Ashford BUS 640 Week 3 Discussions 1 and 2

Employee
Benefits
Increasingly,
employees are being allowed to choose benefit packages from a menu of items.
For instance, workers may be given a package of benefits that includes basic
and optional items. Basics might include modest medical coverage, life
insurance equal to a year’s salary, vacation time based on length of service,
and some retirement pay. But then employees can use credits to choose among
such additional benefits as full medical coverage, dental and eye care, more
vacation time, additional disability income, and higher company payments to the
retirement fund. Using the theory of consumer behavior, how do you think
flexible benefit packages would affect an employee’s preference between higher
wages and more benefits? Cigarette
Makers Penalties
U.S.
cigarette makers face enormous punitive damage penalties after losing a series
of class-action lawsuits that heaped penalties amounting to several hundred
billion dollars on the tobacco industry. In spite of the huge penalties, The
Wall Street Journal reported, “The damage (to cigarette makers) is
generally under control.” What action do you suppose the cigarette
companies took to avoid bankruptcy? Why did this action succeed? Fully explain
the answer to these questions using elasticity, demand, supply, and market
equilibrium. Respond to at least two of your fellow students postings.