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What are the advantages/disadvantages for time-based pay plans and outputbased pay plans? If you are an employer, which one would you use for your employees if they are (a) salespersons; (b) managers. Why?
A ________ agreement among rival firms will most likely specify the price each firm will charge and the quantity each firm will produce/sell.
Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. Calculate your aunt's expe..
When a firm uses debt in its capital structure, it is referred to as a leveraged firm and this concept is referred to as financial leverage. Operating leverage refers to a firm's fixed costs of production. The higher the fixed costs, the greater the ..
A friend has taken you out to lunch and you offer to leave the tip. The bill including the tax came to $38.85. How much you leave as a tip? Explain.
You had been offered a full time job with a salary of $80,000 per year. You are currently running your own small business with annual revenue of $150,000 and accountant costs of $60,000. Would you accept the job or continue with your own business? Wh..
Suppose the price of good 1 is $2, and the price of good 2 is $1. Derive Pete’s demand function for good 1 (as a function of income). Is good 1 normal for Pete? How about good 2? Plot the Engel curve for goods 1 and 2 (with income on the horizontal a..
When entrepreneurs are investing their own money, how do they decide which projects they should undertake? When political decision-makers allocate the funds of others (taxpayers), how do they decide which projects to support? Explain.
An American is considering relocating their Oregon facility to Nicaragua. The current exchange rate is 1 U.S. dollar (USD) to 25 Nicaragua Cordobas (NIO). The current wage rate in Nicaragua is 200 NIO per hour, and the U.S. wage rate is $15/hr. If th..
Outline the product life cycle and its impact on international business
What is the near future of the US economy? Do you see a robust, strong growth or another recession in the near future?
Suppose X - M = net exports; T - G = government sector balance; and S - I = private sector balance. What relationship exists among these variables?
Consider a monopolist in a market with linear inverse demand p(q) = 4 minus q/2. The monopolist's cost function is c(q) = 2q. Write down the monopolist's profit function. Compute the profit-maximizing quantity and the corresponding price. Please show..
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