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Peter Higgins is a sales agent for XZY Company. He has an effort cost function of C = e2 and a reservation wage of $1,500. His wage package is W = 1,500 + 0.2Q where the CEO sets the incentive at 0.2 and Q = 200e. Q is the output. If the CEO increases the incentive from 0.2 to 0.25, what happens to the Peter's effort? Will profits rise or fall?
Compute the cash flow for the 20 years for the cogeneration system as an increment relative to the avoided cost of utility electricity and natural gas
The demand for milk is given by Q=120,000-20,000P. a. What is the equilibrium quantity of milk if the market price is $3.00? b. What is the equilibrium quantity of milk if the market price drops to $2.90?
Southern Oil Company produces two grades of gasoline: regular and premium. The profit contributions are $0.30 per gallon for regular gasoline and .50 per gallon for premium gasoline.
How is net national product (NNP) calculated a.Saving is subtracted from the total income of a nation's citizens. b.Saving is subtracted from the total income of a nation's permanent residents. c. Depreciation losses are subtracted from the total ..
a manufacturer is considering purchasing equipment, which will have the following financial effects: Year Disbursements Receipts If money is worth 6%, should he invest in the equipment?
Two points on a standard indifference curve are 8 cookies and 2 brownies, and 6 cookies and 4 brownies. Which of the following combinations of cookies and brownies could lie on this indifference curve
Identify three decisions that you have made in the past (e.g., purchase decision, political decision, etc.) and their associated trade-offs. Provide support for your response.2. Create a positive question and its associated normative question.
There are many more sole proprietorhips than corporations or partnerships. Why are there so many sole proprietorships Why is the revenue of the average sole proprietorship less than that of the typical corporation
Discuss how Internet security measures can actually create opportunities for criminals to steal, rather than prevent them.
Economists argue that appropriate corrective taxes or tradable pollution rights will result in efficient pollution reduction. how do these approaches target the firms that should undertake bigger reductions
Elderly population is growing more rapidly than the total population - the number of workers is rising slowly, retirees are rising quickly. If total expenditure were frozen, what would happen to benefits per retiree
Describe why a change in a firm's total fixed cost of production will shift its average total cost curve, but not its marginal cost curve.
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