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Q. The owners of a small manufacturing concern have hired a manager to run the company with the expectation that he will buy the company after five years. Compensation of the new vice president (manager) is a flat salary plus 75% of the first $150,000 of profit, and then 10% of profit over $150,000. Purchase price for the company is set as 4.5 times earnings (profit), computed as average annual profitability over the next 5 years. Elucidate that contract align the incentives of the new vice president with the goals of the owners?
Elucidate how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves.
Write the numerical formula for the LM curve? What is the equilibrium level of r?
Illustrate what inconsistent other than price appear ro have the biggest impact on the demand for McDonald's products.
What is Anna’s optimal choice of comic books and AOG? Illustrate her optimal choice on a graph, using indifference curve-budget line analysis.
Louie produced 300 fire trucks. What action leads to both gains in revenue and loses in revenue for Louie.
The interest earned is deposited back into the sacinvgs account each month. How much is this account worth 28 years? Answer to the nearest dollar.
Congress does not have enough votes to override a veto. Draw a tree for this game and ?nd the rollback equilibrium.
Explain how would you expect each of the following events to affect the amount they save each month.
assume that government establishes a cost floor below market equilibrium for rents on how utilizing. Illustrate what will be main effects of this cost floor. Demonstrate your answer graphically.
Department of Health and Human Services, but rather with the Internal Revenue Service. What evidence can you cite to support your position?
Illustrates what happens if business taxes are reduced also the real interest rate increases
q. 1. what contact does natural capital have on economic growth? will it be probable for a country through few natural
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