Microeconomics for MBAs 54
Microeconomics for MBAs 54
... one form of which is using the powers of their office to appoint board members who are willing to go along with pay increases for the executives. This form of overpayment can be disparaged for ... simply that of setting a compensation package for executives that is, for example, heavily weighted toward rewarding executives for their companies’ performance, whether measured by the bo...
Microeconomics for MBAs 46
... percent of the workforce, and were typically far less than that. Also, it was estimated that the probability of being laid off was 70 percent higher for white-collar workers than for blue-collar ... offered more for the corporation’s stock than the current price. The first bidder is not necessarily the one best able to improve the performance of the target corporation, and therefore the...
Microeconomics for MBAs 47
... was re-controlled in 1984 for two more years. Starting January 1, 1985, all gas discovered after April 20, 1977 was deregulated, while gas discovered before this date was for the most part—not deregulated. ... securities by corporations and disclosure of information relating to those issuances. The commission has five members, who are appointed by the president for terms of five years. I...
Microeconomics for MBAs 48
... explained as an indirect form of taxation—in the sense that taxation is the government’s means of extracting money to pay for what are viewed as public goods and services. For example, until 1978, ... services and drugs, where the need for regulation has seldom been challenged, its value to the consumer is now being questioned. Does regulation affect the competitive performance of an in...
Microeconomics for MBAs 60
... process for prices in general. As U.S. demand for foreign goods rises, the demand curve for francs shifts outward from D 1 to D 2 , shifting the equilibrium from E 1 to E 2 . As foreign demand for ... more foreign imports, both directly and in the form of domestic goods that incorporate foreign parts or materials. Either way, an increase in real incomes leads to an increase in the dem...
Microeconomics for MBAs 49
... abusive customers can make work a form of “hell” for the workers. If forced to take excessive abuse, the workers would, no doubt, demand higher wages to compensate them for this abuse. At some point, ... prefer and be willing to pay more for the second. This situation suggests what looks like a profit opportunity for one of the hotel owners; establish a reputation for catering to th...
Microeconomics for MBAs 50
... a demand for the products and services they offer. The greater the demand for the products and the greater the demand for the labor needed to produce it -- and the greater the demand for a given ... greater for jobs offering non- monetary benefits—S 2 rather than S 1 . Given a constant demand for labor, the wage rate will be W 2 for workers who do not receive nonmonetary benefit...
Microeconomics for MBAs 1
... offered in different bungalows. A priest, for example, found that he could exchange a pack of cigarettes for a pound of cheese in one bungalow, trade the cheese for a pack and a half of cigarettes ... their holdings of cigarettes, prices fell. Radford saw a form of social order emerging in these spontaneous, voluntary, and completely undirected efforts. Even in this unlikely environment...
Microeconomics for MBAs 2
... than 2 papayas for a coconut; Harry would be better off if he could give up fewer than 4 papayas for a coconut. If, for example, they agree to trade at the exchange rate of 1 coconut for 3 papayas, ... enforcer, such as the police and courts, and (2) the specification of rights in a legally binding “social contract,” meaning that a third-party enforcer is established. Most of what we...
Microeconomics for MBAs 51
... general and straightforward rule for organizing much production: Give workers a direct detectable stake in firm revenues or profits in order to raise revenues and profits. Pay for performance. One ... cheaper for me to continue using migrant help for a few more years, but mechanization is the trend of the future. And no matter what kind of housing I provide I’m going to be criticized...