{"id":107922,"date":"2022-12-02T06:51:43","date_gmt":"2022-12-02T06:51:43","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/week-7-discussion-managerial-econ-and-glob-eco-550-managerial-economics-and-globalization-strayer-university\/"},"modified":"2022-12-02T06:51:43","modified_gmt":"2022-12-02T06:51:43","slug":"week-7-discussion-managerial-econ-and-glob-eco-550-managerial-economics-and-globalization-strayer-university","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/week-7-discussion-managerial-econ-and-glob-eco-550-managerial-economics-and-globalization-strayer-university\/","title":{"rendered":"Week 7 discussion managerial econ and glob | ECO 550 &#8211; Managerial Economics and Globalization | Strayer University"},"content":{"rendered":"<div>\n<p>\u00a0<strong>Week 7 Discussion<\/strong>\u00a0<\/p>\n<h4><strong>Context<\/strong><\/h4>\n<p>Asymmetric information and\/or imperfect information can cause two forms of market failure: 1) adverse selection and 2) moral hazard.\u00a0Asymmetric information is where one party in the transaction has more information than\u00a0the other party in the transaction.\u00a0Imperfect information is a situation in which neither party has perfect information about the good\/service being exchanged in a transaction.\u00a0Such goods and services are sometime referred to as &#8220;experience goods.&#8221;<\/p>\n<p>In the late 1990s, car leasing was very popular in the United States. A customer would lease a car from the manufacturer for a set term, usually two years, and then have the option of keeping the car. If the customer decided to keep the car, the customer would pay a price to the manufacturer, the \u201cresidual value,\u201d computed as 60% of the new car price. The manufacturer would then sell the returned cars at auction. In 1999, the manufacturer lost an average of $480 on each returned car. (The auction price was, on average, $480 less than the residual value.)<\/p>\n<p><strong>Also see the help provided in the discussion preparation.<\/strong><\/p>\n<h4><strong>Instructions<\/strong><\/h4>\n<p><strong>For your discussion post, address the following within the context of the above scenario:<\/strong><\/p>\n<ul>\n<li>Why was the manufacturer losing money on this program? Was this a problem of adverse selection or moral hazard?<\/li>\n<li>What should the manufacturer do to stop losing money?\u00a0Will rational actors use rules of thumb?<\/li>\n<\/ul>\n<p>To earn full credit for your discussion, you must complete one post and one follow-up or reply to a classmate. Make sure both the post and the reply focus on the questions asked.<\/p>\n<p>This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0Week 7 Discussion\u00a0 Context Asymmetric information and\/or imperfect information can cause two forms of market failure: 1) adverse selection and 2) moral hazard.\u00a0Asymmetric information is where one party in the transaction has more information than\u00a0the other party in the transaction.\u00a0Imperfect information is a situation in which neither party has perfect information about the good\/service being [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-107922","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/107922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=107922"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/107922\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=107922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=107922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=107922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}