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Suppose you have been appointed as Global Manager of a company that has 2-plants, one in the US and one in Mexico. Suppose, you cannot change the size of the plants or the amount of capital equipment. The wage in Mexico is $5. The wage in the U.S. is $20. Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500.
Is the firm maximizing output relative to its labor cost? Yes or No. Show how you know. If it is not, what should the firm do?
Discuss and explain the individual contributions that could be made through a cross-functional team to the following list of activities.
An economist had estimated sales trend line for the Sun Belt Toy Corporation as follows:
"A characteristic of oligopolistic market is that, once the general price level is established it tends to remain fixed for an extended period of time." Discuss the economic rationale underlying this phenomenon.
Estimate the coefficients of the demand model for the data given above. Provide an economic interpretation for each of the coefficients in the estimated demand equation you have compuated.
In 1989, Detroit Free Press and Detroit Daily News obtained authorization to combine under a special exemption from the antitrust laws.
Price comparison services on the Internet are a popular way for retailers to promote their products and a convenient way for customers to simultaneously obtain price quotes from many firms setting I identical product.
Use the following information for a company's output at various levels of employment to compute: its marginal physical product of labor schedule; its schedule,
American Linen is a company that has multiple salespersons. In 2008, it changed the compensation method for its sales force, moving from a system of fixed wages to one of base wage plus charge.
Assume the market price of sugar is twenty-two cents per pound. If a sugar farmer produces 100,000 pounds, the marginal cost of sugar is 30 cents per pound.
For each policy or event given below, please indicate if it will increase (+), decrease (-), or it is uncertain (+/-) how it will affect the economic variable on right-hand side.
Assume that Saudi Arabia lets other members of OPEC sell all the oil they wish at the existing price which udis set and other members accept.
Prepare the sketch the Fourier transform of a rectangular pulse of amplitude 10 V and width 0.1 second that is centered on the zero time axis. Determine the autocorrelation function of a rectangular pulse.
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