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You work for a hotel chain that is considering expanding into international markets and you are looking for the right person to help oversee that process. You identify a top employee at another firm who seems to have exactly the skill set needed to help your company succeed. You know she currently earns $250,000. You offer her $300,000. In the following scenarios, answer whether or not the firm is likely to end up a victim of the winner’s curse, and give a short explanation. a. Her productivity, unbeknownst to you, is $275,000. b. She works for a company that manufactures apparel that recently drastically down--sized. c. Her current skill set is largely firm specific capital. d. She recently went back to school and earned a masters degree and now seems over--qualified for her current position.
trace the evolution of work on the laissez-faire doctrine through two arcs. first those theorists who are trying to
Consider a group of 10 friends who are considering going on a road trip. In determining whether or not to go, each friend considers both how much they would enjoy the trip and how much it will cost them. The cost of the trip will be $500 total, and w..
Suppose a closed economy decides to lower taxes (assume Ricardian equivalence does not hold), all else held constant. What will happen to savings, investment, and the interest rate? Show graphically what happens (be sure to label curves, axes, equili..
Explain how meeting-competition clauses may serve as an enforcement mechanism for price-fixing agreements of cartels.
what is the threshold value of the discrimination coefficient "d" at which prejudiced businesses will start hiring only white workers?
What global social interests or responsibilities, if any, do we have as consumers to the losers of globalization? Discuss and justify your postings and responses with other students in our course.
Inflation may fall without a significant increase in unemployment if
Explain how the Typical Firm also Industry Delivery also Demand to analyze the impact of this tax.
Suppose there is a $200 billion recessionary gap. If there are no taxes or imports to restore the economy back to potential GDP how much should government expenditure be changed if the marginal propensity to consume is 0.75? Does government expenditu..
The licorice industry is competitive. Each firm produes 2 million strings of licorice every year. Total cost of strings have an average.
Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor force..
Discuss in detail whether health insurance should be provided by employers. (Hint: refer to how employer-provided health insurance may address adverse selection, moral hazard, health care costs, etc.)
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