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Suppose you have a negotiation situation between Management and Labor concerning Labor wages. Management and Labor do well when they each do the opposite of what the other does i.e. the best situations for both are: (i) for management to bargain hard (offer low wages) and Labor to accomodate (accepts the contract offered) and (ii) for Management to accomodate (offer generous wages) and Labor to bargain hard (threatens to strike).
Some goods that are bought and sold markets generate benefits that are realized outside of the market. A policy that will make these markets more efficient is...
Consideration is being given to the investment of $420,000 at time zero for machinery and equipment to be depreciated using 7 year straight line depreciation starting in year 1 with the half-year convention. Annual sales are projected to be $450,000 ..
Under a strict command-and-control framework, suppose abatement standards are set equally across polluters. Assume the total abatement target is 30 units. Show the cost implications using three graphs, each of a different polluter with a unique MAC c..
A man borrows money from bank. He receives the money in 5 annual installments, taking X each time. He repays the loan with 20 annual payments, the first one equal to 100 and the payments increasing by 100 each year. If the first payment is due one ye..
The sales manager of a retail outlet suggests that the best way to increase the number of customers is to have a sale. If a 10 percent price cut doesn’t bring in enough customers, then he’ll cut prices 20 percent. Increased cash flow should take care..
In the short - run macro model, which of the following is the cause of cyclical unemployment?
Illustrate scarcity, choice also prospect cost with the aid of a diagram demonstrating a production possibilities frontier
Do the relative salaries of humanities professors and football coaches at major state universities reflect the relative value of football and humanities? Do they reflect the number of years that professors and coaches must spend acquiring an educatio..
For each of the following changes in the macro-economy, show how to think about them using the IS curve, and explain how GDP is affected in the short-run. The government offers a temporary tax credit: for each dollar of investment that firms undertak..
The New Zealand dollar pushed toward U.S.55c yesterday as the greenback was dumped on a surprise U.S Federal Reserve initiative to pump more money into a still-choked financial system. Prior to this move was the NZ dollar trading at U.S.56c or U.S.54..
In class we have dealt with the profit function defined as:
What term best describes the payment which must be offered to a risk-averse individual to willingly accept a gamble?
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