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!
Dan and Ann are chemical engineers working for a biotech company. Each of them would like to be promoted to a managerial position, but only one of them can get the job. Their supervisors have indicated that the one who produces more publications in scientific journals over the next three years will be promoted. Each published article increases the firm's revenue by $10 (take the numbers to be in 1,000s).
The number of articles each can produce depends on how hard they work. If y is the number of published articles at the end of the third year, then yA = 0.5eA + _A and yD = 0.5eD + _D, where e represents effort and _ is a luck factor over which the researchers have no control. _A and _D are distributed such that (_A - _D) is uniform on [-½, ½]. Both Dan and Ann are risk-neutral and have disutility of effort given by C(e) = 2e2.
Let w0 = 0 be the wage each of the two gets during the three years before the promotion decision, W+ the lifetime income of a manager and W- the lifetime income of the employee who was not promoted. The firm wants to set the wages so as to maximize profit. Dan and Ann are willing to engage in the promotion contest if their expected lifetime utility is at least zero.
Calculate the optimal lifetime incomes W+ and W- the firm will promise the employees. What are the firm's expected profits from hiring Dan and Ann?
Limitations of Uneven Distribution of Income and Wealth Unlike the historical experience of the now developed countries, the rich in contemporary Third World Countries are not
Market research operations to obtain reliable and relevant information about the trends in market. A data analysing and processing system to estimate as well as evaluate the s
Quality and Quantity Controls: Demand forecasting is a necessary and valuable instrument in the control of management of an organisation to provide finished goods of correct quant
Why Do Monopolies Exist? Monopolists have market power and as a consequence will charges higher prices and generate less output than a competitive industry. It produces profit
Movements along the supply curve Movements along the supply curve are brought about by changes in the price of the commodity. When price increases from P1 to P2, quant
Problem: (a) (i) Assuming that a household uses a subjective discount rate of 10%, calculate the amount that she must spend on consumption per annum during her years of existe
The Multiplier In his theory Keynes asserted that consumption is a function of income, and so it follows that a change in investment, which we may call ΔI, meaning an incremen
Autonomous Expenditure Also called Exogenous expenditure, is any expenditure that is taken as a constant or unaffected by any economic variables within our theory. For instan
d/f b/w MRTS and MRS
Q. Show the Changes in fixed costs and profit maximisation? A firm maximises profit by operating where marginal revenue equals marginal costs. A change in fixed costs hasn't an
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