Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Smith & Co., a well-known producer of hand tools, wishes to hire a researcher to speed the development of the next generation of left-handed screwdrivers. If the researcher works hard, there is an 80% chance that she will make the crucial breakthrough and allow her firm to earn $50,000 in revenues and only a 20% chance that she'll make no breakthrough and earn the firm no additional revenue. If the researcher shirks her duties, there is only a 30% chance that she'll be able to make the breakthrough.
a) If researchers can earn $20,000 in other jobs, what contract should Smith & Co. offer to a researcher? Assume that the hard effort by a researcher is equivalent to a cost of $10,000 and shirking is equivalent to a cost of $0. Also assume that Smith & Co. cannot observe the effort level of the researcher and that there is no cost of effort in the other jobs.
b) If researchers can earn $45,000 in other jobs, what is the optimal contract that Smith & Co. should offer?
c) What is the maximum amount that researchers can earn in outside jobs such that Smith & Co. would still find it profitable to hire a researcher?
What are the two main characteristics of a pure public good (for example, national defense)? How is this different from private goods?
now suppose that tastes in art change, and art collectors decide that mona lisa is not such a great painting after all. draw a new diagram showing the effect of this change in tastes on the market for the mona lisa.
If the desired reserve ratio goes down and banks take money out of reserve and put it into loans, doesn't that mean that the money multiplier comes into effect, affecting the money supply and also the total deposits?
I have a website where I offer cash rebates for purchasing stuff. For instance, if someone purchases a pair of shoes, I give them a $10 cash rebate.
1. if there is no shock and yet the economy in the sr has an excess supply es of goods and an excess demand ed for
social problem where free marketplace are not allowed to function and describe how free market features could be introduced to help alleviate the problem.
Utilize these determinants in judging either demand for every of the following products is elastic or inelastic.
Describe the dimensions of quality from micro- and macro-perspectives. What are the different formats or models and applications of quality? Discuss the top three in your opinion.
What are some of the issues economists study, and why is economics often called "the science of choice"? What are the foci of inquiry in microeconomics and macroeconomics respectively?
look up for the numbers of the M1, M2 and M3 monetary aggregates in the European central bank euro area statistic for the most recent last-year period since the outburst of the global financial crisis.
Country risk and currency risk are unique to international lending. In this context, please, discuss why country risk and currency risks are unique to international lending?
What is the current unemployment rate? (hint: the update on the unemployment rate is usually released the first friday of each month) Do you think this unemployment rate is generally considered to be above, below or equal to NAIRU?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd