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Suppose that an economy is producing on its production possibilities curve but is not producing quantities of each good where the marginal benefit equals the marginal cost for each good. This economy:
a-should not change its production because it cannot improve its allocation by shifting resources.
b-can improve its allocation by lowering the unemployment rate.
c-can improve its allocation by producing more of one good and less of the other.
d-can improve its allocation by producing more of both goods.
Suppose you have hired a new worker, unfortunately you do not know if the worker is a shirker or a hard worker. Suppose working hard raises the probability of making a sale from 40% to 80% (thus raises the probability of making a commission C by the ..
The dividend is expected to grow 7 percent a year for the next 3 years and then at 5 percent a year thereafter. Illustrate what is the expected dividend per share for each of the next 5 years.
Congress is considering a tax credit program for those who purchase wind or solar-powered products. Explain multiplier concept as it applies in this case.
There are three players, labeled 1,2 and 3. At the start of the game, players 1 and 2 simultaneously choose between playing “A” and “B”. If they both choose “A” then the game ends and the payoffs are (1, 0, 0) If player 3 guesses correctly, then he a..
Suppose that the matching function is given by: M = em(Q, A) = eQ^(0.7)A^(0.3) Express pc and pf as functions of e and labor market tightness j. Suppose that z = 1, b = 0.4, e = 0.9 and k = 0.24. Suppose that w = 0.75 Find the unemployment rate in th..
Suppose major officeholders from one particular party are not performing well and party is not monitoring se officeholders. In illustrate what ways could this situation affect party as a whole.
Explain how the global supply chain functions of (a) logistics and (b) purchasing can be used strategically leverage the global supply chains for a manufacturing company producing mobile phones.
Illustrate what is expected interest rate that will be charged by a bank that cannot exactly distinguish between two types but knows probabilities of each type.
Sarah's preferences for consumption and leisure can be expressed as U ( C , L ) = ( C - 180 ) × ( L - 80 ) . This utility function implies that her marginal utility of leisure is C - 180 and her marginal utility of consumption is L - 80. What is her ..
Calculation of the unemployment rate and part time workers who would prefer to work full time.
Success of a company investing and operating in a foreign country depends on the competitive advantage of the company. The entry strategy could be technology based, quality based, or cost based. Explain and comment.
Regulating Monopoly. Explain how a regulator can reduce the deadweight loss associated with monopoly by setting a price cap in the market. Show what the ideal level of this price cap is, and the resulting inefficiency.
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