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(1) SignalingA high quality worker, G1, and a low quality worker, G2, apply for a 4-year position at aconsulting firm. Both ponder going to college for 4 years to signal high quality. G1 incursno cost other than tuition of $50,000 per year. G2 incurs additional (mental) cost of$20,000 per year. The consulting firm wants to hire a high quality worker.(a) Assume the time students go to college is set at 4 years and cannot be changed. If thefirm offers quality-separating wages what premium should the firm offer to collegegraduates? What are the lower and upper thresholds?(b) Now assume the time students go to college is not predetermined. The firm that wantsto hire a high quality worker now sets a salary premium of $30,000 instead. What is thequality-separating college time?
imagine that you are a project manager and your project schedule indicates that the work to be completed by a critical
Globalization is becoming very important in economic discussions. While some politicians favor protectionist policies because they feel these policies protect domestic producers, others claim free trade increases economic activity and has advantag..
a low-carbon-steel machine part operating in a corrosive atmosphere lasts six years and costs 350 installed. if the
FULL karma for complete and clear response. 1. Under what conditions are the Cournot and Bertrand equilibria the same 2. What happens to price and output in the Cournot, Bertrand and Stackelberg models if marginal costs increase by 10 percent
Describe the model of consumer buyer behavior. Providing a list of the steps or a graphic of the model is not adequate, as you must explain how the process works in the real world using your own words.
"The Economics of Professional Sports" Please respond to the following: Explain the economic consequences that would unfold if one of the major four sports leagues in the United States reorganized into a single-entity league. Discuss the consequen..
Government spending is often too small to have the impact that governments usually want to see on the economy. However, something occurs in the economy after the initial government injection which makes the end result much larger than the initial ..
According to the Keynesian model of income determination, what determines a nation’s real aggregate income? According to the classical model of income determination, what determines a nation’s real aggregate income? What accounts for the difference b..
Allied company machines produces the output that it sells in the highly competitive market at the price of $100 per unit. Its inputs include two machines (which cost the firm $50 each) and workers
1. Inclusive property rights provide an investor: 2. Lawyer Ayres and economist Levitt considered the net benefits of installing a LoJack from the society's standpoint positive, because the annual installation and service charges on this equipment..
use the following data to calculate a the labor force participation rate b the unemployment rate and c the
Explain which bridges you would choose to attempt to use. (Assume you can put one foot on a bridge to see if it collapses before you attempt to cross.)
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