What happens to abc company profit

Assignment Help Microeconomics
Reference no: EM132500140

Andrew Shapiro is a sales agent for ABC Company. He has an effort cost function of C = e2 and a reservation wage of $1,500.His wage package is W = 1,500 + 0.2Q where the CEO sets the incentive at 0.2 and Q = 200e. Q is the output.

A. If the CEO increases the incentive from 0.2 to 0.25, what happens to the Andrew's effort?

B. If the CEO increases the incentive from 0.2 to 0.25, what happens to ABC Company's profit?

Reference no: EM132500140

Questions Cloud

What will the price be if automotive manufacturing corp : What will the price be if Automotive Manufacturing Corp. decides to sell the cars by itself?
How the development of the seeded grape has impacted society : Discuss how the development of the seeded grape has impacted society? This requires researching information beyond statements of simple
What is the future potential : Address market opportunity. What trends are favorable for the venture? What is the future potential? Are there barriers to entry? What are they?
What the effective human relations communications style : How can you use this information to improve your human relations communication style? What did you learn from taking this assessment?
What happens to abc company profit : Andrew Shapiro is a sales agent for ABC Company. He has an effort cost function of C = e2 and a reservation wage of $1,500.His wage package is W = 1,500 + 0.2Q
What is independent variable : What is her independent variable (IV) here? Describe two conditions she could create for the IV in her study. What is her dependent variable (DV) here?
What is mrp and erp : What is MRP and ERP? How do they attempt to simplify planning and control? What have been the challenges in using this approach?
What should have been implemented to prevent cyber-attack : Please identify what type(s) of new countermeasures should have been implemented to prevent this cyber-attack from occurring. Are there any
How does angela davis description of reproductive rights : How does Angela Davis's description of reproductive rights differ from how you have understood the pro-choice movement? In no less than 300 words

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the optimum bundle

1. George has a utility function xy+2x. He has 60$ in his pocket. x cost 4$ and y costs 2$. What is the optimum bundle?

  1 discuss several economic events that would increase a

1. discuss several economic events that would increase a countrys willingness to trade.2. in the offer analysis why

  The slope of the production function with capital per worker

The slope of the production function with capital per worker

  What is an example of one thing in world that could happen

Econ 202 What is an example of (just) one thing in the world that could happen, which would likely result in an increase in the Demand for a specific good.

  How to apply marginal cost and revenue maximize profit

How to Apply Marginal Cost And Revenue Maximize Profit? Marginal revenue concepts to business operations with the goal of maximized profitability.

  Purpose the market demand curve for a product

Purpose the market demand curve for a product

  What are the fiscal policy options available to government

The economy is in a recessionary gap What are the fiscal policy options available to the government?

  What are its total variable costs at this output level

At its current short-run level of production, a firm's average variable cost equal $15 per unit, and its average fixed costs qual $30 per unit. its total cost at this production level equal $900. What are its total variable costs at this output level..

  Probability of getting the sample proportion

What is the probability of getting the sample proportion that she obtained (or one that is lower) if the true population proportion is .60?

  Compute and interpret the coef?cient of determination r2

For the 13 obese young adults, the researchers reported a correlation of r = .50 between base- line and follow-up physical activity, with an associated p-value of .07. Give a practical interpretation of this correlation coef?cient and p-value.

  What happens to antonio budget line

Debra usually buys a soft drink when she goes to a movie theater, where she has a choice of three sizes: the 8-ounce drink costs $1.50,the 12-ounce drink $2.00, and the 16-ounce drink $2.25.Describe the budget constraint that Debra faces when decidin..

  Review problem on communication approaches

In emerging markets such as India, consumers shop far more frequently than in most Western countries, often daily. As a result, consumers there have many more.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd