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Final 21-22 NO.2

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11 views4 pages

Final 21-22 NO.2

Uploaded by

chunchan2k3
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Câu 1: Analyse the advantages of manager-controlled firms.

Is this kind
of firm getting more popular in Vietnam, why?

*Advantages of Manager-Controlled Firms


-​ Expertise and Professionalism: Managers are often experienced professionals with
specific knowledge in strategic planning, financial management, and operations. This
expertise allows for better decision-making compared to owner-managers who may lack
specialized skills.
-​ Efficiency in Decision-Making: Professional managers focus exclusively on running the
business, leading to quicker and more effective decisions, especially in complex or large
organizations.
-​ Separation of Ownership and Control: By delegating control to managers, owners
(shareholders) can focus on financial investment and oversight, ensuring smooth
operations and reduced micromanagement.
-​ Scalability and Growth: Professional managers are better equipped to lead firms through
rapid growth and international expansion. Their ability to delegate and manage teams is
crucial for scaling operations.
-​ Risk Mitigation: Managers bring diverse perspectives and analytical rigor to
decision-making, reducing the likelihood of risky or emotionally driven decisions by
owners.
-​ Better Employee and Stakeholder Relationships: Managers trained in organizational
leadership often foster better relationships with employees, suppliers, and other
stakeholders, enhancing collaboration and productivity.
*Is this kind of firm getting more popular in Vietnam, why?
→ Yes, manager-controlled firms are becoming increasingly popular in Vietnam
Manager-controlled firms are becoming increasingly popular in Vietnam due to the
country’s rapid economic growth, globalization, and evolving corporate ecosystem. As
businesses scale, professional managers are essential to handle complex operations, especially in
sectors like technology, manufacturing, and finance. Foreign direct investment (FDI) and global
trade agreements have also introduced international management standards, pushing local firms
to adopt professional structures. Additionally, family-owned businesses face generational
transitions, with many founders delegating control to skilled managers for better scalability.
Improved education, government reforms promoting corporate governance, and investor
demands for transparency further drive this trend. However, challenges such as cultural
resistance and limited experienced talent remain, slowing broader adoption. Overall,
manager-controlled firms align with Vietnam’s modernization and global integration, signaling
continued growth in their popularity.
Câu 2: Explain your understanding about economies of scale and
economies of scope. Give example for each of the types
-​ Economies of scale refer to the cost advantages a firm experiences as it increases
production output. When production scales up, the average cost per unit decreases
because fixed costs (like rent and machinery) are spread over a larger number of goods,
and operational efficiencies are achieved.

Example: A car manufacturing company, such as Toyota, achieves economies of scale by


producing vehicles in high volumes. As the production output increases, the company can
negotiate bulk discounts for raw materials like steel and rubber and invest in more efficient
production machinery, lowering the average cost per car.

-​ Economies of scope refer to the cost advantages a firm experiences by producing a


variety of products rather than focusing on a single product. By sharing resources (e.g.,
technology, distribution channels, or marketing), the firm reduces costs across its product
lines.

Example: Procter & Gamble (P&G), which produces a wide range of personal care products,
achieves economies of scope by utilizing the same marketing, distribution networks, and
research for diverse items like shampoo, toothpaste, and laundry detergent. This reduces costs
compared to producing these products independently.

Câu 3:

a.​
Total cost function for each firm: TC(Q)=1.5Q2−5Q+10
Assume output of firm 1 and firm 2 is Q1 and Q2 respectively
→ Qt=Q1+Q2
→ Market demand: P=95-Q → P=95-Q1-Q2
●​ Profit function of firm 1:
-​ π1 = TR1-TC1 =P1.Q1 - TC1
= (95-Q1-Q2​)Q1​−(1.5Q2−5Q+10) = 95Q1​−Q12​−Q1​Q2​−1.5Q12​+5Q1​−10
= −2.5Q12​+(100−Q2​)Q1​−10
=> Firm 1 maximizes profit when: π1’=0 ⇔ –5Q1 + 100 – Q2 = 0 (1)
→ Reaction function for firm 1: Q1= (100 – Q2)/5 → Q1= 50 – 0,2Q2

●​ Profit function of firm 2:


-​ π2 = TR2-TC2 = P2.Q2 - TC2
= (95-Q1-Q2)*Q2 – (1.5Q22-5Q2+10) = 95Q2 – Q1Q2 – Q22 – 1.5Q22-5Q2+10
= – 2,5Q22 + 100Q2 – Q1Q2 – 10
=> Firm 2 maximizes profit when: π2’=0 ⇔ –5Q2 + 100 – Q1 = 0 (1)
→ Reaction function for firm 2: Q2= (100 – Q1)/5 → Q2= 50 – 0,2Q1

Graph:
b.​ Optimum quantity and price of Cournot:
From (1), (2), the Cournot equilibrium is achieved when
−5Q1 + 100 − Q2 = 0
−5Q2 + 100 − Q1 = 0
→ Q1= Q2 = 16.67

Market quantity: Q = Q1+Q2 = 33.34

Price: P = 95−Q = 95−33.34 = 61.66

→ π1= –2,5Q12 + 100Q1 – Q1Q2 – 10 = 684.385

π2= – 2,5Q22 + 100Q2 – Q1Q2 – 10 = 684.385


Câu 4: (câu này làm giống đề mẫu)

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