1.You are the CEO of Exxon/Mobil: Your head of Research Department informs you that his chemists...

Question

1.You are the CEO of Exxon/Mobil: Your head of Research Department informs you that his chemists have devised an additive that doubles the mileage of Exxon/Mobil gasoline. What do you do?
2. Your friend tells you that he just bought a new set of speakers for his stereo system that cost 3 times as much as his former speakers. When asked if the new speakers are 3 times better he says no. So, why did he buy them?
3. Discuss the Henry George idea for a single tax on real estate.
4. Why did the California State Lottery extend the payoff period from 20 years to 26 years?
5. Why have health care costs risen to steeply in the past 20 years?
6. Discuss the merits of pollution credits versus carbon taxing.
Request: One paragrah short answer for each question

David · Accepted Answer

SOLUTIONS 
1. You are the CEO of Exxon/Mobil: Your head of Research Department informs you that his 
chemists have devised an additive that doubles the mileage of Exxon/Mobil gasoline. What do 
you do? 
Answer 1. If I am the CEO of Exxon/ Mobil, then I would make the decision to innovate the 
product by using the new technology devised by the research and development department. 
It has been devised that this new technology involves use of an additive that will double the 
mileage of the Exxon/ Mobil gasoline. If this new addition is made to the product, and 
proper campaigning is done to publicize the increased mileage advantage of the product, 
then this will ensure increased sales of the product. Before making the decision to innovate 
the product, I will make sure that the cost of the new additive does not increase the cost of 
production much. If the additive is costly and say, more than doubles the cost of production 
of the product, then the price will also have to be revised for the product such that they 
cover the costs; but then the sales of product can fall sharply because consumers may not 
buy a product that doubles the mileage but costs even more than double. So, it must be 
ensured that the additive is not too costly, and also proper price revision and advertising 
will be done to ensure increased sales and also increased profits in form of reward for 
innovation for the company.
2. Your friend tells you that he just bought a new set of speakers for his stereo system that cost 3 
times as much as his former speakers. When asked if the new speakers are 3 times better he says 
no. So, why did he buy them? 
Answer 2. It has been observed that the friend bought expensive speakers as expensive as 3 
times the old ones, but it was known to him that they are not 3 times better than old ones.

1.You are the CEO of Exxon/Mobil: Your head of Research Department informs you that his chemists have devised an additive that doubles the mileage of Exxon/Mobil gasoline. What do you do? 2. Your...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment