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Company A allows its employees flexibility to work from home about 80% of the time. So, employees are required to come to the office 1 day a week (5 days week). Since 24-hour monitoring of employee activity is not possible, how Company A handle the problem of asymmetric information and action.
1. Discuss the nature of the moral hazard inherent in this work arrangement on the part employees.
2. Discuss work /human resource policies and productivity/performance metrics that can be employed and make hidden action less hidden.
Suppose that, initially, the Michigan economy is in equilibrium with no unemployment. The supply of workers is ES = -1,000,000 + 200w, and the demand for workers is ED = 19,000,000 – 300w, where w = annual wages, and E = number of employed workers. T..
find out the annual prices of oil for the past 5 years. By what percentage is the current price higher or lower than 5 years ago.
A company is planning a plant expansion that is expected to cost $10 million. How much must the company set aside now in a lumps-sum investment to have the money in 2 years? Capital funds earn interest at a rate of 12% per year, compounded continuous..
The research paper will analyze the market structure and competitiveness of an industry or business entity. The paper will encompass the following required components:
Describe why economists believe that "shocks" and "sticky" prices are responsible for short-run fluctuations in output and employment.
Solve for aggregate expenditures (AE) as a function of Y, and compute the equilibrium level of national income. Elucidate your equilibrium in a diagram with AE.
Production Function Consider a production technology that uses two categories of factor inputs in production. Define K as the amount of capital input, L as the amount of labor input, x as the amount of output. The production function is x = F (K, L) ..
A one-product company finds that its profit, P, in millions of dollars, is given by the following equation where a is the amount spent on advertising, in millions of dollars, and p is the price charged per item of the product, in dollars. P(a,p)=4ap+..
Remember the warm up activity in the first section of this unit? You were instructed to find an article that discusses the current state of the U.S. economy. Take this article (or one similar to it) and write a two- to three-paragraph summary of the ..
If income rises from 1000 to 1800 and consumption rises from 1100 to 1700 the marginal propensity to save.
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results.
Using the Lagrangean multiplier approach calculate the optimal (i.e., service maximizing) combination of medical and social staff. Determine the optimal amount of service provided by BF.
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