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Last year the owner of an auto dealership changed her sales manager’s compensation plan. Previously, the manager received a fixed compensation. After the change, the manger’s compensation was based on a percentage of sales. Compared to last year, sales have increased substantially but profits declined. Using economic analysis, explain the outcome and then recommend additional changes that would correct the situation.
A monopolist has two sets of consumers. The demand for one set can be described by Q1 = 5 ? p. For the other set, the demand is Q2 = 10 ? p. The monopolist faces constant marginal cost of 2. Derive the monopolist’s total demand if the two markets are..
What would be additional revenue per hour obtained if company managed to have 10 doctors overseas on duty at any given time. What would be additional profit if company managed to have 10 doctors overseas on duty at any given time.
Elucidate how does knowledge of price elasticity among different groups of clients or for various products enable managers to price discriminate or change different prices for these groups.
A product earns an annual gross revenues of $90,000, the variable costs is $60. The fixed cost are $30,000 and the product is sell for $90. The quantity of product sold last year was $1000. The annual profit is most nearly:
Decide on the next steps based on the events that took place. What makes this next step the best decision?
I had a hard time grasping Straub and Werning (2014) (no paywall). I understand the general environment, but could someone explain intuitively what exactly the mistake in the original Chamley-Judd calculations was, related to the optimality of zero-c..
Many people believe that using plant-derived fuels or biofuels to power combustion engines is a relatively new and innovative concept.
q1. does the existence of poverty imply that our socioeconomic system is unjust? does the concentration of poverty in
What would the annual percentage change in velocity have to be on average for the quantity theory to hold.
Assuming that the budget stays the same except for the interest on the debt for 10 years, illustrate what will be the accumulated debt. What will the size of the budget be after 10 years.
This might be interpreted as an upward shift in the consumption function. How does this shift affect investment also the interest rate.
Assume there are no other countries willing to trade goods, so when there is no trade between these two countries, each country consumes the amount of wheat and clothing it produces.
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