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Instead of repairing the slippery floors on the worksite, management and labor both decide that each employee will get $3,000. Assume there are 4,000 employees and the probability of dying is 1 in 50. a. What is the value of 1 statistical life? b. Now assume the probability of dying is 1 in 5,000. What is the value of 1 statistical life? c. Now assume there are 6,350 employees and probability of dying is still 1in 5,000. What is the value of 1 statistical life?
Contrast two or three key economic factors for this country with the U.S. economy, and comment.
The loss to consumers can be decomposed into three pieces: a transfer to domestic producers, a transfer to the government, and a deadweight loss. Use your diagram to identify these three pieces.
Using production theory as a basis, is the CEO correct in his assumption that lazy workers or ineffective supervisors are to blame for the decline in productivity? What other explanations might be possible?
Illustrate what impression do you have of multinational firms that have operations in multiple countries.
Elucidate a process under which the competing oligopolists can divide the cake so that the two consumers (who are also the producers) are protected from the downfalls of consumers in oligopolistic markets.
Explain when prices are set by the sellers and are not determined by negotiation between the buyers and the sellers.
Evaluate the financial performance of the company using the information providedin scenario. Consider all the key drivers of performance, such as company profit or loss.
Illustrate what recieves goverment subsides that are in place to protect the population rather than for economic reasons.
Two firms are located on the line and sell identical products. Consumers obtain K utility from consuming a product; assume that K is large enough that all consumers purchase from at least one of the firms despite the costs of transportation.
Compute and indicate the area of profits on your graph. In light of your answer above, does it make sense that this firm is "maximizing profits".
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
Derive the simple bid-rent function for a model with only firms. Illustrate what factors can cause the city to grow larger.
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