Social Dynamo Corporation earned profits last year of $49 million on salesof $500 million. During the same period, its major competitor—EIOCorp.—enjoyed sales of $490 million and earned profits of $52 million.Currently, Social Dynamo is negotiating a deal in which it would acquire theassets of EIO in a transaction Wall Street values at $120 million. A successfulmerger between the two companies is expected to raise prices in the market542Managerial Economics and Business Strategy14.15.16.17.18.by 2 percent. Is Social Dynamo obligated to notify the U.S. Justice Depart-ment and the Federal Trade Commission of its merger intentions? Explain.A well-known conglomerate that manufactures a multitude of noncompetingconsumer products instituted a corporatewide initiative to encourage themanagers of its many divisions to share consumer demographic information.However, since the initiative was implemented, the CEO has noticed that lessinformation is available than ever. Why do you think the CEO’s plan backfired?You are the manager of a paper mill and have been subpoenaed to appearbefore a joint session of the Senate Consumer Affairs and the Senate Environ-mental subcommittees. The Consumer Affairs Subcommittee is interested inyour testimony about the pricing practices of your company because a recentnews magazine reported that your markups are 250 percent. The Environmen-tal Subcommittee is interested in exploring ways to reduce the pollution asso-ciated with your paper mill. In particular, you know that one senator on theEnvironmental Subcommittee will ask you to justify why the firm should notbe charged a per-unit tax on the firm’s output to compensate for the pollutionit discharges into a major river. Devise a game plan for responding to thequestions that will be raised in the joint session of the subcommittees.

A cylindrical resistor element on a circuit board dissipates
0.15 Wof power in an environment at 40°C. The resistor
is 1.2 cm long, and has a diameter of 0.3 cm. Assuming heat to
be transferred uniformly from all surfaces, determine (a) the
amount of heat this resistor dissipates during a 24-h period,
(b) the heat flux on the surface of the resistor, in W/m2, and
(c) the surface temperature of the resistor for a combined convection
and radiation heat transfer coefficient of 9 W/m2 · °C.

Between 1972 and 1981, Texaco sold gasoline to independent Texaco retailersat “retail tank wagon prices” but granted substantial discounts to distributorsGull and Dompier. Gull resold the gas under its own name. Dompier resoldthe gas under the Texaco brand name to retail stations and entered the retailmarket directly. Since neither Gull nor Dompier had significant storage facili-ties, both distributors picked up gas directly from the Texaco plant and deliv-ered it to their retail outlets. As a result, the sales volume increasedsubstantially at the retail stations purchasing gas from these distributors, whileindependent Texaco retailers suffered a corresponding sales decline. In 1976,independent Texaco retailers filed suit against Texaco. In 1990, the SupremeCourt of the United States found that Texaco had indeed violated antitrust law.Which law do you think Texaco was found guilty of violating?13. Social Dynamo Corporation earned profits last year of $49 million on salesof $500 million. During the same period, its major competitor—EIOCorp.—enjoyed sales of $490 million and earned profits of $52 million.Currently, Social Dynamo is negotiating a deal in which it would acquire theassets of EIO in a transaction Wall Street values at $120 million. A successfulmerger between the two companies is expected to raise prices in the market542Managerial Economics and Business Strategy14.15.16.17.18.by 2 percent. Is Social Dynamo obligated to notify the U.S. Justice Depart-ment and the Federal Trade Commission of its merger intentions? Explain.A well-known conglomerate that manufactures a multitude of noncompetingconsumer products instituted a corporatewide initiative to encourage themanagers of its many divisions to share consumer demographic information.However, since the initiative was implemented, the CEO has noticed that lessinformation is available than ever. Why do you think the CEO’s plan backfired?

Between 1972 and 1981, Texaco sold gasoline to independent Texaco retailersat “retail tank wagon prices” but granted substantial discounts to distributorsGull and Dompier. Gull resold the gas under its own name. Dompier resoldthe gas under the Texaco brand name to retail stations and entered the retailmarket directly. Since neither Gull nor Dompier had significant storage facili-ties, both distributors picked up gas directly from the Texaco plant and deliv-ered it to their retail outlets. As a result, the sales volume increasedsubstantially at the retail stations purchasing gas from these distributors, whileindependent Texaco retailers suffered a corresponding sales decline. In 1976,independent Texaco retailers filed suit against Texaco. In 1990, the SupremeCourt of the United States found that Texaco had indeed violated antitrust law.Which law do you think Texaco was found guilty of violating?13. Social Dynamo Corporation earned profits last year of $49 million on salesof $500 million. During the same period, its major competitor—EIOCorp.—enjoyed sales of $490 million and earned profits of $52 million.Currently, Social Dynamo is negotiating a deal in which it would acquire theassets of EIO in a transaction Wall Street values at $120 million. A successfulmerger between the two companies is expected to raise prices in the market542Managerial Economics and Business Strategy14.15.16.17.18.by 2 percent. Is Social Dynamo obligated to notify the U.S. Justice Depart-ment and the Federal Trade Commission of its merger intentions? Explain.A well-known conglomerate that manufactures a multitude of noncompetingconsumer products instituted a corporatewide initiative to encourage themanagers of its many divisions to share consumer demographic information.However, since the initiative was implemented, the CEO has noticed that lessinformation is available than ever. Why do you think the CEO’s plan backfired?

A 12-m-long and 5-m-high wall is constructed of two
layers of 1-cm-thick sheetrock (k 0.17 W/m · °C) spaced
12 cm by wood studs (k 0.11 W/m · °C) whose cross section
is 12 cm
5 cm. The studs are placed vertically 60 cm apart,
and the space between them is filled with fiberglass insulation
(k 0.034 W/m · °C). The house is maintained at 20°C and the
ambient temperature outside is 5°C. Taking the heat transfer
coefficients at the inner and outer surfaces of the house to be
8.3 and 34 W/m2 · °C, respectively, determine (a) the thermal
resistance of the wall considering a representative section of it
and (b) the rate of heat transfer through the wall

The decision to extubate intensive care patients is critical to the long-term recovery of patients. Extubate too early and the patient may still have difficulties breathing and may need to be re-intubated which leads to delayed recovery and may even increase mortality. Delaying extubation exposes patients to many risks e.g. long term damage to the patient’s lungs and airways and infections