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Two successful company 'sare observed with quite different compensation plans for their salespeople. One firm pays its salespeople on a commission basis, whereas the other firm pays its salespeople fixed salaries. Do you think that one of the two companies is making a mistake? What are the pros and cons of each approach?
Calculate the book price and quantity effects of the local 8% sales tax. With perfectly elastic demand, who pays the economic burden of such a tax?
Illustrate what options do Americans have in protecting their Social Security and dealing with these issues? How are these done on the microeconomic level.
Elucidate how the enterprise zones could be utilized to enhance the economic development implications of your policy issue.
Explain how much will your industry's total revenues (revenues from both products) change if you increase the price of good X by 1 percent.
Let P = 53-Q be a consumer's long-run demand curve for gasoline, and P= 103-2Q be the consumer's short-run demand curve,
Show the area on the graph that would correspond to consumer's surplus earned by the typical boarder/skier with this payment scheme. Explain your answer briefly.
Using diagrams for both industry and a representative firm, illustrate competitive long run equilibrium. Assuming constant costs, employ these diagrams to demonstrate
Suppose that corn production requires only land and can production requires only labor.
Illustrate what would you expect will to the price and quantity sold of Toyota sedans, if the price of Kia sedans fall.
During the period of airline regulation, the government set airline fares and regulated an air carrier's entry into and exit from particular markets.
Consider that demand elasticity is defined as the percentage change in quantity divided
Elucidate how have these policies affected the prices of the product the industry produces?
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