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Homework answers / question archive / 1)What are some examples of entrepreneurs you are familiar with who are diamonds, stars, transformers, and rocket ships? 2)with reference to the extract, discuss two methods of generating business ideas that resulted in Airbnb

1)What are some examples of entrepreneurs you are familiar with who are diamonds, stars, transformers, and rocket ships? 2)with reference to the extract, discuss two methods of generating business ideas that resulted in Airbnb

Economics

1)What are some examples of entrepreneurs you are familiar with who are diamonds, stars, transformers, and rocket ships?

2)with reference to the extract, discuss two methods of generating business ideas that resulted in Airbnb.

3)Consider the following information regarding the production possibilities of France and Germany. You may assume that both countries face constant opportunity costs.

France

Germany

Crepes

Sausages

Crepes

Sausages

20

0

24

0

10

8

12

18

0

16

0

36

You may assume that each of these production plans is efficient, and that both countries face constant opportunity costs. Suppose that eggs, an important ingredient in making Crepes but not Sausages, become much less expensive in France, but there is no change in Germany. Then

   

a.France has comparative advantage in producing Crepes both before and after the change in egg prices.

   

b.France has comparative advantage in producing Crepes before the change in egg prices, but either country could have comparative advantage in producing Crepes after the change in egg prices.  

   

c.Germany has comparative advantage in producing Crepes both before and after the change in egg prices.  

   

d.Germany has comparative advantage in producing Crepes before the change in egg prices, but either country could have comparative advantage in producing Crepes after the change in egg prices.  

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1)

The most succinct answer involves the four new breeds of entrepreneurs: Diamond, Star, Transformer, Rocket Ship. Let me explain.

I came across the "four breeds" while reading the Wall Street Journal. (Sorry, we don't link to paid content.) The WSJ definitions go something like this:

  • Diamonds are charismatic evangelists who aim to revolutionize people's lives. When they succeed, they are game-changers. But when they fail, the Journal says, it can be messy and dramatic. Noted Examples: Mark Zuckerberg, Ted Turner and Steve Jobs.
  • Stars are trendsetters with big personalities who know what's coming next. But they're often one-person shows, the Journal asserted. Noted Examples: Richard Branson, Martha Stewart and Jay Z.
  • Transformers are catalysts for social change; they typically take old-line industries and modernize them, the Journal said. Noted Examples: Roxanne Quimby and Burt Shavitz, inventors of lip balm made from leftover beeswax.
  • Rocket Ships are brilliant tinkerers who strive to deliver cheaper, faster and more efficient market solutions. The succeed with analytics but sometimes fail to get creative, the Journal stated. Noted Examples: Jeff Bezos, Bill Gates and Michael Dell.

2)

The desired two methods for generating business ideas which resulted in Airbnb are mentioned below:

  1. One strategy was to seize the shortage which they saw was likely to emerge within the coming days due to the circumstance and make use of it to start their commerce. The Airbnb originators Joe and Brian took their chance by utilizing the shortage of settlement that would be confronted by the participants of a major plan conference within the town.
    This is one of the strategies of how the commerce thought can be produced. They met modern individuals, opened their entryway for outsiders, and stamped the starting of their commerce with two airbeds and a home-cooked breakfast. And after that they saw their opportunity within the same.

  2. Another strategy they took was to go online by including a tech wizard to their group to assist them open their stage online, where individuals can list their properties for occasions and leasing. They opened modern entryways of openings and extended their market around the world.

And it was said that 75% of their bookings were exterior their essential or beginning showcase, US. Taking the trade online once more made a difference them open and reach more markets and include on different offices and in this manner extend their skyline. Once you begin a trade and no individuals are and have acknowledged the same, you cannot sit back since, in this tornado-like world, each day, modern openings are advancing. Being in a cyber-world, we are as quick as the web and ought to be able to seize openings with this speed. They, too, concentrated and attempted to change over the complaints or issues raised by their partners or posting accomplices into their opportunity by including on more highlights to the trade, which would, afterward on, serve as a boon.

3)

Before change

For france, opportunity cost of C = 8/10= .8 S

In Germany, OC of C = 18/12 = 3/2= 1.5 S

So, France has Lower OC of C, so France has CA comparative advantage in C

So, c, d are false

..

Now after price chsnge, with same level of S, more of C could be produced

Thus opportunity cost of C falls further, Thus france will still have CA in C