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1. Discuss the importance of the following factors on the optimal method of procuring an input.
2. Executive stock options are often seen as a simple and effective solution to the “other people’s money” problem that can occur when managers with little ownership interest mismanage firm investment opportunities. Explain any advantages and potential pitfalls to the use of executive stock options for this purpose.
How does an increase in the saving rate affect the break even and actual investment curves in the Solow model? Use graphs also.
Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial Economics) where interviewed regarding the effect on the firm they both work at. Keeping all else constant, their answ..
"Neither monetary policy nor fiscal policy alone can be effective in formulating sound economic policies for recession." Do you agree or disagree?
Suppose that the City of Detroit enacts a rent control law that reduces all current rents by 10%. Give the short run effects of the law: If the Detroit apartment rental market is competitive. Explain whether there is a shortage of apartments, a surpl..
You are considering two alternative plant layouts, A1 and A2, to improve its current layout. The cash flows are shown below. The first costs represent the expenses of rearranging the current layout to the alternative new layout and the annual savings..
The following table shows the hypothetical labor requirements per ton of wool and per hand-knotted rug, for New Zealand and for India. Labor Requirements per Unit New Zealand India Per ton of wool 10 hours 40 hours Per hand-knotted rug 60 hours 80 ho..
Most U.S. and some European airlines now impose additional charges for everything but a seat on the flight. Specific seat selection, baggage, beverages, and nearly every amenity that was once included in the ticket price is now a source of “ancillary..
Why might an economics professor who is good at fixing cars still prefers to take his automobile to a garage for a tune-up? If the same professor decides to get a tutor for his daughter in economics instead of tutoring her himself does the same princ..
China’s currency, the renminbi, has strengthened in recent months. Explain what a stronger renminbi means for Chinese citizens. What does it mean for U.S. companies that use China as a manufacturing base?
question 1 nbspa group of rogue french farmers has gone on a furious egg breaking rampage destroying tens of thousands
The main reason firms may exit a market is because of:
Consider the market for carbonated water and suppose that demand is given by D(p) = 100 – 5p There are only two firms producing carbonated water, each with the same constant unit cost c = 2. What are the equilibrium prices and quantities if the firms..
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