Two players: The employee (Raquel) and the employer (Vera). Raquel has to choose whether to pursue training that costs $1,000 to herself or not.
Vera has to decide whether to pay a fixed wage of $10,000 to Raquel or share the revenues of the enterprise 50:50 with Raquel.
The output is positively affected by both training and revenue sharing. Indeed, with no training and a fixed wage total output is $20,000, while if either training or profit sharing is implemented the output rises to $22,000. If both training and revenue sharing are implemented the output is $25,000.
a. Construct the pay-off matrix.
b. Is there a dominant strategy for Raquel? Why or why not?
c. Is there a dominant strategy for Vera? Why or why not?
d. Find the Nash equilibrium.

Minneapolis federal reserve bank economist edward prescott estimates the elasticity of the u.s. labor supply to be 3. given this elasticity, what would be the impact of funding the social security program with tax increases on the number of hours worked and on the amount of taxes collected to fund social security?

You are frustrated to find that the only way to contact the customer service department is to make a phone call. the number listed would result in long distance charges to your phone bill. which issue should be addressed by the company to keep its crm in line with your expectations?

Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.