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You have been tasked with determining the pay structure for a new team of sales workers. You are considering whether to pay them strictly on commission or whether to pay a smaller commission but guarantee a modest base salary. Discuss the advantages and disadvantages of each pay structure, paying attention to such ideas as marginal benefit and sunk cost. Although it is impossible to say which structure would be better without more specific information, is there a structure you would lean toward preferring? Why or why not? Are there any ethical issues to consider here?
Distinguish between liberal economics and conservative economics. Why is macroeconomics an inherently political subject? Summarize the problems that can be created by rapid inflation. How can inflation become self-perpetuating?
Consider a free market with demand equal to Q = 60-4P and supply equal to Q=2P. What is the value of consumer surplus? What is the value of producer surplus?
A corporation purchased a machine for $60,000 five years ago. It had an estimated life of 10 years and an estimated salvage value of $9,000. The current BV of this machine is $34,500. If the current MV of the machine is $40,500 and the effective inco..
q1. how much deadweight loss does great reception causes when it restricts output and charges a price above marginal
Let's try to define the attributes of a good follower. What does it take to be a good follower? How can we support the leader in our team? What are some ways we can avoid hindering leadership?
Suppose an economy begins in steady state and is characterized by the following parameter values: s bar=.2 , d bar=.1, A bar, =1, L bar= 100. Apply your answer to calculate the growth of per capita GDP in the period immediately after each of the chan..
What will happen in the cell phone market as technology improvements bring cost down?
How much money must be invested in an account that pays 6% per year interest to be worth $20000 at the end of 8 years of (forgetting the leap years and making "convenient" assumptions) : annually
What is an efficient outcome? How does the assignment of property rights affect the efficiency of outcomes? "Competitive markets tend toward efficient outcomes." Explain what this means. Assume the market for oil is currently in equilibrium. Why woul..
When the economy went into recession, the Federal Reserve took several actions in an effort to jumpstart the economy (lowering interest rates, purchasing U.S. Treasury bonds, etc.). Do you think those efforts were successful? Should similar or furthe..
More Doctors Steer Clear of Medicare Fewer American doctors are treating patients enrolled in the Medicare health program for seniors, reflecting frustration with its payment rates and pushback against mounting rules, according to health experts -- j..
An equipment costs $100,000, has a useful life of 5 years and has zero salvage value at the end of its useful life. Determine the depreciation allowance for the first two years and book value at the end of year 1 and year 2 for the following methods...
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