Managerial economics 08/15

  1.      During the aboriginal canicule of the Internet, best dot-coms were apprenticed by revenues rather than profits. A ample cardinal were alike apprenticed by “hits” to their armpit rather than revenues. This all afflicted in aboriginal 2000, however, back the prices of barren dot-com stocks plummeted on Wall Street. Best analysts accept attributed this to a acknowledgment to rationality, with investors absorption already afresh on fundamentals like balance growth.  ●   Does this beggarly that, during the 1990s, dot-coms that focused on “hits” rather than revenues or profits had bad business plans? Explain. (Chapter13- Problem 14) 2.      During the dot-com era, mergers amid some allowance houses resulted in the accepting firm   advantageous a exceptional on the adjustment of $100 for anniversary of the acquired firm’s customers.  ●   Is there a business account for such a strategy?  ●   Do you anticipate these affairs are met in the allowance business?