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AES was formed in 1996 and hired employees that year. At a meeting in 1997, they expressed concern to an executive that the company was not likely to survive as they used outdated equipment and worked long hours. The executive told the employees that they should stay with the company because it was likely the firm would merge with another company and, if it did, the original eight employees would be rewarded with five percent of the value of the sale or merger of AES. In 2001, AES was bought by another company. Seven of the eight original employees were still with the firm and requested their five percent of the sale price. The company refused to pay, contending that the employees were at-will and there was no enforceable contract. The alleged agreement was illusory and, in any case, it violated the statute of frauds because it took more than one year to come into effect. The employees sued for breach of contract. The trial and appeals court agreed with AES; the employees appealed. Did the company and employees have bilateral or unilateral contract? Explain
Suppose that there is a negative externality in the market for trout in Colorado. Letting Q represent pounds of trout, explain (using graphs and words) why government intervention in the market for trout may be appropriate.
What effect, if any, would consumers pulling money out of their checking accounts and putting it into home safes have on investment, interest rates, and GDP?
Mona loves the crisp, refreshing, lemon-lime flavor of Sprite. She can buy as many cans of Sprite as she wishes at a price of $0.75. On a given day, her willingness to pay is $1.50 for the first can, $1.00 for the second can, $0.85 for the third can,..
Why US banking system is known as fractional Reserve? Why modern ban king systems are known as fractional reserve? What are the characteristics of frictional Reserve banking?
Assuming which the budget stays the same except for the interest on the debt for 10 yrs which will be accumulated debt
The high rates of unemployment and business bankruptcies during the Great Depression of the 1930s caused a dramatic increase in government intervention in the economy of the United States. What was the original intent of this government intervention?..
Illustrate what was the growth rate of nominal GDP between 1996 also 1997. Why do economists use real GDP per capita to measure the economic progress.
Calculate the (point) price elasticity of demand when price is $100. Is demand elastic or inelastic? Calculate the (point) price elasticity of demand when price is $700. Is demand elastic or inelastic?
Provide a detailed description of the issues that you have researched. Analyze the most significant economic effects of the researched issues on healthcare industry. Provide at least two (2) examples of these issues to support your response. Suggest ..
The Diamond Outlet has current earnings per share of $1.96 and an expected earnings growth rate of 2.2%, the required return on the stock is 13% and current book value per share is $12.70. What is the current market value of this stock?
The Coca-Cola Company has 40% of the cola market. Determine the probability that a sample proportion
Describe an example of a real-world industry or market that would be considered by economists to be a natural monopoly. What characteristics of the industry make it a monopoly? What is the impact of the monopoly power on its customers?
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