A minimum wage is introduced into an experimental labor market characterized by gift exchange. In the experiment‚ subjects are randomly divided into two groups‚ including manager group and employees group‚ with ten subjects in each group. In all periods each manager was matched anonymously with one employee no more than twice and never re-matched in two consecutive periods. In each period‚ the manager makes an individual wage offer to his matched employee and wage offers were written directly on
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Chapter 1 Thinking as an economist Answers to review questions 1 They probably mean that‚ given the competing demands on their limited resources‚ there are other things (a holiday‚ private school fees‚ a new computer) that they choose to spend their income on rather than a plasma screen television. 2 Your friend probably means that your tennis game will improve faster if you take individual lessons instead of group lessons. However‚ individual lessons are also more costly than group lessons‚ so
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2010/2011 EC1301 Principles of Economics Semester II Tutorial 3 Short Answer Questions PRODUCTION TECHNOLOGY AND COST 1. Consider the paddle production example shown in Table 23.2 (see Lecture 3). Compute the short-run average cost for 10 paddles with the following changes. a) Your opportunity cost of work time triples‚ from $50 to 150. b) The interest rate for invested funds is cut in half‚ from 10 to 5 percent. c) Labor productivity (the quantity
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Course Description This course applies economic concepts to make management decisions. Students employ the concepts of scarce resources and opportunity costs to perform economic analysis. Other topics include supply and demand‚ profit maximization‚ market structure‚ macroeconomic measurement‚ money‚ trade‚ and foreign exchange. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: •
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Raggs‚ Ltd.‚ a clothing firm‚ determines that the marginal profit and marginal cost are given by ‚ . Find the total revenue if R(0) = 3000. 1‚ The distance profit is given by the definiteinte gral of (P’(x)) Px=P’x=150-0.5xdx =150x-0.25x2+CThe distance cost is given by the definiteinte gral of (C’(x)) Cx=C’x=4000+0.25x2dx =4000x-112x3+CWe have the total revenue is R(x) = P(x) + C(x) Cx=150x-0.25x2+C+4000x+112x3+C =112x3-0
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Discuss And Illustrate The Economic Justification For Establishing A Warehouse Storage has always been an important aspect of economic development. For manufacturers‚ strategic warehousing offered a way to reduce holding or dwell time of materials and parts. On the outbound side of manufacturing‚ warehouses can be used to create product assortments for customer shipment. An important charge in warehousing is maximum flexibility. Ideally a warehouse will simultaneously provide economic and service
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1 Monopoly Why Monopolies Arise? Monopoly is a rm that is the sole seller of a product without close substitutes. The fundamental cause of monopoly is barriers to entry: A monopoly remains the only seller in its market because other rms cannot enter the market and compete with it. Barriers to entry have three main sources: 1. Monopoly Resources. A key resource is owned by a single rm. Example: The DeBeers Diamond Monopoly|this rm controls about 80 percent of the diamonds in the world. 2. Government-Created
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4.) A firm contemplating an advertising campaign that promises to yield $120 one year from now for $100 spent now. Explain why the firm should not undertake the advertising campaign. Because of the Time Value of Money; the $120 might have a Present Value that is lower than the $100 spent now‚ therefore the campaign would have a negative Net Present Value and should not be undertaken. 5.) Determine which of two investment projects a manager should choose if the discount rate of the firm is 10
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The Global-Local Dilemma: Foundations of International Strategic Management‚ Ethics and Social Responsibility What is meant by Globalization? Form 5 Groups‚ discuss the questions below for 30 Minutes in your group; each group presents its findings to the class. What is Globalization? What is being “globalized”? Establish a ranking of degree of globalization. Develop a definition and discuss your definition in terms of the factors below Advantages‚ Disadvantages‚ Opportunities‚ Threats For participating
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In 1983/84‚ the average amount of household rubbish per person per year in England was 397 kilograms (Defra‚ 2007)‚ in the following years‚ this increased and by 2006/07‚ this figure had grown by 28 percent to 508 kilograms. This trend has been explained by the growing affluence of the general person and their greater amount of disposable income‚ which is then being spent on luxury products. As a result‚ more and more waste is being generated each year; this essay will explore the arguments around
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