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Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $55,000 and her store made $120,000 in profits (not counting payment to her top manager). She suspected the store could do much better and feared the fixed salary was causing her top manager to shirk on the job. Therefore, this year she decided to offer him a fixed salary of $28,000 plus 15% of the store’s profits. Since the change, the store is performing much better, and she forecasts profits this year to be $260,000 (again, not counting the payment to her top manager). Assuming the change in compensation is the reason for the increased profits, and that the forecast is accurate, how much more money will the owner make (net of payment to her top manager) because of this change?
Suppose that the cost of eradicating polio from a society of 1,000 persons is $5 per person. Also suppose that only two persons in the society will benefit from that policy, and the benefit to each of those persons is $2,000. Then what is the social ..
Total hours worked, and average labor productivity all are procyclical. Which variable, output or total hours worked, increases by a larger percentage in expansions falls by a larger percentage in recessions.
Explain terrorist attacks foster instability and may affect productivity over the short and long term.
Do we have enough money in circulation in the public? Explain. Do you think that it is necessary to control money supply. Why or why not? Explain. Is it good or bad to have too much money in circulation in the public? Explain.
A consumer buys only two goods, X & Y. a) If the MRS between X and Y is 2 and the marginal utility of X is 20, what is the marginal utility of Y?
Calculate the price of elasticity of demand for paint and show your calculations. decide whether the demand for paint is elastic,unitary elastic, or inelastic. explain your reasoning and interpret your results.
The legislative branch of the American government is bicameral. In a minimum of at least two well-written paragraphs, define and discuss the advantages of a bicameral legislature, including how and why this came about. Reference should be made to the..
Discuss the advantages and disadvantages of financial statement analysis. Also discuss how it can help a manager make decisions and how it might mislead you?
To what extent does educational planning in the policy decision ought to be guided by economic considerations
Illustrate what conclusions can you draw about the similarities and differences between the EU and globalization.
Define absolute and comparative advantage in your own words. Elucidate how absolute and comparative advantage were used in your simulation.
Illustrate what is projected credit markets. How do you use this to make business decisions. Also how would investment or returns on excess cash affect a auto business.
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