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You are the manager of a firm which sells its output at a price of $40 per unit. You are interested in hiring a new worker who you expect will increase your firm’s output by 2,000 units per year. What is the most you should be willing to pay this worker per year to come to your firm? B. Suppose a firm currently pays all of its production workers a wage equivalent to the average revenue product of the firm (which equals the price of the firm’s output times the firm’s average product). Compared to the average, imagine worker 1 is very productive, while worker 2 is not very productive. Carefully explain why worker 1 would prefer to be paid a wage equivalent to their marginal revenue product, while worker 2 is content being paid a wage equivalent to average revenue product.
What is the equilibrium price of honey? How much profit does an individual producer make in a month?
Bayer Schering Pharma AG, Germany owns Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. Alka-Seltzer Plus was a spin-off of th..
prisoners dilemma is a game that has been and continues to be studied by people from a variety of disciplines from
The Lemon Test involves the Supreme Court's interpretation of which of the following constitutional provisions?
Examine how the Federal Reserve controls the money supply. In a paper, formulate how the independence of the Federal Reserve should or should not be modified in any way.
As an analyst at the Treasury Department, you have been asked to predict the behavior of key macroeconomic variables for different scenarios on the state of policy between the US and Europe. A temporary restrictive monetary policy in the United State..
One criticism is that the IMF's one-size-fits-all approach to macroeconomic policy is inappropriate for many countries. This point was stressed in the Turkey's 18th IMF Program. What do you think? Is it right? How is this affecting international busi..
Consumers borrow money for many different reasons, including the purchase of a home, car, and appliances, to remodel, or to help pay for college. Approximately 75% of U.S. households carry some debt. What is the median amount of household debt? Provi..
If we assume that the required reserve ratio is 10%, please provide a detailed write-up of what actions could (should) the bank manager take if there is an unexpected deposit outflow of $50 million?
EverKleen Pool Services provides weekly swimming pool maintenance in Atlanta. Dozens of firms provide this service. The service is standardized; each company cleans the pool and maintains the proper levels of chemicals in the water. At what output le..
1 briefly describe how you would get the product to buyers in that same country through an international joint venture.
Explain carefully why interest rates on each of the following short-term financial instruments will be closely tied to the level federal funds rate: short-term bank CDs, short-term Treasury bills, short-term commercial paper. Why is the yield on shor..
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