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Theories of CEO Pay
CEO pay appears to be on the rise again. Additionally, executive pay in the U.S. is about 20 times higher than it is in European countries. Explain three theories about CEO pay and evaluate, whether they can explain why 1) executive pay is so much higher than the pay of an average worker, 2) it does not vary much with the value of the firm, and 3) it is so much higher in the U.S. compared to Europe.
Compute the AE function and plot it in diagram. What is total autonomous expenditure? What is slope of the AE function?
Prepare a demand schedule for both demand curves and prepare them on an Excel graph. Calculate the marginal revenue for each.
Explain the concept of externality. What does it have to do with the efficient allocation of resources?
Describe the US household is harmful to the economy with the use of AS-AD diagrams.
Discuss why the same types of problems may exist in government as well, where elected officials are the agents and voters are the principals.
Bright Future, Ltd (BF) is a non-profit foundation providing medical treatment to emotionally distressed children. Determine the optimal amount of service provided by BF.
Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?
Antitrust authorities at the Federal Trade Commission are reviewing you company' recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power.
For a perfectly competitive firm the price is $2 per unit. At this price the firm is producing and selling 10,000 units. It costs $1.50 to produce the last unit. Should the firm produce more? Less? Why?
Joan is deciding where to spend her spring break. If she goes to Cancun, Mexico, the trip will give her 9,000 utils of satisfaction and will cost her $300. If, instead, she travels to Florida, the trip will give her 5,000 utils of pleasure and w..
Read the following text and answer the questions below: Discuss the limitations of this model as an explanation of the effects of government expenditure on GDP.
How income may change savings behavior
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