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Suppose that Jenny receives higher pay at her workplace than her collages do, even though they perform essentially the same type of work. However, Jenny's productivity is about 25% higher than that of each of her colleagues. Which of the following wage concept can explain this given information? Check all that apply, A) The superstar phenomenon B) Human capital C) Discrimination D) Effort
Suppose the production function for pasta is Q = 4kl. What is the long-run optimal input combination when Q = 16 , r = 4 , and w = 36 ?
The main reason firms may exit a market is because of:
Assume the world has only the U.S. and Germany, and that trade between them is balanced such that neither runs a trade deficit nor surplus. If exchange rates now change such that the U.S. dollar becomes more expensive for Germans to buy (and all else..
In order to boost funding for the state of Florida or Mississippi, depending on where you are, each state has decided to start a daily drawing where people can purchase a ticket for $1 with a 3-digit number from 000-999. Why then do so many people pu..
Each of the following is considered a disadvantage of federalism for democracy EXCEPT
Governments often need to raise revenues to fund public projects like schools, road maintenance, parks, etc. One way governments raise revenue is to place taxes on the sale of certain goods. Suppose a government is debating whether to raise taxes on ..
Describe the dominant characteristics of the industry (military) in which your company operates, addressing the following questions: Who are your main competitors? Are they significant barriers to entry? What is your company’s market share? What is t..
Discuss the power of compound interest and why compounding makes it important for people to save and invest for retirement early in their working life rather than waiting until they are close to retirement.
The total fixed costs for manufacturing a product each month is $8,000. The variable cost per unit consists of direct labor, material and overhead. The labor will be based on the 25th unit and an 85% learning curve is expected to apply to the number ..
Determine its level of profit. (b) Suppose that a fixed costs increase to $75. Verify that this change in fixed costs does not affect the firm's optimal output.
A hedge fund currently has assets of $500 million. The annual fee structure of this fund consists of a fixed fee of 1% of portfolio assets plus a 20% incentive fee. Compute the fee that the manager will earn, in dollars, if the return on the fund in ..
What is the difference between economic profits and accounting profits, and how does this difference matter for actual business decisions?
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