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An electrical contractor has a job which should be completed in 100 days. At present he has 80 men on the job and it is estimated that they will finish the work in 130 days. If of the 80 men 50 are paid 190 pesos a day, 25 at 220 pesos a day, and 5 at 300 a day and if for each beyond the original 100 days, the contractor has to pay 2000 pesos liquidated damages.
(a) How many men should the contractor add so he can finish the work on time?
(b) If the additional men of 5 are paid 220 pesos a day and the at 190 pesos a day, would the contractor save money by employing more men than paying the fine?
Explain how do you go about drawing an indifference for such a utility function.
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In the market for organs for transplant, such as kidneys and hearts, the price is constrained to equal one. Opposition to any type of remuneration for donating organs has been all but absolute from physicians and legislators.
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What level of revenue is needed to earn a target income of $540,000? If variable costs drop to $36 per patient day, what increase in fixed costs can be tolerated without changing the break-even point as determined in part (a)?
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Assume your boss purchase out every single pizza store in the US. Your cost-demand conditions are as follows: profit maximizing quantity - 60 pizzas; price - 20$ per piece;
Describe the effect of such clauses on both the government, and other customers, noting, inter alia, the effect on the selling firmâ.
Consider the impact of unemployment benefits on the labour market. How is a more generous unemployment benefit likely to affect wage setting, search effort among unemployed job searchers, and the rate of unemployment.
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