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A landlord owns a number of rental properties and wants to hire a property manager to do general maintenance. The landlord decided on a predetermined amount that he is willing to pay for property management services. The amount the landlord is willing to pay is below current market value. After interviewing multiple candidates, the job is accepted by a contractor.
1. Is there asymmetrical information inherent in this contract?
2. Is there adverse selection consequences inherent in the contract?
3. How can the two parties reduce the asymmetrical information problem inherent in this contract?
Identify the nature of resource cost structure and the practical significance of different costs and explain the factors influencing optimum size and the significance of demand and supply relationships;
Assume that the Bank of Ecoville has the following balance sheet and the Fed has a 10% reserve requirement in place: Now assume that the Fed lowers the reserve requirement to 8%. What is the maximum amount of new loans that this bank can make? Assume..
Explain (with the help of an example) the concept of derived demand for factors of production. The answer must be explain the concepts as if your explaining it to a person who have no knownlege with the subject.
A trendy French restaurant is one of the first businesses to open in a small corner of a commercial building still under construction. The restaurant has received rave reviews and has lines of diners waiting for tables most nights. In the short run (..
A furniture maker has an order for 98 identical tables. If the furniture maker estimates his learning curve at 82% and can reach steady production of 7 hours per table on the 6th table, how long should it take to make all the tables? Express your ans..
What are the primary legal considerations that every human service worker must be aware of? How do these legalities help to protect us and our clients?
Summarize the most impactful external opportunities and threats that have recently affected MCM
A 911 emergency response service needs operators who are bilingual in English and Spanish. A few applicants of Spanish origin are rejected due to poor English-speaking skills. They file a complaint on the grounds of discrimination based on nationalit..
Suppose the value of a stock varies each day from $12 to $27 with a uniform distribution. Find µ.
There is a 1 percent chance that you will have healthcare bills of $100,000, a 19 percent chance that you will have healthcare bills of 10,000, a 60 percent chance that you will have healthcare bills of $500, and a 20 percent chance that you will hav..
Suppose the color and shape of our currency was changed. How would these changes affect the role money played?
Identify/discuss the fixed costs, variable costs, and the implicit costs in that business. Please explain in detail.
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