You will only be quizzed over current events posts since March 26th (3/26). In other words, only new current events will be on the quiz (like always). Also, don't forget to make your comments. Happy studying/reading!
As many of you travel back from your Easter break destinations you may be wondering why gas has become so expensive. Planet Money has one idea why. How is OPEC able to keep prices high? Using a supply and demand graph, could you show this? Is limiting the amount supplied really a profit maximizing decision? When producers in America and elsewhere make a push to increase production, would you say that decreasing oil production is OPEC's "best response?"
With any investment position diversity is crucial in protecting your assets. Investment in education is no different as this article from the WSJ shows. Consider this articlde as you move on in your undergraduate careers and meet with your advisors in the coming weeks.
P.S. This article is certainly true for non-business majors as well, so don't be shy when considering elective courses through the business school if you are currently the arts & sciences type.
Actually, it's game theory about pizza. In this article from the NY Times the story of three pizza sellers in New York is told. This type strategic business behavior, or game, is known as a Bertrand pricing game. The basic gist is this; each player's dominant strategy is to be the low cost pizza provider. So, as you would assume, the lowest price possible prevails. This is great for us consumers, but what about the producers? What is happening to consumer and producer surplus as the Bertand game plays out? Do you think it is fair for the pizza sellers to keep slashing their prices? What if this was Dominos vs. a local pizza seller, would you still think it was fair?
Ever thought of brewing your own beer? As it turns out, many do in Africa. This is a market that is untapped though, which means profit opportunities could abound. "Brewers are betting that Africa’s fast-growing middle class will want to trade up." What is the author implicitly saying about beer in the previous statement? At the end of the article it is said that the firm expanding its beer distribution is a "force for good", do you agree?
From the WSJ - It looks like more people are being hired according to this post from Real Time Economics. While this is an excellent sign, what do you think could be causing this drop in jobless claims? If the quantity supplied of labor is greater than the quantity demanded then we have unemployment (i.e. a large amount of jobless claims). Whenever Qs > Qd for labor then what happens to the price of labor (wages)? Could the price of other inputs (capital, land, etc..) also affect the hiring rate?
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