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Q. The owners of a small manufacturing concern have hired a manager to run the company with the expectation that he will buy the company after five years. Compensation of the new vice president (manager) is a flat salary plus 75% of the first $150,000 of profit, and then 10% of profit over $150,000. Purchase price for the company is set as 4.5 times earnings (profit), computed as average annual profitability over the next 5 years. Elucidate that contract align the incentives of the new vice president with the goals of the owners?
A consumer must pay $10 per visit to an amusement park for the first five visits but only $5 per visit beyond five visits. What does the budget.
Based on some economists' definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market.
Each customer purchases their smoothie at the store where the total cost, i.e. price of smoothie plus travel cost, is the lowest.
When you purchase and eat a hamburger, no one else can eat the same hamburger. When you download a file on the Internet, the file is still available.
What is the deadweight loss if buyers, instead of vendors, are required to pay the tax of $4 for each unit of the good sold.
Ordinary least- squares method or the two- satge least squares method for estimating industry demand for rutabagas.
During the working life, how do you graph that without knowing more information.
Homo sapiens production possibilities curve have shifted outward to the right much more rapidly than that of Neanderthals
What are the components of aggregate expenditure. What determines the slope of the aggregate expenditure line.
Illustrate the significance of resource pricing explain rule or criteria of employing for resources under pure and perfect competition.
On one hand, the WTO's role in international trade is becoming more significant. On the other hand, its verdict on the Brazil's Embraer versus Canada's Bombardier case did not seem to solve the problem.
The vertical long run AS curve compatible with classical economics implies that AD only determines the price level
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