Mary works at a large logistics company based in Caulfield, which services areas all over Australia. Her position is division manager. Mary is responsible for all the drivers, designating the trucks to the drivers, and ensuring all the trucks are serviced and maintained. Tom, one of the drivers, is just about to leave for Brisbane in his favourite truck, which he affectionately calls Elvis. Mary tells Tom he cannot take Elvis, as Elvis is due for an important service and Tom is very unhappy. Mary can tell Tom which truck to take, because she has which kind of power in this situation? Question 1Select one:Information powerLegitimate powerExpert powerReward power

After Tom's trip to Brisbane, Mary asks him to come in on his day off and take a load of books to the Monash University library. Tom realises that Mary is a very helpful manager to him, even though he wasn't able to take Elvis on his last run. Mary usually let's him take Elvis, gives him priority choices over which jobs he takes, and lets him have Friday afternoons off to play golf with his brothers. In this way, Mary is a good manager to Tom, and because of this, Tom is happy to come in on his day off, and take the books to the university. Tom's decision to come in on his day off was most likely affected by the following interpersonal influence strategy:Question 2Select one:ScarcityConsistencyReciprocityCoercive power

Mary is based in Queensland and manufactures tractors and farm equipment. She has sold products over many years to many farmers in Australia, New Zealand and Southeast Asia. Mary intends to market a new tractor with special novel features. She emails all former customers describing the tractor and offering it for sale for $130,000. The email legally amounts to a contractual offer. The latest "Farmers Journal" contains an advertisement for a similar tractor from a competitor for only $110,000.Beatrice resides in Bundaberg (Queensland) and is a long-standing customer of Mary. On Friday 1 September at 8.00 pm Beatrice sent an email to Mary accepting the offer for one tractor. Beatrice's leading farm hand, James, believes that the farm could use two tractors, so he used Beatrice's computer and Beatrice's email account to accept the offer for the purchase of a second tractor. He "signed" the email "Beatrice". Over, over the weekend, Beatrice read the advertisement in the Farmers Journal. On Sunday 3 September, Beatrice personally telephoned Mary. Beatrice established that Mary had not read her email, as she would not be expected to check her business emails until Monday morning. Beatrice then states that she withdraws her acceptance and that her email should be ignored.Is there any binding contract(s)? If so, with whom? Explain the application and rationale for the applicable law.

Mary is based in Queensland and manufactures tractors and farm equipment. She has sold products over many years to many farmers in Australia, New Zealand and Southeast Asia. Mary intends to market a new tractor with special novel features. She emails all former customers describing the tractor and offering it for sale for $130,000. The email legally amounts to a contractual offer. The latest "Farmers Journal" contains an advertisement for a similar tractor from a competitor for only $110,000.Beatrice resides in Bundaberg (Queensland) and is a long-standing customer of Mary. On Friday 1 September at 8.00 pm Beatrice sent an email to Mary accepting the offer for one tractor. Beatrice's leading farm hand, James, believes that the farm could use two tractors, so he used Beatrice's computer and Beatrice's email account to accept the offer for the purchase of a second tractor. He "signed" the email "Beatrice". Over, over the weekend, Beatrice read the advertisement in the Farmers Journal. On Sunday 3 September, Beatrice personally telephoned Mary. Beatrice established that Mary had not read her email, as she would not be expected to check her business emails until Monday morning. Beatrice then states that she withdraws her acceptance and that her email should be ignored.

2. (50 points) June is relocating from Canberra to Sydney and hasengaged a removalist company to bring her household goods by truck fromher house in Canberra to her new residence in Sydney. Suppose she faces thefollowing uncertainty, either the truck makes the journery from Canberrato Sydney without incident and unloads her household goods in Sydneywith nothing lost and nothing damaged, or, the truck crashes and all herhousehold goods are damaged beyond repair. Let M denote her overall(money) wealth in the event that nothing is lost and M L denote herwealth in the event the truck carrying her household goods crashes. AssumeM > L > 0.(a) (5 points) Let (x1; x2)  (0; 0) denote Juneís state-contingent wealth,where x1  0 is her wealth in the state in which the truck does notcrash and x2  0 is her wealth in the state in which the truck doescrash. Draw a graph with the horizontal axis measuring the quantityx1 and the vertical axis measuring the quantity x2 and plot Juneísstate-contingent wealth if she does not take out any insurance.Suppose Juneís preferences over state-contingent wealth bundles (x1; x2)conform to the theory of Subjective Expected Utility.(b) (5 points) Explain what type of utility function this means we canuse to represent her preferences.(c) (15 points) Explain what it means for June to be deemed strictly riskaverse and what this implies for the utility function from your answerto part (b). Illustrate in your diagram from part (a) what this meansfor her indi§erence curves.

June is relocating from Canberra to Sydney and hasengaged a removalist company to bring her household goods by truck fromher house in Canberra to her new residence in Sydney. Suppose she faces thefollowing uncertainty, either the truck makes the journery from Canberrato Sydney without incident and unloads her household goods in Sydneywith nothing lost and nothing damaged, or, the truck crashes and all herhousehold goods are damaged beyond repair. Let M denote her overall(money) wealth in the event that nothing is lost and M L denote herwealth in the event the truck carrying her household goods crashes. AssumeM > L > 0.(a) (5 points) Let (x1; x2)  (0; 0) denote Juneís state-contingent wealth,where x1  0 is her wealth in the state in which the truck does notcrash and x2  0 is her wealth in the state in which the truck doescrash. Draw a graph with the horizontal axis measuring the quantityx1 and the vertical axis measuring the quantity x2 and plot Juneísstate-contingent wealth if she does not take out any insurance