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Suppose a drop in the compensating wage differential between risky jobs and safe jobs has been observed. Two explanations have been put forward: Engineering advances have made it less costly to create a safe working environment. The phenomenal success of a new action serial "Die On The Job!" has imbued millions of viewers with a romantic perception of work-related risks. Using supply and demand diagrams show how each of the two developments can explain the drop in the compensating wage differential. Can information on the number of workers employed in the risky occupation help determine which explanation is more plausible?
Two identical firms face linear demand. Market demand is given by P=30-Q. Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibria to perfect competition.
How does N, the number of firms in the market, affect each firms demand curve? Why. b. How many units does each firm produce? (The answer to this and the next two questions depend on N.) c. What price does each firm charge? d. How much profit does ea..
Use the following information for a company's output at various levels of employment (L) to compute:
Top Gun Marketing, Inc., offers overhead banner fly-by promotion services using their Cessna aircraft and banner creation facilities.
When income increased by 10%, the quantity of memberships of athletic clubs increased by 15 percent, the quantity demanded of spring water increased by 5 percent, and the quantity demanded of soft drinks decreased by 2 percent.
Determine the profit-maximizing output and price. b. Calculate profits and deadweight loss. c. If this was a monopolistically competitive firm, would your answer in parts a and b change.if this was a monopolistically competitive firm, what would happ..
Suppose the payoffs are instead as follows If they both open at location A, theater earns 12 while the restaurnat earns 8. If both open at B, the theater earns 8 and the restaurant earns 12. IF they open at different locations, they both earn 2.
Illustrate what are the disadvantages of forming corporate joint ventures between multinational corporations in the home and host country.
Describe what happens to price of a bond that pays a fixed percent of the face value every year when interest rates in the economy rise.
Economic and political stability are important factors to be considered when finalizing an international investment. Illustrate what are some specific risks of investing in politically and economically unstable countries. Cite real life examples.
discuss why this might happen. Suppose that labor and management agree to adjust wages continuously for any changes in the price level. How would such adjustments affect the slope of the aggregate supply curve
The Alpha Corporation is a member of the lamp industry, which is perfectly competitive. The value of a lamp is $50. The company's total cost function is:
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