Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The local government has hired someone to undertake a public project. If the project fails, it will lose $20,000. If it succeeds, the project will earn $100,000. The employee can choose to ‘‘work'' or to ‘‘shirk.'' If she shirks, the project will fail for sure. If she works, the project will succeed half of the time but will still fail half of the time. The employee's utility is $10,000 lower if she works than if she shirks. In addition the employee could earn $10,000 in another job (where she would shirk). The government is choosing whether to pay the employee a flat wage of $20,000 (no matter how the project turns out) or performance-related pay under which the employee earns $0 if the project fails and $40,000 if it succeeds.
a. Assuming both parties are risk neutral, which compensation scheme should the government use?
b. Do you see any problem with the performance-related pay scheme when the employee is risk averse?
How has this event affected the prosperity of the firm and the owners of the factors of production employed by the firm? Explain.
In discussion of business and society. Why is there a tendency to focus on large firms rather than small or medium-sized firms? Have the corporate ethics scandal of the past decade affected small- and medium-sized firm? If so, in what ways have th..
how would this merger affect airline costs?
Suppose instead that the goverment wished to raise GDP to 7,100, but it was unwilling to run a surplus or deficit. Therefore the change in government purchases would have to be matched by and equal change in taxes. What change in government purcha..
You are planning to build a new home with approximately 2,000-2,500 gross square feet living space on one floor. In addition, you are planning an attached two car garage (storage space) of approximately 450 gross square feet.
The objective function measures profit, it is assumed that every piece stocked will be sold. constraint 2 measures time to set up the display in minutes. Constraints 3 and 4 are marketing restrictions.
You open a savings account to save for a new house. Everymonth you put $100 into a savings account which pays 5% interest compounded monthly.
Why would directors be more efficient than shareholders at improving managerial performance and changing their incentives?
Executives estimate that they will have gross revenues of $500,000, total costs of 300,000, 30,000 in allowable tax deductions, and a one time business start up credit of 8000. What is taxable income for the first year.
If I rises to 100 (we discuss what determines I in later chapters), what will the effect be on the equilibrium income?
What is the difference between the interest rate on one-year dollar deposits and that on one-year euro deposits (assuming no repayment risk)?
Tom earns $15 per hour for up to 40 hours of work each week. He is pair $30 per hour for every hour in excess of 40. Tom faces a 20 percent tax rate and pays $4 per hour in child care expenses for each hour he works.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd