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Consider two commission schemes for selling a $2 million home: 6% of the sale price; and 5% per dollar of the sale price up to $1,800,000 and 15% per dollar after $1,800,000. Compare a real estate agent's incentives created by the two contracts. Under which conditions would an agent prefer the second contract? Under what conditions would a seller prefer the second contract?
He is going to travel the world this summer and won't be working. How much must be set aside in his savings account for the 3-month summer to cover his rent for next year? The savings account earns 3% with monthly compounding.
A major automotive company is considering an agreement with a small manufacturer whereby it would be required to make end-of-the-year royalty payments of $500 000 beginning in year 4 and ending in year 8 (five years in total).
During spring break, students have an elasticity of demand for a trip to Florida of -3. How much should an airline charge students for a ticket if the price it charges the general public is $360? Assume the general public has an elasticity of -2.
In the real-world, opening up to free trade creates winners and losers. In particular, the factors specific to the import competing sector in the short-run.
what is the marginal utility of X? If a consumer moves downward along an indifference curve, what happens to the marginal utilities of X and Y? What happens to the MRS?
How have the two political cultures of Texas, individualism and traditionalism, been reflections classical liberalism and social conservatism?
Explain how does the deposit primarily change the T-account of the local bank. How does it change the money supply.
An increase in the labor force: Consider a onetime change in government policy that immediately and permanently increases the level of the labor force in an economy (such as a more generous immigration policy).
What is governemnt regulation like in your company's industry? Does the government employ any regulation designed to ensure that competition is healthy or the rights and welfare of consumers is protected. Would you support governments breaking up com..
CSR and Boral have announced the intention to form a joint venture of Australian east coast brick operations, citing reduced brick usage as a major cause
An equipment rental firm purchased a new scissor lift to add to its rental fleet. The scissor lift cost $18,000 and is expected to have a useful life of 4 years. The salvage value at the end of the lift's useful life is estimated to be $4,000. determ..
BUS499(2011A) Final Exam: - Critically argue whether GDP is a good measure of economic well-being. You are required bring examples and academic references to support your answer.
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