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Q. If a firm faces a shortage of workers with very special skills, it may decide to undertake necessary training itself. if on the other hand it faces a shortage of unskilled workers, it may well off a small wage increase in order to obtain the extra labour. in the first case it is responding to an increase in demand for labor by attempting to shift the supply curve. in the second case it is merely allowing a movement allong the supply curve.a. use a diagram to illustrate each case.b. outline reasons why the marginal revenue product differs between workers in different jobs.
Illustrate what are the pros and cons of using expansionary and contractionary fiscal policy tools under the following scenarios: depression, recession, and robust economic growth.
You are to consider pricing separately, pure bundling, and mixed bundling. Without computations, which pricing policy from above would you recommend. Please explain why.
Suppose a consumer's preferences can be described. Derive the customer's marginal rate of substitution at the point.
And in this market there are two firms with MC=AV= $10. Perfect competition price, quantity, and consumer surplus?
Suppose the club did NOT charge a membership fee: explain how much money would the family spend on food? How much food would the family buy?
Your organization is considering offering a flexible benefit plan but has been advised that it could create a higher risk for adverse selection.
If the price of soda is $1 every can, Elucidate how many sodas will the consumer purchase in a typical month.
How versus simply ordering each farm to reduce pesticide use to 40% of current levels under threat of heavy fines for non-compliance.
Can you find a Nash equilibrium in pure strategies that is not efficient. Find the sub game perfect equilibrium as a function.
What do you need to do to handle crisis. SLook at mistaken assumptions described. Why do such assumptions arise, and what can be done to overcome se biases.
What is the amount of excess reserves in this commercial banking system? What is the maximum amount the banking system might lend?
Demonstrate the impact of a government price control set at P = $10. Demonstrate by number and in the graph. Discuss your answer.
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