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In business, there is a tension between the principals (stockholders) and agents (managers). The managers may choose policies that increase short-term profitability (and their bonuses) at the expense of long-term profitability. Describe why the same types of problems may exist in government as well, where elected officials are the agents and voters are the principals.
hat is your expected utility without insurance? Suppose you can buy insurance that will cover the medical expenses but not the foregone part of your salary. How much is an actuarially fair policy, and what is your expected utility if you buy it?
Determine the profit-maximizing prices both firms will charge. In addition, calculate the price-cost margin for each firm and indicate which has more pricing power and why.
What is the difference between the medium of exchange and the store of value? What is the difference between commodity money and fiat money?
You are given the following information about the personal computer (PC) industry: Find the NRP and the ERP. Show all calculations and formulas.
You're the absolute czar and head of union of 1,000 plumbers in Austin, Texas. You've the absolute power to set the wage at which the plumbers will work. You wished to achieve full employment at highest possible wage; (b) you wished to maximize the..
What is the cost of producing additional car when 50 cars are being produced? What is the cost of producing additional care when 150 cars are being produced?
Discuss the short-run movement toward equilibrium in the currency markets in a flexible exchange system.
Make an example of a comparative advantage model by 'choosing two countries and two products.
Illustrate the notion that people are rational respond to incentives consider an experiment conducted by researchers at St. Luke's Roosevelt Hospital in New York City.
You are the manager of a firm in a new industry. You have gotten the jump on the only other producer in the market.
Prepare a table/graph for inflation in "your country" (use North Korea for the country; if no data is available, use India) for about the latest ten year period for which you have data.
Finding the short run and long run profit maximizing price - quantity and number of firms in industry.
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