Question: The graph that accompanies this question

> To what extent is differing national culture relevant to an understanding of the causes of accounting differences and therefore to the process of classification of countries?

> To what extent have the accounting classifications become irrelevant because of international harmonization?

> Do the accounting classifications suggest that there is or was such a thing as Anglo- Saxon accounting?

> When producing classifications in the field of comparative international accounting, what should one be classifying?

> If you were trying to predict which financial reporting regulations and practices would be found in various African countries, which non-accounting variables would you measure?

> Are the international differences in the formats of financial statements a major obstacle to comparing the statements?

> How do the causal factors discussed in the chapter affect corporate governance structures in different countries?

> Discuss the view that the costs of establishing and maintaining accounting standards enforcement bodies are likely in most countries to exceed the benefits.

> Why do the United States and France have stock exchange regulators as accounting standards enforcement bodies, whereas the United Kingdom does not?

> Why is there no pan-European accounting standards enforcement body in the European Union? Ought one to be established?

> Why is it difficult to establish a causal relationship between specific external factors and international differences in accounting? Discuss the methodological problems in identifying possible causes.

> Why have several countries recently introduced auditor oversight bodies? Is this a positive or a negative development?

> ‘Enforcement bodies merely duplicate the work of auditors.’ Discuss.

> A number of companies voluntarily prepare segment reports beyond what is required by regulation. Given the difficulties faced by regulators in developing rules for segment reporting, is regulation really necessary and/or desirable?

> Using segment reporting as an example, explain how standard-setters could use research when planning to impose extra disclosure requirements.

> ‘Research shows that line-of-business reporting is much more useful than geographical segmental reporting.’ Discuss.

> Discuss the view that IFRS 8 ignores the needs of many stakeholders.

> Discuss to what extent segment reporting is beneficial to different user/stakeholder groups.

> In what senses can certain aspects of auditing be described as ‘international’?

> Why do auditing standards differ internationally?

> Discuss the effect that the growth of multinational enterprises has had on audit firms.

> Do international differences in the rules for the calculation of taxable income cause accounting differences, or is the influence the other way round?

> What major contributions to accounting and its terminology have been made historically by the following countries: Italy, the United Kingdom, the United States and Japan?

> Use the following one-shot, normal-form game to answer the following questions. a. Find each player’s dominant strategy, if it exists. b. Find each player’s secure strategy. c. Find the Nash equilibrium.

> You manage a company that competes in an industry that is comprised of five equal-sized firms. A recent industry report indicates that a tariff on foreign imports would boost industry profits by $30 million—and that it would only take $5 million in expen

> An office manager is concerned with declining productivity. Despite the fact that she regularly monitors her clerical staff four times each day—at 9:00 am, 11:00 am, 1:00 pm, and again at 3:00 pm—office productivity has declined 30 percent since she assu

> Japanese officials are considering a new tariff on imported pork products from the United States in an attempt to reduce Japan’s reliance on U.S. pork. Due to political pressure, the U.S. International Trade Representative’s (ITR) office is also consider

> Both Google and Amazon are major players in the smart home market, using their own internally developed smart home control system (Google Assistant and Alexa, respectively). Suppose each is considering a new round of investments into their smart home off

> You are the manager of Gear Net and must decide how many Internet hubs to produce to maximize your firm’s profit. Gear Net and its only rival (Net Works) sell dual-speed Internet hubs that are identical from consumers’

> You are a pricing manager at Argyle Inc.—a medium-sized firm that recently introduced a new product into the market. Argyle’s only competitor is Baker Company, which is significantly smaller than Argyle. The management

> At a time when demand for ready-to-eat cereal was stagnant, a spokesperson for the cereal maker Kellogg’s was quoted as saying, “ . . . for the past several years, our individual company growth has come out of the other fellow’s hide.” Kellogg’s has been

> You are the manager of a firm that manufactures front and rear windshields for the automobile industry. Due to economies of scale in the industry, entry by new firms is not profitable. Toyota has asked your company and your only rival to simultaneously s

> Price comparison services on the Internet (as well as “shopbots”) are a popular way for retailers to advertise their products and a convenient way for consumers to simultaneously obtain price quotes from several firms selling an identical product. Suppos

> Suppose the own price elasticity of market demand for retail gasoline is −0.8, the Rothschild index is 0.5, and a typical gasoline retailer enjoys sales of $1.5 million annually. What is the price elasticity of demand for a representative gasoline retail

> Suppose a UAW labor contract with General Dynamics is being renegotiated. Some of the many issues on the table include job security, health benefits, and wages. If you are an executive in charge of human resource issues at General Dynamics, would you be

> Coca-Cola and PepsiCo are the leading competitors in the market for cola products. In 1960 Coca-Cola introduced Sprite, which today is among the worldwide leaders in the lemon-lime soft drink market and ranks in the top 10 among all soft drinks worldwide

> Suppose Toyota and Honda must decide whether to make a new breed of side-impact airbags standard equipment on all models. Side-impact airbags raise the price of each automobile by $1,000. If both firms make side-impact airbags standard equipment, each co

> While there is a degree of differentiation between major grocery chains like Albertsons and Kroger, the regular offering of sale prices by both firms for many of their products provides evidence that these firms engage in price competition. For markets w

> Using the same payoff matrix as in question 9, suppose this game is infinitely repeated and that the interest rate is sufficiently “low.” Identify trigger strategies that permit players 1 and 2 to earn equilibrium payoffs of 140 and 180, respectively, in

> Use the following payoff matrix to answer the following questions. Suppose this is a one-shot game: a. Determine the dominant strategy for each player. If such strategies do not exist, explain why not. b. Determine the secure strategy for each player. If

> Use the following payoff matrix for a one-shot game to answer the accompanying questions. a. Determine the Nash equilibrium outcomes that arise if the players make decisions independently, simultaneously, and without any communication. Which of these out

> Use the following extensive-form game to answer the following questions. a. List the feasible strategies for player 1 and player 2. b. Identify the Nash equilibria to this game. c. Find the subgame perfect equilibrium.

> Consider a two-player, sequential-move game where each player can choose to play right or left. Player 1 moves first. Player 2 observes player 1’s actual move and then decides to move right or left. If player 1 moves right, player 1 receives $0 and playe

> Provide a real-world example of a market that approximates each oligopoly setting, and explain your reasoning. a. Cournot oligopoly. b. Stackelberg oligopoly. c. Bertrand oligopoly.

> An industry consists of three firms with sales of $225,000, $45,000, and $315,000. a. Calculate the Herfindahl-Hirschman index (HHI). b. Calculate the four-firm concentration ratio (C4). c. Based on the FTC and DOJ Horizontal Merger Guidelines described

> Consider a Bertrand oligopoly consisting of four firms that produce an identical product at a marginal cost of $140. Analysts estimate that the inverse market demand for this product is P = 400 − 5Q. (LO2) a. Determine the equilibrium level of output in

> The inverse demand for a homogeneous-product Stackelberg duopoly is P = 16,000 − 4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 4,000QL and CF(QF) = 6,000QF. (LO2, LO3) a. What is the follower’s reaction function? b.

> The following diagram illustrates the reaction functions and isoprofit curves for a homogeneous- product duopoly in which each firm produces at constant marginal cost. a. If your rival produces 50 units of output, what is your optimal level of output? b.

> Analysts have estimated inverse market demand in a homogeneous-product Cournot duopoly to be P = 200 − 3(Q1 + Q2). They estimate costs to be C1(Q1) = 26Q1 and C2(Q2) = 32Q2. a. Determine the reaction function for each firm. b. Calculate each firm’s equil

> Your firm competes in a local duopoly. You’ve hired consultants to examine how your rival responds to changes in your prices. To do this, over a period of time, your consultants helped your firm to experiment with different price points and observe your

> You are a new entrant in a market with just one incumbent, who sells a roughly equivalent product. You initially take on the follower role when it comes to choosing the amount of your product to manufacture. In researching your market, youâ€&#

> In the late 1990s, Vanguard Airlines operated as a low-cost carrier, offering low prices and limited services, out of Kansas City, Missouri. Not long after its inception, Vanguard began offering a significant number of flights based out of Midway Interna

> In an attempt to increase tax revenues, legislators in several states have introduced legislation that would increase state excise taxes. Examine the impact of such an increase on the equilibrium prices paid and quantities consumed by consumers in market

> Jones is the manager of an upscale clothing store in a shopping mall that contains only two such stores. While these two competitors do not carry the same brands of clothes, they serve a similar clientele. Jones was recently notified that the mall is goi

> Ten firms compete in a market to sell product X. The total sales of all firms selling the product are $3 million. Ranking the firms’ sales from highest to lowest, we find the top four firms’ sales to be $425,000, $385,000, $320,000, and $290,000, respect

> PC Connection and CDW are two online retailers that compete in an Internet market for digital cameras. While the products they sell are similar, the firms attempt to differentiate themselves through their service policies. Over the last couple of months,

> During the 1980s, most of the world’s supply of lysine was produced by a Japanese company named Ajinomoto. Lysine is an essential amino acid that is an important livestock feed component. At this time, the United States imported most of the world’s suppl

> You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two firms’ products are viewed as identical by most consumers. The relevant cost functions are C (Qi) = 4Qi, and the inverse market demand curve for this uni

> The market for a standard-sized cardboard container consists of two firms: Composite Box and Fiberboard. As the manager of Composite Box, you enjoy a patented technology that permits your company to produce boxes faster and at a lower cost than Fiberboar

> You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your product is better than the competition’s, the government purchasing agent views the products as identical and purchases from

> Semi-Salt Industries began its operation in 1975 and remains the only firm in the world that produces and sells commercial-grade polyglutamate. While virtually anyone with a degree in college chemistry could replicate the firm’s formula, due to the relat

> The opening statement on the website of the Organization of Petroleum Exporting Countries (OPEC) says its members seek “. . . to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on

> You are the manager of the only firm worldwide that specializes in exporting fish products to Japan. Your firm competes against a handful of Japanese firms that enjoy a significant first-mover advantage. Recently, one of your Japanese customers has calle

> The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers. Hull and Inverted V are located across the street from each other and can observe the prices posted on each other’s mar

> You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered computers to businesses. From the two businesses’ perspectives, the two products are indistinguishable. The large investment required to bui

> Suppose that the U.S. Congress passes legislation that imposes a one-time lump-sum tariff on the product that a foreign firm exports to the United States. a. What happens to the foreign firm’s marginal cost curve as a result of the lump-sum tariff? b. Wi

> Ford executives announced that the company would extend its most dramatic consumer incentive program in the company’s long history—the Ford Drive America Program. The program provides consumers with either cash back or zero percent financing for new Ford

> Suppose a single firm produces all of the output in a contestable market. Analysts determine that the market inverse demand function is P = 150 − 2Q, and the firm’s cost function is C (Q) = 4Q. Determine the firm’s equilibrium price and corresponding pro

> Determine whether each of the following scenarios best reflects features of Sweezy, Cournot, Stackelberg, or Bertrand duopoly: a. Neither manager expects her own output decision to impact the other manager’s output decision. b. Each manager charges a pri

> Consider a homogeneous-product duopoly where each firm initially produces at a constant marginal cost of $200 and there are no fixed costs. Determine what would happen to each firm’s equilibrium output and profits if firm 2’s marginal cost increased to $

> Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600 − 3Q. Each firm produces at a constant marginal cost of $300 and has no fixed costs. Use this information to compare the output levels and profits in setting

> You are the manager of a monopolistically competitive firm, and your demand and cost functions are estimated as Q = 36 − 4P and C(Q) = 4 + 4Q + Q2. (LO1, LO3, LO5) a. Find the inverse demand function for your firm’s product. b. Determine the profit-maxim

> The accompanying diagram shows the demand, marginal revenue, and marginal cost of a monopolist. a. Determine the profit-maximizing output and price. b. What price and output would prevail if this firm’s product were sold by price-taking

> You are the manager of a firm that produces a product according to the cost function C(qi) = 160 + 58qi − 6qi 2 + qi 3. Determine the short-run supply function if: a. You operate a perfectly competitive business. b. You operate a monopoly. c. You operate

> You are the manager of a monopoly, and your analysts have estimated your demand and costs functions as P = 300 − 3Q and C(Q) = 1,500 + 2Q2, respectively. a. What price–quantity combination maximizes your firm’s profits? b. Calculate the maximum profits.

> The following graph summarizes the demand and costs for a firm that operates in a monopolistically competitive market. a. What is the firm’s optimal output? b. What is the firm’s optimal price? c. What are the firm&aci

> Consider a competitive market served by many domestic and foreign firms. The domestic demand for these firms’ product is Qd = 600 − 2P. The supply function of the domestic firms is QSD = 200 + P, while that of the foreign firms is QSF = 250. a. Determine

> A firm sells its product in a perfectly competitive market where other firms charge a price of $110 per unit. The firm estimates its total costs as C(Q) = 70 + 14Q + 2Q2. (LO3) a. How much output should the firm produce in the short run? b. What price sh

> The following graph summarizes the demand and costs for a firm that operates in a perfectly competitive market. a. What level of output should this firm produce in the short run? b. What price should this firm charge in the short run? c. What is the firm

> Last month you assumed the position of manager for a large car dealership. The distinguishing feature of this dealership is its “no hassle” pricing strategy; prices (usually well below the sticker price) are posted on the windows, and your sales staff ha

> The owner of an Italian restaurant has just been notified by her landlord that the monthly lease on the building in which the restaurant operates will increase by 20 percent at the beginning of the year. Her current prices are competitive with nearby res

> The French government announced plans to convert state-owned power firms EDF and GDF into separate limited companies that operate in geographically distinct markets. BBC News reported that France’s CFT union responded by organizing a mass strike, which t

> Recently, the spot market price of U.S. hot rolled steel plummeted to $400 per ton. Just one year ago, this same ton of steel cost $700. According to Metals Monitor, the drop in price was due to falling oil prices, along with a rise in cheap imports and

> In a statement to P&G shareholders, the CEO of Gillette (which is owned by P&G) indicated, “Despite several new product launches, Gillette’s advertising-to-sales declined dramatically . . . to 7.5 percent last year. Gillette’s advertising spending, in fa

> You are a manager at Spacely Sprockets—a small firm that manufactures Type A and Type B bolts. The accounting and marketing departments have provided you with the following information about the per-unit costs and demand for Type A bolt

> You are the general manager of a firm that manufactures personal computers. Due to a soft economy, demand for PCs has dropped 50 percent from the previous year. The sales manager of your company has identified only one potential client, who has received

> You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university. More than 90 percent of your clientele consists of college students. College Computers is not the only firm th

> Evaluate this statement: “If the United States imposed a uniform excise tariff on all foreign imports, all U.S. businesses and workers would benefit. Consequently, if a bill to impose a uniform excise tariff were introduced in the U.S. Congress, it would

> The second-largest public utility in the nation is the sole provider of electricity in 32 counties of southern Florida. To meet the monthly demand for electricity in these counties, which is represented by the estimated inverse demand function P = 1,200

> You are the manager of a small pharmaceutical company that received a patent on a new drug three years ago. Despite strong sales ($150 million last year) and a low marginal cost of producing the product ($0.50 per pill), your company has yet to show a pr

> When the first Pizza Hut opened its doors back in 1958, it offered consumers one style of pizza: its Original Thin Crust Pizza. Since its modest beginnings, Pizza Hut has established itself as the leader of the $25 billion pizza industry. Today, Pizza Hu

> You are the manager of a small U.S. firm that sells nails in a competitive U.S. market (the nails you sell are a standardized commodity; stores view your nails as identical to those available from hundreds of other firms). You are concerned about two eve

> The CEO of a major automaker overheard one of its division managers make the following statement regarding the firm’s production plans: “In order to maximize profits, it is essential that we operate at the minimum point of our average total cost curve.”

> There are two workers. Each worker’s demand for a public good is P = 20 − Q. The marginal cost of providing the public good is $24. The accompanying graph summarizes the relevant information. a. What is the socially ef

> You are an industry analyst who specializes in an industry where the market inverse demand is P = 200 − 4Q. The external marginal cost of producing the product is MC External = 6Q, and the internal cost is MC Internal = 12Q. (LO1) a. What is the socially

> Suppose that, prior to the passage of the Truth in Lending Simplification Act and Regulation Z, the demand for consumer loans was given by Q pre-TILSA d = 12 − 100P (in billions of dollars) and the supply of consumer loans by credit unions and other lend

> Enrodes is a monopoly provider of residential electricity in a region of northern Michigan. Total demand by its 3 million households is Qd = 1,500 − 2P, and Enrodes can produce electricity at a constant marginal cost of $4 per megawatt-hour. Consumers in

> The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to –4. The firm’s marginal cost is constant at $25 per unit. a. Express the firm’s marginal revenue as a function of its price. b. Determine the

> Section 16(a) of the Securities and Exchange Act of 1934, as amended in 1990, requires that the officers, directors, and principal shareholders of companies disclose the extent of their ownership of equity securities of the company and any changes in the

> You are the manager of a paper mill and have been subpoenaed to appear before a joint session of the Senate Consumer Affairs and the Senate Environmental subcommittees. The Consumer Affairs Subcommittee is interested in your testimony about the pricing p