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You are the manager of a firm that sells output at a price of $40 per unit. You are interested in hiring a new worker who will increase your firm's output by 2,000 units per year. Several other firms also are interested in hiring this worker.
What is the highest annual salary you should be willing to pay this worker to come to your firm?
What will determine whether or not you actually have to offer this much to the worker to induce him to join your firm?
The recent recession seems to be ending, the number of people with jobs is expanding, and it appears that wage levels are beginning to increase. Against that background, assume that you own a perfectly competitive company that makes a popular line of..
What is the value of the account at the end of year 20 in year-0 dollars? If the time value of money is 4%, what is the present worth?
If all firms, existing and potential new entrants face decreasing industry costs in the long run under perfect competition, the industry supply curve will:
A drought in Alberta and Saskatchewan has made grain, and therefore cattle feed, quite expensive. Many ranchers cannot afford to feed their cattle, and have sold much of their herd for slaughter. As it happens, the slaughter of beef cattle has coinci..
You purchase a very small 1-bedroom apartment in New York for $1,000,000. You obtain a mortgage with a fixed monthly interest rate, ic = 0.42%/month. You can pay this loan off with a fixed monthly payment of M1, or you can pay a linearly increasing p..
As part of his plan to reduce the budget deficit, President Clinton proposed raising the excise tax on gasoline by 50 cents per gallon. While passage of this proposal was blocked by Congress, what would have happened to the sales of gasoline if the p..
How could a terrorist impact the United States' economy - not the attack itself, but its eventual consequences - Is the energy infrastructure the most viable target for the international terrorist?
Two clinics want to merge. The price elasticity of demand is -0.20, and each clinic has fixed costs of $60,000. One clinic has a volume of 7,200, marginal costs of $60, and a market share of 2 percent. What are the total costs, revenues, and profits ..
International Current Events Research on Ethical Missteps or Social Responsibility
If the stock price rises, the price of a call option on the stock ________ and that of a put option _________ . (Why?)
Does maintaining a quasi-peg to the US dollar have a cost for China? Does the policy of buying US Treasury bonds have a cost for China's economy?
Explain briefly the various parts of the circular flow diagram representing the interactions between households and firms in a simple economy.
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