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##### The manager of your company?s pension fund

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13 The manager of your company?s pension fund is compensated based entirely on fund performance, he earned \$1.2 million last year. As a result, the fund is contemplating a proposal to cap the compensation of fund managers at \$100,000. Provide an argument against the proposal.;16 Suppose that Honda is on the verge of signing a 15-year contract with TRW to supply airbags. The terms of the contract include providing Honda with 85 percent of the airbags used in new automobiles. Just prior to signing the contract, a manager reads that one of TRW?s competitors has introduced a comparable airbag using new technology that reduces the cost by 30 percent. How would this information affect Honda?s optimal contract length with TRW?;1 Ten firms compete in a market to sell product X. The total sales of all firms selling the product are \$1 million. Rank the firms? sales from highest to lowest, we find the top four firms? sales to be \$175,000, \$150,000, \$125,000, and \$100,000, respectively. Calculate the four-firm concentration ratio in the market for product X

Paper#26544 | Written in 18-Jul-2015

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