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U.S. Trucking pays its drivers $40,000 per year, while American Trucking pays its drivers $38,000 per year. For both firms, truck drivers average 240,000 miles per year. Truck driving jobs are the same regardless of which firm one works for, except that U.S. trucking givers each of its trucks a safety inspection every 50,000 miles, while American Trucking gives each of its trucks a safety inspection every 36,000 miles. This variation in safety inspection rates outcomes in an unusual rate of fatal accidents between the two companies. In particular, one driver for U.S. Trucking dies in an accident every 12 million miles while one driver for American trucking dies in an accident every 15 million miles. Elucidate the value of a trucker's life disguised by compensating discrepancy among the two firms?
Representatives were to logroll (trade votes) to get their preferred policy to pass, what would be the result. What are the total benefits from each project.
Distinguish between the resources market and the product market in the circular flow model.
Why do celebrity icons receive such widespread attention and adulation
Interior Department recently announced that it will increase the entrance fees at Yellowstone National Park in order to increase park revenues.
Imagine that you were the president of an emerging country that is trying to reduce the number of its imports
The equilibrium quantity increase or decrease depends on Demand
What can you determine about consumer demand for your product from this information.
Should the airline replace its night flight from LA with a morning flight as well as should the airline remain in business.
The People's Bank of China, the country's central bank, raised the reserve requirements of its top commercial banks to put a squeeze on the credit market
Visualize you are a manager for good or service used. From results of the deterioration equation, recommend strategies to either preserve demand if an increase over 3 periods occurs or improve demand
When would it make sense for a factory that is losing money to remain in operation
In this forum we discuss the different arguments that are made in favor of international trade protectionism and the important role of the politics of protectionism.
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