In Q& A 7.2, suppose that Ann’s compensation, Y, is half of the firm’s profit minus $ 30,000: Y = π / 2 – 30,000. Will she still seek to maximize the firm’s profit?
Answer to relevant QuestionsA firm’s revenue varies with its output: R(q). Its manager’s income, Y, equals aR(q), where 0 6 a 6 1 is the manager’s share of the firm’s revenue. Use calculus to prove that maximizing aR(q) implies the same output ...Why are steps taken by corporate management to avoid takeovers often not in shareholders’ best interests? Which market structure best describes (a) airplane manufacturing, (b) electricians in a small town, (c) farms that grow tomatoes, and (d) cable television in a city? Why?Should a firm shut down if its revenue is R = $ 1,000 per week, a. Its variable cost is VC = $ 500, and its sunk fixed cost is F = $ 600? b. Its variable cost is VC = $ 1,001, and its sunk fixed cost F = $ 500? c. Its ...What is the short-run and long-run effect on firm and market equilibrium of the U. S. law requiring a firm to give its workers six months’ notice before it can shut down its plant?
Post your question