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Two successful firms are observed with quite different compensation plans for their sales- people. One firm pays its salespeople on a commission basis, whereas the other firm pays its salespeople fixed salaries. Do you think that one of the two companies is making a mistake? Explain.
1. What is the relationship between the mpc, the mpc and the mpw?
Explain the difference between the short run and the long run as it relates to the firm's production function. Why is this distinction important to a firm's manager?
Define demand-side and supply side policies. Sometimes it is said that Keynesian s advocate demand side policies and monetarists advocate supply side policies. Is there any accuracy in this statement?
1.If an industry regulator adopts an RPI X formula for price regulation, is it desirable that the value of X should be adjusted as soon as cost conditions change?
Propose how differences in demand and elasticity lead managers to develop various pricing strategies and analyze the economic impact of contracting, governance and organizational form within organizations.
Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large firm Tile King. Ajax produces a multi-headed tunnel wall scrubber that is similar to a model produced by Tile King. Ajax decides to charge the same price as..
Discuss the moral and economic implications involved in the movement.
Suppose you have an offer of $200,000 to sell your house this year. The market rate of interest is 10%. You expect to be able to sell your house next year for $230,000.We should use the nonrenewable resources since we will leave more capital goods fo..
Suppose you have been appointed as Global Manager of a company that has 2-plants, one in the US and one in Mexico. Suppose, you cannot change the size of plants or amount of capital equipment.
From the first e-Activity, speculate how the monopolist could be more efficient in the long-run considering new competition has entered the marketplace
1.Think of two examples of price discrimination. In what ways do the consumers gain or lose? What information would you need to be certain in your answer?
Is it possible for the government to target the money supply over the longer term without targeting the PSNCR?
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