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Ugo [173]
2 years ago
10

. Understanding how shirking decreases team output Caroline sells bottled water from a small stand by the beach. On the last day

of summer vacation, many people are on the beach, and Caroline realizes that she can make a lot more money this day if she hires someone to walk up and down the beach selling water. She finds a college student named Antonio and makes him the following offer: They'll each sell water all day and split their earnings (revenue minus the cost of water) equally at the end of the day. Caroline knows that if they both work hard, Antonio will earn $90 on the beach and Caroline will earn $180 at her stand, so they will each take home half of their total revenue: . If Antonio shirks, he'll generate only $50 in earnings. Caroline does not know that Antonio estimates his personal cost (or disutility) of working hard as opposed to shirking at $25.
Once out of Caroline's sight, Antonio faces a dilemma: work hard (put in full effort) or shirk (put in low effort).

In terms of Antonio's total utility, it is better for him to (shirk or work hard?)

Taking into account the loss in utility that working hard brings to Antonio, Caroline and Antonio together (are/ are not) ff if Antonio works hard instead of shirking.

Caroline knows Antonio will shirk if unsupervised. She considers hiring her good friend Carrie, who happens to be free on that day, to keep an eye on Antonio. The most Caroline should be willing to pay Carrie to supervise Antonio, assuming supervision is sufficient to encourage Antonio to work hard, is (25, 20, 45, 15)

Caroline knows Antonio will shirk if unsupervised, but she could not find a reliable person to watch him. Which of the following arrangements will ensure that Antonio works hard without making Caroline any worse off than she is when Antonio shirks?

Allow Antonio to keep 73% of the revenue from the bottles of water he sells instead of 50%

Make Antonio promise to work hard Pay Antonio $70, regardless of how many bottles of water he sells

Allow Antonio to keep 70% of the revenue from the bottles of water he sells instead of 50%
Business
1 answer:
podryga [215]2 years ago
8 0

Answer:

Check the explanation

Explanation:

a) In terms of Antonio's total utility, its worse for him to work.

Increase in income from shirking = $60/2 = $30

Increase in income from working = $110/2 - $30 = $25

b) Taking into account the loss in utility that working hard brings to Antonio, Caroline and Antonio together are not better off Antonio shirks instead of working hard.

Increase in combined income from shirking = $60

Increase in combined income from working = $110 - $30 = 80

c) Caroline will be willing to pay carry at most $25 yo Carrie.

Increase in Caroline's income from working vs shirking =( $110 - $60)/2 = $25

d) Allow Antonio to keep 75% of the revenue from the bottles of water he sells instead of 50%

Explanation:

Antonio

Increase in income from shirking = $60 x .75 = $45

Increase in income from working =( $110 x .75) - $30 = $52.5

Hence, Antonio would have incentive to work hard.

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"A customer owns 200 shares of ABC, purchased 2 years ago at $50 per share. The current market value of ABC stock is $60 per sha
kirza4 [7]

Answer: The donor may incur a gift tax liability. Also, the cost basis will be $50 per share to the recipient of the gift.

Explanation:

From the question, we are informed that a customer owns 200 shares of ABC, that were bought 2 years ago at $50 per share and that the current market value of ABC stock is $60 per share.

If the customer gifts the stock to his son, the result is the donor may incur a gift tax liability. Also, the cost basis will be $50 per share to the recipient of the gift.

7 0
3 years ago
Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpet
Usimov [2.4K]

Answer: please find the explanation column for answers

Explanation:

journal entry to record the sales transaction of a merchandising company:

Date        Account                           Debit           Credit

Apr 1      Account receivables        $5,400

                   Sales                                                   $5,400

To record cost of goods sold

 Apr 1           Cost of merchandise sold       $3,240

          Merchandise inventory                                   $3,240

2. To record sales  return of goods.

Date        Account                           Debit           Credit

 Apr 4             Sales Return       $620.00  

  Account Receivable                                $620.00

Cost of merchandised returned

Apr 4  Merchandise Inventory        $372.00  

 Cost of Goods Sold                                     $372.00

3.To Record Sales made from merchandise

Date        Account                           Debit           Credit

Apr 8      Account Receivable $2,200.00  

                     Sales                                             $2,200.00

To Record cost of merchandise Sold

Apr 8    Cost of Goods Sold             $1,540.00  

Merchandise Inventory                                        $1,540.00

 

4.Journal to record payment received from sales of merchandise

Date        Account                           Debit                Credit

Apr 11     Cash                   $4,780.00  

Account receivable                                            $4,780.00

Calculation

Amount due from Apr 1 st sale less than return on April 4 =Account receivables - Sales Return=   $5,400- $620=$4,780.00

4 0
3 years ago
David's marketing research returned the finding that customers were staying away from his bookstore because of a lack of service
snow_tiger [21]

Answer:

The knowledge gap can be filled with a knowledge management strategy. It involves identifying the knowledge gap and vulnerabilities and setting strategies for each of these gaps. There are three types of gaps in strategic management: Knowledge gap, strategic gap, Relations gap. The knowledge gap occurs when the company doesn't know what it needs to know. similarly, David lacks the knowledge that the customers were staying away from his shop because of the lack of services.

6 0
2 years ago
By definition, imports are Group of answer choices people who work in foreign countries. limits placed on the quantity of goods
Naddik [55]

Answer:

goods produced abroad and sold domestically.

Explanation:

Exports are goods produced in the domestic economy and sold abroad.

Quotas limits placed on the quantity of goods leaving a country.

Countries trade goods for which they have comparative advantage and not absolute advantage.

I hope my answer helps you

5 0
3 years ago
When a proposed merger between two companies is reviewed by the government, the relevant market is defined by ________.
sukhopar [10]

Answer:

whether or not there are close substitutes for the products of the two firms

Explanation:

The law watches closely for mergers that actively seek to inhibit or totally annihilate competition in the market which will be harmful for consumers. Mergers such as horizontal mergers, vertical mergers tend to bring about a monopoly whereby sellers aim to coordinate in a such a way that there is an agreement amongst them and profit is ensured while market becomes less efficient.

3 0
3 years ago
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