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After two quarters of increasing levels of production, the CEO of Canadian Fabrication & Design was upset to learn that, during this time of expansion, productivity of the newly hired sheet metal workers declined with each new worker hired. Believing that the new workers were either lazy or inefficiently supervised (or possibly both), the CEO instructed the shop foreman to "crack down" on the new workers to bring their productivity levels up.
Explain carefully in terms of production theory why it might be that no amount of "cracking down" can increase worker productivity at CF&D. Provide an alternative to cracking down as a means of increasing the productivity of the sheet metal workers.
Assume that x1 and x2 can take any value (0,1,2,3,4,5). The payoff to student i is 10 - xi if she gets an A and 8 - xi if she gets a B, i = 1, 2. Derive the strategies that survive the iterative deletion of strictly dominated strategies.
Consider the impact of unemployment benefits on the labour market. How is a more generous unemployment benefit likely to affect wage setting, search effort among unemployed job searchers, and the rate of unemployment.
Illustrate what role does economics play in your personal and organizations decisions. Give an example of the role of economics in decision making.
Explain the factors and mechanisms of growth, explain how governments use monetary and fiscal policy to manage the economy and use technology and information resources to research issues in principles of economics.
Pk(price of one unit of capital)=1 tax rate=.15 Write the tax-adjusted user cost of capital as a function of the real interest rate(r). Also write the desired future capital stock and desired investment as functions of (r).
Consider the marketplace for personal computers. Suppose that the demand is stable: the demand curve doesn't change.
Elucidate how could this technological change contribute to ending bottlenecks and rush hour congestion. What are some of the problems that might develop with such a system.
Illustrate what will happen to the input prices wages (w) and rental rate of capital (r) after this change in technology.
Elucidate how these economic concepts can be used to address the firm's problems and opportunities.
Compute the growth rate of the dividend, g. (You can either compute the ROE*plowback ratio or compute the annual growth rate of dividends) e) Based on this information, what should the price of the stock be today using the constant-growth dividend ..
An investor wants to earn a yield of 9% from a 10,000 bond with a coupon rate of 6% payable semiannually. The bond's life is 10 years, and it was issued 4 years ago. The eighth payment will be made immediately after the purchase. What is the ma..
A new widget, with a service life of four years, would save $50,000. in production costs each year. Using a 12.00% nominal annual interest rate, determine the highest price that could be justified for the widget, i.e., determine the present valu..
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