subject
Business, 25.11.2019 20:31 genyjoannerubiera

Acompany is considering building a new factory. the factory will cost c to build. to operate, the factory requires 100 workers. once operating, it will generate p profits. if the company builds the factory and hires workers at a wage w it makes a payoff of: p-100w - c. if the company builds a factory but fails to hire workers, it makes a payoff of ( negative c (i. e. -c). if it doesn't build the factory, it makes 0 . the prospective workers currently have jobs that pay a wage of v. the worker's payoff is equal to their wages (either at the new factory or their current jobs).a) suppose the worker can be hired at their current wage (w=v). for what values of c will the firm build the factory? b) after the factory is built, the worker's demand that the firm accede to their wage demand or not have the factory operate (and thus loose the c investment). what demand will the workers make? anticipating this offer, what values of c will the firm build the factory?

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 13:30
Jose recently died with a probate estate of $900,000. he was predeceased by his wife, guadalupe, and his daughter, lucy. he has two surviving children, pete and fred. jose was also survived by eight grandchildren, pete’s three children, naomi, daniel, nick; fred’s three children, heather, chris and steve; and lucy’s two children, david and rachel. jose’s will states the following “i leave everything to my three children. if any of my children shall predecease me then i leave their share to their heirs, per stirpes.” which of the following statements is correct? (a) under jose’s will rachel will receive $150,000. (b) under jose’s will chris will receive $150,000. (c) under jose’s will nick will receive $100,000. (d) under jose’s will pete will receive $200,000.
Answers: 1
question
Business, 22.06.2019 14:00
Why is efficiency an important economic goal?
Answers: 2
question
Business, 22.06.2019 16:50
Atrough in the business cycle occurs when
Answers: 1
question
Business, 22.06.2019 19:20
Why is following an unrelated diversification strategy especially advantageous in an emerging economy? a. it allows the conglomerate to overcome institutional weaknesses in emerging economies. b. it allows the conglomerate to form a monopoly in emerging economies. c. it allows the conglomerate to use well-defined legal systems in emerging economies. d. it allows the conglomerate to take advantage of strong capital markets in emerging economies.
Answers: 1
You know the right answer?
Acompany is considering building a new factory. the factory will cost c to build. to operate, the fa...
Questions
question
Biology, 22.07.2019 00:32
question
Mathematics, 22.07.2019 00:32