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Q. Suppose there are two types of workers: high ability and low ability. The training program costs $15000 per year for the high ability worker and $30001 for the low ability worker. The firm intends to pay $210000 to workers with y years of education, and $120000 to workers without a diploma. What is the range of y that would make this an effective screening mechanism? What value of y survives as a solution if all firms are competing for high ability workers?
Using an Edge worth Box, graph the initial allocation and draw the indifference curve for each consumer that runs through the initial allocation.
Evaluate the financial performance of the company using the information providedin scenario. Consider all the key drivers of performance, such as company profit or loss.
Compute the resulting utility if the population were on million higher and one million lower than the optimum.
Enterprises conduct business transactions with other enterprises for a number of economic, business and strategic motivations.
What is the equilibrium cost as well as equilibrium supply.
If the company has not paid dividends, discuss why think the company is not paying dividends or whether they should consider adopting a dividend policy.
Exportof goods and services to foreigners is $1 million and import of goods and services from foreigners is $1.5 million.
Despite this finding, the government mandates that new cars have air bags, rather than taxing their use. Is this policy a contradiction.
Explain why monopolistically competitive firms frequently prefer nonprice competition to price competition.
If the number of labor hours increases by 10% and the number of hours of capital used decreases by 10%, what is the percentage change in output.
Amalgamate the information you have gathered and tell the economic consulting firm which actions you think OPEC will take over the next year based on your answers.
Clarify what happened to the profit maximizing output rate when input costs were increased.
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