Discuss the potential incentive effects of the given policy

Assignment Help Managerial Economics
Reference no: EM13921269

1. Payments under some retirement plans are based on the average earnings in the last few years of employment. Discuss the potential incentive effects of this policy.

2. Companies can often gain if they listen to employees about what they prefer in the way of a fringe benefit package-a more preferred package serves to attract and retain employees at a lower cost. Nevertheless, many firms have shunned "menu plans" where each employee would be completely free to choose their own fringe benefit package. (For instance, those wanting health insurance could buy it through the company, whereas those who want some other benefit or cash would make different choices.) Why do you think many firms have avoided this type of menu plan?

Reference no: EM13921269

Questions Cloud

What type of exposure could the cfo of h&m in the u.s. : What type of exposure could the CFO of H&M in the U.S. be subjected to since H&M is based in Sweden and the financial statements are prepared according to IFRS?
Why the board of trustees might want to continue the policy : The board of trustees of the University of Medford has been asked to reconsider this policy. Provide an economic argument to explain why the board of trustees might want to continue this policy.
Bid for each share of vandell common stock in an acquisition : Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt. Vandell's debt interest rate is 7.3%. Assume that the risk-free rate of interest is 4..
Production of sub-assemblies : Develop an MRP for Space Age Furniture Company using the information in the case including the production of sub-assemblies in lot sizes of 1,000.
Discuss the potential incentive effects of the given policy : Payments under some retirement plans are based on the average earnings in the last few years of employment. Discuss the potential incentive effects of this policy.
Calculate how liquid a firm is and whether it can pay bills : Execute an investigation into whether the firm's managers are generating adequate operating profits on the company's assets. Calculate how liquid a firm is and whether it can pay its bills
Long-term government bonds are normally distributed : Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6.7 percent and a standard deviation of 10 percent. What is the probability that your return on these bonds will be le..
Attempting to identify its weighted average cost of capital : Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to present this information in a PowerPoint presentation ..
Assignment on social entrepreneurs : A social entrepreneur is a leader or visionary who is driven to achieve social change. Social entrepreneurs provide creative solutions for society's problems. They are committed to changing conditions in society for the better with their ideas.

Reviews

Write a Review

Managerial Economics Questions & Answers

  That we identified from the completion of the internal marke

Look through the costs and benefits that we identified from the completion of the internal market. Do the same costs and benefits arise from the enlarged EU of 27 members?

  Use of expansionary policies

Monetary and fiscal policy are government attempts to smooth the business cycle, especially the use of expansionary policies to return to GDP growth from a recession.  The goals are relatively short-term, not more than 5 years.  Long-term growth, how..

  Does either firm have a dominant strategy

Stella Ann Freeman is having a difficult time deciding whether or not to purchase a new car. How would understanding the concept of opportunity costs help her make a decision?

  Managerial economics and quantitative analysis question

managerial economics and quantitative analysis question 1after two quarters of increasing levels of production the ceo

  Explain which of these interest rates federal reserve sets

Explain why the money multiplier differs from the simple deposit multiplier - Explain which of these interest rates the Federal Reserve sets.

  Why american companies are sometimes opposed to exporting

The importance of trade continues to be a topic that is debated because the gains are not always quantifiable by those involved. An article by Ed Crooks published on January 6, 2011, America: Riveting Prospects, discusses why American companies ar..

  Famous marketing firm

Jaynet spends $25,000 per year on painting supplies and storage space. She recently received two job offers from a famous marketing firm - one offer was for $125,000 per year, and the other was for $105,000. However, she turned both jobs down to c..

  Short run marginal costs

When Average cost is falling, marginal cost will be below average costs?

  Why might it be value increasing for the firm to make kraft

Why might it be value increasing for the firm to make Kraft accountable for such events. It is true that she cannot control those events.

  Determine the best course of action

A European consortium has spent a considerable value of time and money making a new supersonic aircraft. The aircraft gets high marks on all performance measures except noise.

  The lift will allow 300 additional skiers on the slopes

Deer Valley Lodge, a ski resort in the Wasatch Mountains of Utah, has plans to eventually add five new chairlifts. Suppose that one lift costs $2 million, and preparing the slope and installing the lift costs another $1.3 million. The lift will allow..

  Understanding of managing energy sources

Identify background information of why you chose the particular organisation as it relates to your understanding of managing energy sources

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd