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If a firm is very dependent on firm-specific human capital then is should: a)develop programs for sending employees to the local university b) create a extensive internal labor system for career advancement c) offer compensating differentials for hardships d) use only benchmark competitive wage rates
Raise or Lower Tuition? Suppose that, in an attempt to raise more revenue, Nobody State University increases its tuition. Will this necessarily result in more revenue?
Explain why it is not possible for one agent to have a comparative advantage in all goods, a worked example with calculated values would be useful.
A chemical company determined the need for a chemical additive that will improve their product by 20%. The company’s CEO arranged to purchase the additive through a 5-year contract at $7,000 per year, starting 1 year from now. He expects the annual p..
Assume that Robert is willing to work for 40 hours per week no matter what is the wage rate, so his labor supply curve is vertical at 40 hours. The demand curve for Robert is given by the equation: W = 120 – H, where W is the hourly wage rate and H i..
Coke also Pepsi have their market dominance for nearly a century. General Motors also Ford have been hard hit by competition.
Why is the demand curve for a monopolist downward sloping, while the demand curve for the perfectly competitive firm is horizontal?
Economic laws are established in order to make successful prediction of the outcome of human action.
The “Broken Window Fallacy” goes as follows. A baker comes to his shop one morning and discovers someone has thrown a rock through his window. It will cost $300 to fix, and while he is bemoaning this someone says “I know it is hard for you, but socia..
In a study of vehicle ownership, it has been found that 31% of U.S. households do not own a vehicle, with 48% owning 1 vehicle, and the remaining owning 2 or more vehicles. When testing (at the 10% level of significance) whether the vehicle-ownership..
Tyrion can either buy wine or pay for female companions. Wine costs 10 gold dragons and female companions cost 100 gold dragons. When all of his income is spent, Tyrion figures that his marginal utility from female companions is 80 and his marginal u..
What are an investment bank and what services it provides? Be sure to address the differences between the investment bank and the commercial bank and answer the question of who would use an investment bank. Also, discuss the importance of investment ..
Which of the following is NOT a possible way for a price-fixing scheme on potatoes to fall apart?
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