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Assume that you are the manager of a company that experiences a 50% increase in market demand for its product during the summer months (June through August). One option for meeting this increased demand is to require existing company employees to work overtime for 20 hours per week. A second option is to hire seasonal workers to meet the demand, and the third option is to subcontract the extra production to a competitor. What are the likely opportunity costs associated with each option? Explain your rationale. Based on the principle of increasing opportunity costs, which of the two options would you select and why? Why do you think this option will reduce the opportunity costs more than the other options?
Illustrate what is difference between contractionary and expansionary monetary policy. Illustrate what are pros and cons of using expansionary.
Critically evaluate measures used by governments and central banks to manage the economies of their countries.
How many major wireless phone handset manufacturers are there?
Assume your elasticity of demand for your parking spaces is -0.5 and price is $20 every day. If your MC is 0 and your capacity at 9 a.m. is 96% full over the last month are you optimizing.
Calculate the substitution and income effect for the utility function: u(x,y) = x + lny and show that the Slutsky equation applies to those cases.
A town wants to build a new bridge. Construction firms will submit sealed bids. The town will award the contract to the firm that submits the lowest bid and will pay the firm the amount of the second lowest bid (that is, the town will conduct a secon..
What is the relationship between the multiplier and the marginal propensities? Explain.
The number of people employed in a city were 128,000. The adult population was 201, 000 and the labor force participation rate was 67%. Based on the figures listed above, what is (1) the unemployment rate, (2)labor force participation rate, (3) numbe..
Explain how would you design a specific customized compensation plan for Agent-Principal.
An experienced salesman offers his service (help you perfectly price discriminate) for $800. Based on c) and d), do you accept the salesmans offer? Show work, and explain briefly.
What type of cost has NO impact on determining the profit-maximizing sales quantity? To earn the greatest possible profit, a firm must: In which situation might a company NOT want to maximize profit?
An artist makes a beautiful instrument that becomes famous throughout the country. A number of claimants arise, each of whom argues that they deserve the flute: the artist who created it, the most talented musician, the poorest musician, the neediest..
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