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Describe how a manager who derives satisfaction from both income and shirking allocates a 10-hour day between these activities when paid an annual, fixed salary of $115,000. Time spent working: hours Time spent shirking: hours When this same manager is given an annual, fixed salary of $115,000 and 3 percent of the firm’s profits—amounting to a total salary of $140,000 per year—the manager chooses to work 6 hours and shirks for 4 hours. Given this information, which of the compensation schemes does the manager prefer? The scheme with fixed payment of $115,000 and a percentage of profits. The manager is indifferent between the two payment schemes. The scheme with only a fixed payment of $115,000.
What are the goals of an economic system? What is the criterion to measure the effectiveness os a system? What are monetary goals? What are the fiscal goals? How do governments influence monrtary and fiscal goals?
The Dallas Electronics Company is considering replacing an old, 1,000-pound-capacity industrial forklift truck. The truck has been used primarily to move goods from production machines into storage. Compare the after-tax EUAC of owning versus leasing..
An outside firm can make components according to the cost function TC=1m + 10Q. Suppose it typically produces 10m units. What is this firm’s cost per unit? Suppose that your firm is able to buy components at this cost per unit. If you order 1m units ..
If the demand for a commodity is elastic, an increase in the price of the commodity. Assume the cross price elasticity of demand for products A and B is positive. Then, the products must be
If individuals resisting change are included in making change decisions in an attempt to gain their support, what is this approach called?
It is important for companies to differentiate their services or products in the market place. This differentiation sometimes leads to building a core competency. which we will explore in the following individual assignment.
Compute the price and quantity of equilibrium in each country when both country A and country B are closed economies.
During the given months of 2014, the Federal Reserve has continued its bond-buying program, called "Quantitative Easing 3" (QE3). During April, the Fed purchased $40 billion worth of bonds. Because of QE3, which of the answer choices gives correct po..
What common assumptions guide the Thucydides and Procopius readings regarding how a historian should chronicle a plague? What different assumptions do they possess about both human behavior and the role divine forces play in human history? How do bot..
Medfin Accounting Company (MAC) specializes in providing accounting and tax services for medical establishment and professionals. Presently, the company's production method is highly labor-intensive because many of the books keeping tasks are done ma..
Suppose Mayor Emanuel proposes a project that will cost $200,000 today, $100,000 next year and 15,000 to dispose of it in ten years when the project is completed. Once finished three years from today, it is expected to generate a net income of 40,000..
Assume an economy with a total population equal to 1. Individuals can only be employed or unemployed. Suppose this economy’s steady-state unemployment rate is 5%. We know that workers can lose their jobs and become unemployed with probability 4%. Wha..
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