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Most firms want their workers to feel good about their jobs. Feeling good promotes good work, which leads to higher productivity. Paying a high wage is one instrument the firm can use to achieve these goals. Economists call the theories that link the productivity or the efficiency of workers to the wage they are paid efficiency wage theories. One example of efficiency wage was implemented by Ford in 1914, where he increased all qualified employees pay from an average of $2.30 for a nine-hour day to $5.00 a day for an eight-hour day and this resulted in a dramatic drop in layoff rate and turnover rate of workers. Please give any two contemporary examples of efficiency wage practices and their possible effect.
The Pilot Pen Company has decided to use 15 test markets to examine the sensitivity of demand for its new product to various prices, as shown in the following table. Advertising effort was identical in each market. What is the price elasticity of dem..
When it comes to the issue of public key management, there are many options. Is it best to develop a PKI in-house
Oligopoly is the predominant market structure in the airline industry. In the express package business, FedEx, UPS, and DHL compete in the global air express industry. In the US, FedEx and UPS are a duopoly.
Many argue that hospitals are already too competitive in that competition in a not-for-profit environment turns into a "medical arms race."
determinants of supply and demand, graph the supply and demand curves and illustrate the resulting change in the equilibrium price and quantity.
You gather data on US workers aged 22 to 55 from the Current Population Survey. You define the Average Hourly Wage as self-reported total annual labor income divided by self-reported total annual work hours. Describe in words how to interpret the coe..
The "interest-only" mortgage typically converts later to a:
After viewing the video clip from Cool Hand Luke, first consider how marginal benefits and marginal costs fit in to Luke’s decision, and how the concept of diminishing marginal utility is at work as Luke eats more and more eggs. What is driving his m..
According to McGuire, what elements does strong organizational culture display? you will need to access Gert Hofstede's website to answer this question. If you are an organization interested in establishing a strong market presence in China, Brazil, ..
Suppose industry abatement costs rise from $850 million in 2004 to $1,000 million in 2005 in nominal terms and that the CPI is 100 in 2004 and 106 in 2005. Evaluate the change in costs over the period in real terms, first in 2004 dollars and then in ..
It is frequently observed that when a city is located next to a major highway, gas stations located close to the highway charge higher prices than gas stations located farther away.
The recent dividend payout by IBM was $3.00. IBM's dividends are expected to grow about 6.5% per year. If your required rate of return is 17%. What is the expected stock price two years from now. Round the answer to the nearest integer
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