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As an employer wants to reduce the production cost during the economic recession, he or she could choose to (1) lay off some workers without changing wages or (2) keep all workers but cut wages for all. Which method would you choose? Why?In an effort to reduce production costs there are many factors to consider in whether to lay off workers or reduce workers wages. For one, if workers are laid off is the company able to keep up the necessary levels of production output for revenue to remain above costs? If costs were reduced, would current workers leave in search of a better paying job? In either scenario would morale and employee satisfaction falter leading to a decrease in production and therefore revenue? Both cases could lead to decisions that create bad publicity as the company would be either letting people go or taking away money, but is one a better situation?
Explain how financial crowding out can reduce the effectiveness of fiscal policy. What determines the magnitude of crowding out?
The Ski Pro Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis.
q1 write a note on managerial decision-making under perfect information risk uncertainty.q2 show that the price effect
An airline ticket costs the same from casper wyoming to denver colorado and from denver to orlando florida. does this, Hire Microeconomics Expert, Ask Economics Expert, ... Does this make economic sense? Explain the rationale behind equal prices for ..
Are some workers more likely than others to be laid off and have a harder time finding another satisfactory job -
Copy Makers Corporation has just received a credit request from a new consumer who wants to buy a copying machine. As input to its decision of whether to grant credit,
What did the engineer mean about the large overhead rate being a disadvantage when placing bids and seeking new business?
If the beta of Amazon is 2.2, risk-free rate is 5.5 percent and the market risk premium is 8%, compute the expected rate of return for Amazon stock
When an economy grows the production or output increases. With the above data, believes that India has an inflationary gap, a gap was recessive or full employment?
After a 10 percent price discount, a company found that its weekly sales increased by 30 percent. If the marginal cost (MC) of this product is $40 each, determine the optimal price for this product?
If a manager that takes over a furniture factory and realizes immediately that it was throwing away at least $100,000 a year worth of wood scrap
1.Consider the advantages and disadvantages of extending property rights so that everyone would have the right to prevent people imposing any costs on them whatsoever (or charging them to do so).
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