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DeVito Company operates in a state where corporate taxes and workmen's compensation insurance rates have recently doubled. DeVito's president has assigned you the task of preparing an economic analysis and making a recommendation about whether to move the company's entire operation to Missouri. The president is slightly in favor of such a move because Missouri is his boyhood home, and he also owns a fishing lodge there. You have just completed building your dream house, moved in, and sodded the lawn. Your children are all doing well in school and sports and, along with your spouse, want no part of a move to Missouri. If the company does move, so will you because your town is a one-industry community, and you and your spouse will have to move to have employment. Moving when everyone else does will cause you to take a big loss on the sale of your house. The same hardships will be suffered by your coworkers, and the town will be devastated. In compiling the costs of moving versus not moving, you have latitude in the assumptions you make, the estimates you compute, and the discount rates and time periods you project. You are in a position to influence the decision singlehandedly. Instructions
(a) Who are the stakeholders in this situation?
(b) What are the ethical issues in this situation?
(c) What would you do in this situation?
What makes a social science explanation different from methodological individualism? How would social scientists explain why American men wear short hair, while women wear their hair long? How would a methodological individualist explain this?
Public health information can be broadcast at a cost of $100. Public health information is a pure public good, in that many people can use the information simultaneously and preventing people from using the information is very difficult. One group of..
Consider an infinitely repeated Cournot duopoly with discount factor ? 0, and inverse demand functions p(Q)=a-bQ, with a>c and b>0. Find the condition on the discount factor ?, for which the two firms could successfully collude over the monopoly outp..
Which of the government policies below is not likely to encourage per capita economic growth.
Consider we wanted to know how many trips versus dinners out you could purchase. If you were told that X = number of trips and Y = the number of dinners out and you were given the following budget information; What is the meaning of the slope of the..
q.suppose that the us government determines that cigarette smoking creates social cost not reflected in the current
Suppose customers are distributed on a one---directional path (e.g., to the east) as follows. A company has to deliver a unit of its good to each customer and incurs a cost of $1 per unit and mile. Each unit needs to delivered separately. Where is t..
A license to sell another's products or to use another's name in business is called a
Suppose you own a bookstore where you currently sell 25 John Grisham mystery novels per day at a price of $38 per day. However, if you were to reduce the price to $27, then you would d sell 31 John Grisham mystery novels per day. Using the midpoint f..
Using the concept of opportunity cost also PPF explain the phrase affluence tomorrow requires sacrifices today
Demand curve is P=41-Q/100 cost of labor is L= 10. The profit in function is Q=10L. What is the marginal revenue product?
A machine that has been used for one year has a salvage value of $10,000 now , which will drop by $2000 per year. The maintenance costs for the next 4 years are $1250, $1450, $1750 and $2250. Determine the marginal cost to extend service for each of ..
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