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A landlord owns a number of rental properties and wants to hire a property manager to do general maintenance. The landlord decided on a predetermined amount that he is willing to pay for property management services. The amount the landlord is willing to pay is below current market value. After interviewing multiple candidates, the job is accepted by a contractor.
1. Is there asymmetrical information inherent in this contract?
2. Is there adverse selection consequences inherent in the contract?
3. How can the two parties reduce the asymmetrical information problem inherent in this contract?
The cost to United Airlines of flying a single plane from Chicago to New York is given by:
Who are the stakeholders in this case, and what are their stakes? The ban received approval from the New York City Board of Health, but a state Supreme Court judge subsequently halted it. Mayor Bloomberg vowed to appeal. Irrespective of the legal wra..
xplains with aid of a diagram, effect that such legislation will have/has had on equilibrium price and quantity of labour employed. Also illustrate what can be done to alleviate/remedy any problem that may rise from above laws.
The state of NJ recently passed an increase in the minimum wage, how will this impact wages and the quantity of labor? Make sure to include the appropriate graph (starting with the initial equilibrium price and quantity) as well as who the potential ..
Explain what happens in the marketplace when the federal government, in response to lobbying by (small) farmers, places a floor price under a bushel of corn that is greater than the market equilibrium price;
A tsunami in Japan disrupts the production of Japanese-made cars. What is the impact on the market for new cars.
Suppose that the government wants to stimulate GDP using fiscal policy, for example by raising G from 2,500 to 3,000. How does this affect your IS and LM curves? Suppose that instead of using fiscal policy, G remains constant at 2,500, but the money ..
the firm will earn $15,000 if it introduces the new product, and revamping the production facilities will earn new profits of $60,000. What should the manager do.
In 1981 Andrew Carnegie asserted that "parents who leave their children enormous wealth generally deaden their children's talents and energies and tempt them to lead less productive lives." Evaluate this statement using the labor-leisure model and ex..
What is the role of an effective transfer pricing methodology in allowing effective performance measurement?
Suppose the price of a can of Diet Pepsi is $1. Find out Sally's optimal consumption of Diet Coke as a function of the unit price of Diet Coke (PC).
Suppose the exchange rate between the United States and China changed from 1USD=6.6CNY to 1USD=6CNY. In addition, there is sudden inflation in the United States but, but not in China. What do you expect to happen to US exports and Chinese imports bas..
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