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Consider executive compensation.
a) In all of our previous discussions about compensation levels, we never discussed the possibility that employees were paid too much. What is different about paying CEO’s that makes overpayment a possibility?
b) Consider the two models of CEO pay: skimming and optimal contracts. Cite 2 pieces of evidence to support the skimming model and 2 pieces of evidence that supports the optimal contracts model.
Mei issues purchase order to June for goods which costs $ 25,000. June agrees to provide the same but she doesn't sign the purchase order. Mei can file a suit for the breach of contract. A description that gives rise to an express warranty under whic..
Suppose that you observe that the total utility rises as more of an item is consumed. What can you say for certain about marginal utility? Can you say for sure that it is rising or falling or that it is positive or negative?
The markets will over produce goods that have external costs because
The demand functions faced by a firm in two different markets are: Q1 = 600 – 10 p1 and Q2 = 800 – 10 p2. The firm has constant marginal costs of production equal to $20. Find the optimal prices and output if the firm price discriminate in the third ..
q1. discuss the problems of measuring productivity in actual work situations. how might productivity be measured for
If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car dealers in your area?. In that same situation, what would the four-firm concentration ratio be?..
A decrease in consumer spending can be expected to shift the
Why is the growth of consumer spending considered a positive factor for expansion of GDP even when personal saving is falling to a negative level? Are the long term and short term effects of a negative personal saving rate both favorable to economic ..
Last fiscal year 01-Jan to 31-Dec, Norco, Inc., had a gross revenue of $20,000,000, cost of goods sold and interest expenses of $5,000,000, and total depreciation charges of $5,000,000. Also on October 1 of last year, Norco completed purchase of and ..
The majority of schools of medicine, dentistry, nursing, and other professions and their teaching hospitals are heavily subsidized by federal and state funds. Do health care providers who reap the benefits of high compensation and social position hav..
Describe "how" producer surplus is measured? What happens to producer surplus when the price of a good rises - all other things equal.
Value added is the
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