the salary for a new job offer, and your potential employer mentionsthat they have another candidate who is willing to accept less money than you request. Based onthe discussion in our textbook, what impact should this information have on your bargainingposition? When should this information have no impact on your bargaining position?

2. For the console video games , please devise a pricediscrimination scheme intended to increase total sales revenue. Some groups considered pricediscrimination during their presentations, so your response to this question should offer anotherform of price discrimination for this product. In particular, you should describe the type of pricediscrimination to be used as well as the types of customers who will pay higher or lower prices.As well, you should consider the potential for resale among customers.

3. Ebay.com started as a traditional auction site in which the bidding on an item lasted a specifiedamount of time, and the highest bid at the closing time was the winner. Most items on ebay.comare now posted with a set purchase price for the item, and any buyer who is willing to pay thatprice can purchase the item immediately. However, some items are still sold by auction (e.g., artworks and other collectibles), and one piece of information provided for an auction is the numberof existing bids. Based on the discussion of auctions in the book, what is the expected impact ofthe number of bidders on the sales price for an item? Should you adjust your bid as the numberof bidders increases?

4. For the JEWELRY INDUSTRY, please describe a situationin which adverse selection or moral hazard arises in this business. Then, you should describe theway that this asymmetric information problem is commonly resolved in this market.