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Suppose that normal workers increase a rm's revenue by $6, while smart workers increase revenue by $A, where A > 6. Firms cannot tell smart workers from normal workers ex ante, but can observe a worker's educational level. Any worker can acquire as much education as she wishes, but getting e years costs a normal worker B(e), where B > 1, while e years cost a smart worker only e.
a. Solve for e, the minimum years of education that smart workers must get to dierentiate themselves from normal workers. Your answer will be a function of the variables A and B.
b. As A increases, does e increase or decrease? Explain intuitively why this is the case. c. As B increases, does e increase or decrease?
According to moderate growth your return will be 8 percent. If there is a rapid expansion, your portfolio will return 15 percent.
Illustrate what has occurred to change the demand for, or the supply of, the good or service, and market prices of those products or services.
Describe wage determination in a labor market in which workers are unorganized and many firms actively compete for the services of labor. Show this situation graphically, using W1 to indicate the equilibrium wage rate and Q1 to show the number of ..
Discuss the differences between behavioral and equilibrium relationships and explain the basic Idea behind the Solow model and its relationship with technological advance. What will add to capital stock and detract from it.
Suppose that in small open economy the following describes investment demand, private saving, and government budget deficit.
Illustrate what are the limits to long-term economic growth in the US.
Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end ..
most wild asian tigers are the common property of the humans and governments that control the land they inhabit. why does this pose a significiant problem for maintaining the wild tiger population in the future
Write an essay evaluating the role of governments in assuring that developing countries obtain a fair and adequate share of the benefits of international trade.
Provide brief but theoretically sound explanation for each of the following.
During the 1990s, Western Europe experienced high rates of unemployment, while in the US, rate of unemployment remained far below natural rate.
A firm uses a single plant with costs C = 160 + 16Q + .1Q 2 and faces the price equation-Find the firms profit maximizing price and quantity. What is its profit?
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