Eco 550: Managerial Economics and Globalization

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“Market Structures and Cost Management” Please respond to the following:

  • From the scenario for Katrina’s Candies, determine the appropriate
    type of market structure for the situation in question. Cite at least
    four (4) defining characteristics that have helped you reach this
    decision regarding the appropriateness of the chosen structure.
  • Imagine that you are a manager of a chemical company. An accident
    has occurred in which chemicals leaked into the ground water nearby. The
    community is unaware of the accident. Compare the primary costs
    involved in cleaning up the water immediately (and thus confessing)
    versus hiding your culpability now and possibly paying more in the
    future. Predict the impact on profitability in both situations.

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