Case Assignments 10 & 11

Please read the scenario in the below case assignments (Chapter 10 & 11 case assignments are the 1st two documents) and answer the questions in each case assignment. 

  • Chapter 10 – “Analyzing Managerial Decisions:”
  • Chapter 11 – “Analyzing Managerial Decisions: Tipping in Restaurants”

*When you are answering the questions remember to focus on the economic reasoning behind the problems.  Also use the information in the chapter to suggest economic solutions.  Try to include outside sources along with your text book.*

*Book Reference: Brickley, J.A., Smith, C.W., & Zimmerman, J.L (2009). Managerial economics and organizational architecture (6th ed.). New York: McGraw-Hill/Irwin




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Case Assignments 10 &11

Analyzing Managerial Decisions:

How does eBay create value?

            eBay creates value through connecting sellers and buyers on an online platform. The company has created a virtual market where persons can both buy and sell different types of commodities in a safe and organized way. Therefore, eBay provides a platform for persons who not have time to visit physical markets to shop from the comforts of their homes or offices (Brickley, Smith & Zimmerman, 2009). Additionally, the firm ensures the transactions are conducted safely and the prices are reasonable.

(620 words)

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