Juanita is trying to convince the owner of a jewelry store to hire her. She argues that she could help the shop sell an addition
al three rings per day for a profit of $20 each. If the facts are not in dispute, but the owner does not hire her, then a. the wage rate must be < $60 per day. b. hiring Juanita would involve a negative marginal product. c. the wage rate must be more than $60 per day. d. the wage rate must be < $20 per day.
Additional sale due to Juanita = $20 [tex]\times[/tex/ 3 = $60 each day.
In this case additional revenue = $60 per day, thus the cost shall be less than $60 per day, this is with the basic assumption that all the fixed cost is recovered originally before Juanita's appointment, as now each variable cost has to be recovered, we have additional profit of $60 per day, so therefore cost shall not exceed additional revenue, as this will lead to loss, therefore her wage rate shall be less than $60 per day.
Agency problem is the issue rises when the agents fails to display appropriate interest of principles.This interest conflict usually occurs between the organisation's stakeholder and management.
In this situation,manger is the person who usually acts as the agent for providing best interest to the stakeholder to increase their wealth and benefit.But if failure in this case occurs , then conflict is experienced between both the parties.
<span>Harvey purchased 10 shares of mvc stock for = $100 per share </span><span>one year later he sold the 10 shares for = $130 a share </span>The price level increased in a year from = 140 to 147 <span>harvey's before-tax real capital gain = </span><span>$1,300 - $1,000(1.05) but he is to report a $300 gain on his income tax</span>
