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Teletronics reported record profits of $100,000 last year and is on track to exceed those profits this year. Teletronics competes in a very competitive market where many of the firms are merging in an attempt to gain competitive advantages. Currently, the company’s top manager is compensated with a fixed salary that does not include any performance bonuses.
Explain why this manager might nonetheless have a strong incentive to maximize the firm’s profits.
WHAT IMPACT DID THE POLICY ACTIONS HAVE ON THE FED FUNDS RATE? WHAT WERE THE FED'S CONCERNS FOR ECONOMIC GROWTH, HIGH UNEMPLOYMENT, PRICE STABILITY , INTERNATIONAL BALANCE.
Use an indifference curve-budget line analysis to depict the situations, prior to the ban on smoking, of a student who smoked on campus, and of a student who did not smoke.
The RAND (short for "research and development") Corporation is a think tank located on 15 prime acres of seaside property in the center of Santa Monica, California. RAND purchased the land for its offices from the city in 1952 for $250,000.
What are the costs of making those "systematic mistakes"? Is it possible to act "irrationally," or is rationality defined by the individual's approach to decision making?
Why did president Obama want to repeal the Bush era tax cuts on upper income tax payers How would the repeal of these tax cuts impact aggregate demand and to what degree How did the economic conditions in 2010 make such a repeal less likely to tak..
suppose that Abel builds a factory next to Baker´s farm, and air pollution from the factory harms Baker´s crops. Is Baker´s property right to the land being violated Is an externality present What if the pollution invades Baker´s home and harms he..
Some economists argue that it is possible to raise the standard of living by reducing population growth. As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth
Explain the causes of recent recession and when it started and when it technically ended. Finally why the recent recession was called the worst recession after the great depression.
The manager of EverClean finds two output levels that appear to be optimal. Show what these levels of output are, and explain which one is actually optimal.
To mitigate agency problems between senior executives and shareholders, should the compensation committee of the board devote more to executive salary and bonus(cash compensation) or more to long term incentives.
Assume the damages resulting from a particular type of pollution are uncertain. Policy makers are able to asses the average level of damages, and can choose a policy instrument that will internalize the average level of externality leading to what..
Imagine that you are trying to value a particular piece of wilderness that people use for recreational hiking and cycling. While this area has no entrance fee, statistics have been kept on who visits and how frequently they visit the area.
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