The concept of depreciation

Question 1: Please discuss what you understand under the concept of depreciation. Please apply it to a real life example of yourself.

Question 2: Play the game. Do the game to 52 weeks it takes about 10 to 15 minutes to do. Try to establish a strategy from the start:

https://beergame.masystem.se/

What is the bull whip effect and why does it happen?

What can we do to reduce this effect?

Write a summary of your game experience and your individual conclusions

Question 3: Bearing in mind your own experience, what recommendations do you have for companies to reward and motivate their employees at a corporate level, whether financially or otherwise? What elements of a compensation & benefits package have you discovered from your research that could be most effective in increasing staff engagement?

Question 4: Recall a case where the situation that you were in influenced your purchasing decision. Detail the various cognitive steps that took you from problem recognition to final purchase. steps include Awareness of Need, Information Search, Evaluation of Alternatives, Purchase decision, and Post-Purchase Evaluation.

Question 5: Answer one of the below questions (50% of the grade) and make a constructive comment on one of your peers’ comments (50% of the grade). Cite the sources consulted and include the references at the end.

1. In California, farmers pay a lower price for water than do city residents. What is this method of allocation of water resources? Is this allocation of water efficient? Is this use of scarce water fair? Why or why not?

2. If farmers were charged the same price as city residents pay, how would the price of agricultural produce, the quantity of produce grown, consumer surplus, and producer surplus change?

3. New Zealand’s private forests

In the early 1990s, the government auctioned half the national forests, converting these forests from public ownership to private ownership. The government’s decision was an incentive to get the owners to operate like farmers—that is, take care of the resource and to use it to make a profit.

Peer’s Comment:

Water is clearly the #1 source of input in the whole agriculture process.

If given the circumstances that farmers are charged the same price for water as city residents, their costs increase.

And if the costs increases then the supply of water decreases automatically. So the cost of water could rise therefore the quantity decrease.

Consumer surplus decreases and producer surplus also decreases.