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Suppose that the government is coming up with an employment protection policy that requires firms to pay each laid-off worker two more months of salary after they are laid off. This essentially changes the variable adjustment cost the firm faces when wanting to alter their labor demand. Explain now this policy can change the firm's hiring and firing decision in economic downturns and upturns.
Consider the following sequential game between firm 1 and firm 2. First, firm 1 decides to adopt either technology A or technology B. Firm 2 observes firm 1's decision and then also decides between technology A or technology B. If both adopt technolo..
Chinese private-sector wages rose 14 percent in 2012. This trend in rapidly rising wage rates might hurt its manufacturing dominance. Explain the effect of the rising wage rates on the supply of manufactured goods.
The city of Joslyn has three sources of revenue, borrowing, proprietary income from running the local power utility, and taxes. If it recieved $10 million from running the electric power utility and borrowed $40 million, how much did it collect in ta..
In uncertain times, especially when the economy is experiencing a downturn, consumer spending tends to decline also savings rates tend to rise
The point of minimum average cost is referred to as the capacity of the firm. Yet we draw the average cost curve extending both to the left and to the right of this point. The firm can operate below capacity, but how can a firm operate above capacity..
Another student advocates the forced break-up of large firms, such as Microsoft and AT&T, on the grounds that they have a lot of monopoly power, which they use to charge inefficiently high prices. According to Schumpeter, would breaking apart these g..
The owner-manager does not draw a salary but could receive income of $40 per day by working elsewhere. Total daily revenue is $400.
The US and many other countries are experiencing high government deficits and debts. What, if any, impact does this have on their respective economies? Is government debt bad? Good? It depends? And if so, why and how?
Analyze how the different forces will come together to create a convergence between the interests of stockholders and managers.
Describe in detail the relationship that exists between the economy and the environment. explain the various interactions between the two and discuss any binding constraints the environment place on the economy.
The starting salary for a new assistant professor was $35,000 in 2000 and $65,000 in 2015. The value of CPI for 2015 was 164.3 compared to 55.6 in 2000. In which year did a newly hired professor earn more in real the real terms? Show your calculation..
Suppose the price elasticity of demand for gasoline at the pump is 0.67. About how big a price increase will be required to decrease consumption of gasoline by 4 percent?
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