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Q. Your lecturer used to work at a nationwide chain of retail swimming pool stores, which pays it's sales force a bonus based on sales (ie a commission). It also pays it's warehouse manager a bonus inversely related to the rm's inventory.
a. Will the sales force and warehouse manager maximize ports? If not, give an example of a decision the sales force and/or warehouse manager might make that does not maximize ports.
b. Can you forecast the problem that arose from this system?
Then do similar for every of the determinants of supply in Equation 2.2. In every instance, would equilibrium market price increase or decrease.
Assuming sum-of-years digits depreciation, what book value will Model-I have after two years.
If the average income in the town increases to 15, solve for the new equilibrium Quantity and equilibrium Pb.
What s the general pattern of the US income distribution over the last century. Explain about the timing of the changes.
The moral hazard is the degree of risk that the insurance company is taking in order to provide coverage on the individual.
Examine the following list of goods and services. Which goods and services should be included in Fredonia GDP in 2009, which should be excluded, and why.
In 2003, when music downloading first took off, Universal Music slashed the prices of CDs from an average of $21 to an average of $15.
The firm's average variable costs and average fixed costs per month are R200-00 and R500-00, respectively.
Carefully explain the concept of the reaction function in duopoly analysis.
Assume that household consumption decision suddenly become less sensitive to change in the rate of interest.
Would you expect firms in a tight oligopoly market reap higher profits than firms in a loose oligopoly market.
Discuss the manner in which an analyst would compare the relative profitability of the two potato chip segments.
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