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BK Books is an online book retailer that also has 10,000 "bricks and mortar “outlets worldwide. You are a risk-neutral manager within the Corporate Finance Division and are in dire need of a new financial analyst. You only interview students from the top MBA programs in your area. Thanks to your screening mechanisms and contacts, the students you interview ultimately differ only with respect to the wage that they are willing to accept. About 10 percent of acceptable candidates are willing to accept a salary of $70,000, while 90 percent demand a salary of $100, 000. There are two phases to the interview process that every interviewee must go through. Phase I is the initial one hour on campus interview. All candidates interviewed in Phase I are also invited to Phase II of the interview, which consists of a five hour office visits. In all, you spend six hours interviewing each candidate and value this time at $900. In addition, it costs a total of $4,900 in travel expenses to interview each candidate. You are very impresses with the first interviewee completing both phases of BK Book’s interviewing process, and she has indicated that her reservation salary is $100,000. Should you make her an offer at that salary or continue the interviewing process? Explain in detail.
How can it be said that the factor-content approach “reveals” a country’s factor abundance? What assumptions seem crucial for making this inference? Explain.
Now suppose the economists allow for crowding out. Illustrate what would their new estimate of the MPC be larger or smaller than their initial one.
Provide one quote and its context for both a positive and normative statement. Explain your choices. Estimate the statement choices of your fellow students.
“If health care in the United States is going to be better, fairer, and more cost effective, it will require leaders to step up to the challenge of change” Explain how the Triple Aim contributes toward realizing the vision of better health in the Uni..
What does gross domestic product (GDP) tell us? How did GDP change from 2008? What caused these changes? What is real GDP? What was real GDP in 2008 and has it changed since 2008? What was national income (NI) for 2008? What does national income tell..
What impact do Federal laws and regulations have on international business? Name at least 3 different types of laws that affect international businesses (Cite country/product examples where appropriate)
Derive an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies. Elucidate what production level are scale economies exhausted.
q. 1. suggest how an economist would approach the problem of alcohol abuse. provide two possible solutions to this
During a year of operation, a firm collects $175,000 in revenue and spends $80,000 on raw materials, labor expense, utilities, and rent. The owners of the firm have provided $500,000 of their own money to the firm instead of investing the money and e..
Increasingly, employees are being allowed to choose benefit packages from a menu of items. For instance, workers may be given a package of benefits that includes basic and optional items. How do you think flexible benefit packages would affect an emp..
Income inequality and poverty affect us in many ways we may not think about. Gregory W. is a homeless man in Louisiana who was arrested for stealing food from a grocery store. What would be a fair way to hold this man accountable for his theft? When..
submit data findings that include economic factors within that area that may influence your decision, or factors that have prohibited an area to be chosen.
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