Reference no: EM136949
Q. Let's say that you own a restaurant with 3 employees and you are trying to decide between two different production processes and two different pay schemes.
(a) Your rest idea is to have all 3 employees cook, clean, and wait tables. This implies that your production function is Q = q1 + q2 + q3, which means that your employees are substitutes.
i. Assume that you can monitor your employees output perfectly if you choose to, so that you can know each individual qi. If your employees are self-interested, how much output would you expect each individual worker to produce without monitoring?
ii. If you wanted to increase Q, what kind of pay scheme might you try? Explain.
iii. From the point of view of the workers, what kind of game is this?
(b) Your other idea is to have your workers specialize, so that one person cooks, the other cleans, and the third waits tables. This implies that your production function is Q = min (q1; q2; q3), or that your workers are complements.
i. When workers are complements, it is harder to monitor the individual output of each worker, so now you can perfectly measure Q, but can only imperfectly measure individual qi. If your employees are self-interested, how much output would you expect each individual worker to produce absent monitoring?
ii. If you wanted to increase Q, what kind of pay scheme might you try? Explain.
iii. From the point of view of the workers, what kind of game is this?
|
Pharmaceutical industry is an oligopoly
: Required all pharmaceutical firms to sell their drugs in a competitive market with no ability to patent their break.
|
|
Copyright on zatab
: What price and quantity will result once the copyright expires and competition emerges in this market. Elucidate your answer.
|
|
What is nonassociative learning
: What is nonassociative learning and what are the differences between associative and nonassociative learning. In the small stream, you choose a rock and observe many small, flattened worms crawling on it are under surface. You decide that they belong..
|
|
Pay matrix and the nash equilibrium
: Assume that this is a pass/fail assignment, where the passing grade is low enough that one person can produce a passing paper.
|
|
Employees are self-interested
: If your employees are self-interested, how much output would you expect each individual worker to produce absent monitoring.
|
|
What type of cellular injury occurred in this patient
: Describe why organisms only reproduce their own kind, and why offspring more closely resemble their parents than unrelated individuals of the similar species.
|
|
Immigration between two countries
: The government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially before multiplier effects.
|
|
Un millennium development goals
: Can the researcher say with a 0.05 level of significance that the proportion of children not completing primary school is more than 1%.
|
|
How to decrease nosocomial infection rate to zero
: The new form of life is discovered. It has a genetic code much like that of organisms on Earth except that there are five different DNA bases instead of four and the base sequences is translated as doublets instead of triplets. How various different ..
|