12. under the terms of the current contractual agreement. burger queen (bq) is entitled to 20 percent of the revenue earned by each of its franchises. bq's best-selling item is the slopper (it slops out of the bun). bq supplies the ingredients for the slopper (bun. mystery meat. etc.) at cost to the franchise. the franchisee's average cost per slopper (including ingredients. labor cost. and so on) is $.80. at a particular franchise restaurant. weekly demand for sloppers is given by p = 3.00 - q/800. a. if bq sets the price and weekly sales quantity of sloppers. what quantity and price would it set? how much does bq receive? what is the franchisee's net profit? b. suppose the franchise owner sets the price and sales quantity. what price and quantity will the owner set? (hint: remember that the owner keeps only $.80 of each extra dollar of revenue earned.) how does the total profit earned by the two parties compare to their total profit in part (a)?

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Why entrepreneurs start businesses. a) monopolistic competition b) perfect competition c) sole proprietorship d) profit motive

Mbo works by objectives moving through the organization; that is, top managers set general organizational objectives, which are translated into divisional objectives, which are translated into departmental objectives. the hierarchy ends in individual objectives set by each employee. this is an example of mbo working as objectives through the organization.