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One type of benefits involves giving workers discounts on the firm’s products. We noted that this type of system could reduce the firm’s costs by reducing some marketing expenses.
A. Explain why offering such discounts (as opposed to increasing workers’ cash wages by an equivalent amount) can also help to attract a more knowledgeable or enthusiastic sales staff.
B. Very few firms pay workers entirely in the form of merchandise discounts (or even just in the form of merchandise itself). Why not? Explain in terms of the cost the firm must pay in order to attract workers.
C. (This is related to part (b).) Many high-ranking executives receive part of their pay in shares of the firm’s stock, supposedly to motivate them to work to increase the firm’s stock price. In order to ensure the executives remain motivated, their contracts usually prohibit them from selling those shares for a long period of time. Question: Explain how the restriction on stock sales may force the firm to pay the executive more than it would if it simply paid the executive in cash.
Absolute and comparative advantage: Explain how these concepts describe the benefits and costs of international trade.
Explicate how firms decide on where to produce depending on the marginal product and average product.
Explain the role that money plays under the Classical Macroeconomic Model. As a part of your discussion, include the impact the Quantity Theory of Money and Say’s Law have on this model and state in algebraic terms how the money supply relates to pri..
q.consider a market with demand q 10 - p. currently there is an incumbent in the market with capacity k. there is a
Elucidate the fact that the cross-price elasticity of natural gas with respect to the price of fuel oil.
If the bond matures in five years and Jerry can buy one now for £3500, elucidate what is his IRR for this investment.
What market structure would this industry fall under? What are the names of other firms in this industry? Is it monopolistic competition, oligopoly, monopoly, or perfect competition?
Calculate and compare the profit under each flight. Should the airline replace its night flight from Los Angeles with a morning flight?
The graph shown demonstrates a tax on sellers. Which of the following can be said about the effect of this tax?
Discuss salary determination in a labor market in which workers are unorganized and many firms actively compete for the services of labor.
Listing different orderings and coalitions is not going to work for this problem because there are too many possibilities, excluding you can use different tools which we have discussed in class.
Assuming that the income effect is negligible, how much will he be hurt if the cost of strawberries goes from $1 a pint to $2 a pint.
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