For homework 1 and 2
Microsoft’s Decision Making (homework 1)
At the beginning of the chapter you read about Microsoft’s decision to acquire Intuit. Microsoft has made decisions to purchase other companies besides Intuit. A decision by Microsoft to purchase Nokia cell costs Microsoft $7.6 billion dollars.
Do you think Microsoft’s decisions to purchase firms make sound economic sense? Why or why not? Please explain your answer by incorporating materials from Chapters 5, 6, and 7.
Conglomerate Mergers and Obscene Profits (homework 2)
A host of best-selling books advance the thesis that increases in conglomerate mergers and concentration of U.S. industry are responsible for “obscene profits.”
Do you agree or disagree? Defend your choice. Explain, using the Lerner Index.