Amazon had planned to open a second headquarters in Brooklyn that would have allegedly added 25,000 jobs to the region, increased property values, generated more business for local store owners, and generated additional sales and income tax revenuefor the government. Some people were concerned, however, that increased home prices could lead to higher rent for people who rented apartments in Brooklyn. Which of the following statements are true?O Allowing Amazon to locate its second headquarters in Brooklyn is a Pareto improvement (i.e., makes one or more persons better off without making anyone worse off) even if some renters will have to pay higher rent.O Allowing Amazon to locate its second headquarters in Brooklyn would not be Kaldor-Hicks efficient if some renters will have to pay higher rent.O Allowing Amazon to locate its second headquarters in Brooklyn is a Kaldor-Hicks improvement if the gain in jobs and tax revenue more than offsets any losses experienced by renters.O Allowing Amazon to locate a second headquarters in Brooklyn is both a Pareto and Kaldor-Hicks improvement.O E. All oi ne above.

Amazon had planned to open a second headquarters in Brooklyn that would have allegedly added 25,000 jobs to the region, increased property values, generated more business for local store owners, and generated additional sales and income tax revenue for the government. Some people were concerned, however, that increased home prices could lead to higher rent for people who rented apartments in Brooklyn. Which of the following statements are true?

Amazon had planned to open a second headquarters in Brooklyn that would have allegedly added 25,000 jobs to the region, increased property values, generated more business for local store owners, and generated additional sales and income tax revenue for the government. Some people were concerned, however, that increased home prices could lead to higher rent for people who rented apartments in Brooklyn. Which of the following statements are true?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.2SB

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Carlisle Tire and Rubber, Inc., is considering expanding production to meet potential increases in the demand for one of its tire products. Carlisle’s alternatives are to construct a new plant, expand the existing plant, or do nothing in the short run. The market for this particular tire product may expand, remain stable, or contract. Carlisle’s marketing department estimates the probabilities of these market outcomes to be 0.25, 0.35, and 0.40, respectively. The file P06_31.xlsx (picture of given excel file is attached) contains Carlisle’s payoffs and costs for the various combinations of decisions and outcomes. Identify the strategy that maximizes this tire manufacturer’s expected profit. Perform a sensitivity analysis on the optimal decision, letting each of the monetary inputs vary one at a time plus or minus 10% from its base value, and summarize your findings. Which of the inputs appears to have the largest effect on the best solution?
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