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Your firm has been offering a combination of salary and stock options for employees. An entry level electrical engineer earns $75,000 plus $25,000 in stock options.
a) Your accountant tells you this is cheaper than paying him only in salary. Explain why he is wrong.
b) Aside from the expense, why do options not make sense for most employees at the firm?
c) On the contrary, why might options be a good form of compensation for the CEO?
If the manager of impact industries decides to produce 240 units, illustrate what will the long-run total cost also long-run average cost of producing 180 units.
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Assume that the typical household behaves according to Irving Fisher's two period model, that consumption in both periods is a normal and that households are initially savers.With the aid of a diagram, analyse how a tax cut in period two affects cons..
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Classify the following topics as relating to microeconomics or macroeconomics?
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Explicate why the government expenditure multiplier is different from the tax multiplier.
The Soup Nut serves his signature minestrone soup in two different bowl sizes, large and small. What strategy should he use to extract the most surplus possible out of customers who come in two types, regular and big eaters, when he cannot distinguis..
To properly justify the governmental provision of a public good, it must be the case that the __________ and that __________.
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