Assignment # 1
1. Why should managers use study supply, demand and their elasticities?
2. What is the difference between Accounting and Economic Profit?
Case Study:
3-2 House Closing
Youve entered into a contract to purchase a new house, and the closing is scheduled for next week. Its typical for some last-minute bargaining to occur at the closing table, where sellers often try to tack on extra fees. You have three options for the closing: (1) attend yourself, (2) send an attorney authorized to close only per the previously negotiated terms, or (3) pre-sign all the closing documents per the current terms and not attend the closing. Consider each bargaining position; which position would you go with and why?
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