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Is there a difference between the moral hazard and principal-agent problems? If yes, explain the dif- ferences and give an example of a situation where one of them exists without the other. If there is no difference, argue this is one and the same problem.
Identify a PLC company that uses strategic management - this company may be prosperous, booming, in decline, or in economic difficulties.
"To sum up: politically speaking, it is insufficient to say that power and violence are not the same. Power and violence are opposites; where the one rules absolutely, the other is absent. Violence appears where power is in jeopardy, but left to its ..
Why does the government grant patents to new inventors? Think about new cancer drug research and new drug prices. Why does the government give monopoly power to utility companies?
Teresa likes to consume chocolate and yogurt. Her utility function is given by U(x,y) = x^0.5y^0.5 where x and y are the quantities of chocolate and yogurt she consumes. Suppose that her income is $10 and the initial prices for both of the goods is $..
The market basket utilized to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2 shirts also 2 pairs of pants.
In June 2008, the U.S. retail gas price jumped from $3 to $4 a gallon. This is a 33% increase in price from January 2008. During that time, the total quantity of gasoline purchased fell by 3%. Supplies of gasoline produced also decreased from 1 milli..
A firm has a production function represented by: q=L^(.75)K^(.25) Find a function for how much capital and labor a firm should hire to produce a given level of production in terms of the price of labor, w, and the price capital, r. Suppose w=15 and r..
Explain how much tax revenue does this tax create. Illustrate what proportion of the tax is borne by consumers.
Generational accounting techniques (recall Chapter 4) suggest that future income tax rates will be higher than current tax rates. How should this information affect the savings rate? How should it affect the relative appeal of Roth versus traditional..
Suppose that there is an exogenous unexpected decline in consumption spending by households. Use the IS-LM, AD-AS model to derive the short-run and long-run effects on i, P, and Y.
Using the sum-of-years digit method of depreciation, find the amount of depreciation to be charged off each year on an RV Camper purchased byan Account in Firm. The RV Camper has a cost of $95,000, and estimated life of 5 years, and a trade-in/scrap ..
Define income elasticity of demand with two examples for two types of goods? Explain how as a manager you can use the concept to your advantage.
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