Summarize the full set of arguments laid out by William Lewis in his essay “The Power of Productivity” and explain the economic reasoning behind why—using (a) Hayek’s idea of competition as a discovery process

BBA 301—Assignment #9 Due via Blackboard on April 23rd. 1. Peter Thiel argues (p. 35): “Creative monopoly means new products that benefit everybody and sustainable profits for the creator. Competition means no profits for anybody, no meaningful differentiation, and a struggle for survival. So why do people believe competition is healthy?” Craft a short essay that explains how the following three authors might critique that statement (especially the last sentence)—and how Thiel might respond to the critique (based on evidence from his arguments in Chapters 3, 4, and 5). [About 1 page each; 10 points each] a. Wolfgang Kasper b. Norm Broadsky c. William W. Lewis 2.

Summarizes the full set of arguments laid out by William Lewis in his essay “The Power of Productivity” and explain the economic reasoning behind why—using (a) Hayek’s idea of competition as a discovery process and (b) the idea of “rent-seeking”—Lewis argues that: “Economic progress depends on increasing productivity, which depends on undistorted competition.” [About 2-3 double-spaced pages; 30 points] 3. Summarize the idea of “environmental adoption” developed by Alchian in the article “Uncertainty, Evolution, and Economic Theory.” Use quotations to support your exposition. Make sure that (1) an uninitiated reader can understand what Alchian means and (2) your summary incorporates the following elements. [About 2 double-spaced pages; 20 points] •

Uncertainty • Luck • Adaption (imitation and trial and error) • Profits 4. Traditional textbooks build economic models of business on the assumption of “profit maximization” using specific pricing rules. Peter Drucker (“What is a Business?” p. 59) argues that this approach used by economists is a distracting—if not a dangerous or meaningless—concept. Yet he argues simultaneously that “profit maximization is meaningless” and “profits and profitability are crucial.” Armen Alchian develops the same theme. Using the economic role of profit as an organizing device, craft an argument that explains why it is legitimate to argue that Drucker and Alchian are discussing the same economic issue(s) but from different end points on the same spectrum. How do you contrast and compare Drucker’s meaning behind the statement “business enterprise is created and managed by people and not forces” with the meaning behind Alchian’s idea of “environmental adoption”? [About 2 double-spaced pages; 20 points]