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Under a monopsony scenario explain why the marginal labor cost is above the supply curve (average labor cost). What is the nature of inefficiency or misallocation associated with monopsony power?
Consider the following short-run production function: q = 5L2 - 1/3L3. Illustrate at what level of L do diminishing marginal returns begin. At what level of L do diminishing returns begin.
You own a retail establishment run by a store manager who receives a flat salary of $80,000. If you set up another store as a franchise with incentive compensation to the franchisee, what would be a reasonable total compensation range that the franch..
Holdt Inc. produces and sells a single product. The selling price of the product is $110.00 per unit and its variable cost is $70 per unit. The fixed expense is $160,000 per month. The break-even sales (units) are:
A manufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. In the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant f..
This HW assignment is very relevant to the Great Recession experienced in the US from December 1997 - June 1999. In particular, we experience a significant and negative wealth shock and map out how this effects the consumption decisions of households..
Illustrate what is Fast Food's elasticity of demand. What does elastic, inelastic, or neither tell us about the elasticity of demand.
Use commercial bank and Federal Reserve Bank balance sheets to demonstrate the effect of each of the following transactions on commercial bank reserves: Federal Reserve Banks purchase securities from banks. Commercial banks borrow from Federal Reserv..
Graphically show the impacts of a carbon tax on electricity producers. Using another graph, illustrate how a tax compares to a uniform air quality standard that imposes fees on electricity producers in non-compliance. Briefly discuss which policy is ..
A man is planning to retire in 20 years. Money can be deposited at 6% interest compounded monthly, and it is also estimated that the future general inflation rate will be 4% compounded annually. What amount of end-of month deposit must be made each m..
Calculate the ICER for the new treatment, assuming that the new treatment would replace the old one. In what quadrant is the ICER located in Figure 3-4? Is cost effectiveness analysis relevant? How does the answer change if the cost of the new treatm..
If a state passes a law requiring long haul truckers to use a type of tire not required in other states, a court will apply what test in reviewing whether that requirement will impose, on interstate commerce, an undue burden? the impairment test the ..
Illustrate what was the impact on the supply and demand of labor on one sector of the labor market. Explain the factors that affected labor demand and labor supply in the chosen historical example.
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