Suppose you are a risk-neutral manager attempting to hire a new sales manager. All of the workers in the market have the same ability to manage and sell, but they differ with respect to the wage at which they are willing to work for your company. The market for sales managers is composed of two types of individuals: 35 percent are willing to work for $50,000 and 65 percent are willing to work for $75,000. The first interviewee is only willing to work for $75,000. The expected benefit from an additional search is:
A. $26,250.
B. $8,750.
C. $16,250.
D. $32,500.
Answer: B
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For health care, the perceived marginal benefit ________ the marginal social benefit
A) is less than B) is greater than C) is equal to D) cannot be compared to
What did Robert Gilpin mean when he wrote that modern realists know little about international politics that Thucydides did not know in the fifth century BCE?
a. Compared to those times, the twentieth century had been a revolutionary period. b. The world still revolved around political ideologies, theories, and arguments. c. Much had changed, but the underlying nature of international politics had not changed. d. Modern realists had not advanced the body of knowledge in political science very much.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth. B. a change in society's preferences for motorcycles versus hybrid cars. C. a reduction in unemployment. D. an improvement in technology.
Refer to the information provided in Table 14.3 below to answer the question that follows. Table 14.3B's Strategy ?AdvertiseDon't Advertise??A's profit $75 millionA's profit $200 million?AdvertiseB's profit $75 millionB's profit $50 millionA's Strategy????Don'tA's profit $50 millionA's profit $100 million?AdvertiseB's profit $200 millionB's profit $100 millionRefer to Table 14.3. Firm A?s dominant strategy is
A. to not advertise. B. to advertise. C. dependent on what Firm B does. D. indeterminate from this information, as no information is provided on Firm A?s risk preference.