Tài liệu Microeconomics for MBAs 27 docx

... There are two formulas for elasticity, one for use at specific points on the curve and one for measuring average elasticity between two points, called arc elasticity. The formula for point elasticity, ... prices are not always the best policy. For example, if a firm sells fifty units of a product for $1, its total revenue (consumers’ total expenditures) for the product will...

Ngày tải lên: 21/01/2014, 22:20

... mathematical formula for computing the present value of future costs or benefits received one year from now is PV = [1/(1 + r)] f, where PV stands for present value, r for the rater of interest, and f for ... benefits in a graph. 10. Henry Ford more than doubled his workers’ wages. Did worker real income double by Ford’s pay policy? Reflecting on the general principles behind Ford’...

Ngày tải lên: 15/12/2013, 10:15

... on that information. People cannot assimilate all the information they need to make rational choices, however. People do lack information, and they could make better choices if information ... payments and fringe benefits for unionized retirees at the same time they negotiate the pay packages for the current workers. Even when retirement benefits are fixed for retirees’ lives, the...

Ngày tải lên: 15/12/2013, 10:15

... concern for the poor, who may be unable to afford the information necessary to make an informed choice. The poor may also be the least capable of understanding technical product information, ... The market demand for information, like the market demand for protective bumpers, will not fully reflect its social benefits. Because of external benefits, the quantity of information produc...

Ngày tải lên: 15/12/2013, 10:15

... tried, which forced the team members to think competitively, had median initial effort levels on par with the initial effort levels observed under forcing contracts. However, the effort level ... that the history of the team performance matters: the higher the team performance at the start, the greater the team performance thereafter (although the effort level might be declining over ......

Ngày tải lên: 24/12/2013, 17:15

... uniform amount for each worker and in which the provision of the fringe has no impact on worker productivity, but increases the value of work and increases the supply of Chapter 6. Reasons for ... percentage of monthly sales, for the right to use a brand name and/or trademark for example, the name “McDonalds” along with the “golden arches.” Chapter 6. Reasons for Firm Incenti...

Ngày tải lên: 24/12/2013, 17:15

... economic cost of reducing pollution to ten units is $9,300; $1,500 for firm A. $800 for B, $3,000 each for C and D, and $1,000 for E. This figure is Chapter 7 Market Failures: External Costs ... a fully informed buyer would be willing to pay for them is $3,000, with the other 25 percent worth $5,000. This means that a buyer with no information on the condition of a car for sa...

Ngày tải lên: 24/12/2013, 17:15

... equity come in a variety of forms. Common and preferred stock are the two major divisions of equity. Debt can take a form that has the “look and feel” of equity. For example, the much-maligned ... categories of finance (subject to much greater variation in form than we are able to consider here) available to owners. Owners need to search for an “optimum combination,” given the feature...

Ngày tải lên: 21/01/2014, 22:20

... profit incentive for expansion. If it expands before other firms, its lower average total cost will allow it to make greater profits for a short period of time. Consider Figure 11.9, for instance. ... others are going to do, for one function of the market is to generate the pricing and output information people need to interact with one another. In a world of imperfect informati...

Ngày tải lên: 26/01/2014, 18:20

... same as before and are just as willing to work as before) once the additional vacation is provided: 1) the employer is willing to hire the same number of workers as before if the cost for each ... brackets and with greater demand for medical care will want more of their compensation in the form of untaxed fringe benefits such as health insurance. Therefore we can expect employers who...

Ngày tải lên: 26/01/2014, 18:20