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24 Aug 2018

29. Suppose that Thomas and Sarah ask their employer to settle their dispute. If the employer sides with Thomas and gives him the right to smoke at work, then which of the following is true? (a) Thomas and Sarah would each have been just as happy if the employer had sided with Sarah instead of Thomas. (b) Thomas and Sarah would both be better-off if they could agree on an amount between $25 and $35 that Thomas could pay Sarah to continue Smoking. (c) Thomas and Sarah would both be better-off if they could agree on an amount between $25 and $35 that Sarah could pay him to not smoke. (d) The socially optimal outcome cannot be obtained because the employer sided with the wrong party.

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Reid Wolff
Reid WolffLv2
27 Aug 2018
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Related questions

1)

Which of the following statements must be true in a game theory situation that results in a prisoners' dilemma?

Neither player has a dominant strategy in this game.

Neither player has an incentive to deviate unilaterally from the prisoners' dilemma outcome.

Both players could achieve a better outcome if they successfully collude.

a) Only i is true

b) Only iii is true

c) Only ii and iii are true

d) All three statements are true

2)

Carlise and Mary are the only two editors of mystery novels in the city of Readville. If Carlise and Mary collude to earn more profits, they would:

a) each reduce the number of books published and raise prices.

b) each reduce the number of books published and lower prices.

c) each increase the number of books published and raise prices.

d) each increase the number of books published and lower prices.

3)

Suppose that Rich and Sheri each own the two largest helicopter tour companies at the Grand Canyon. If each uses a pricing strategy that leads to a prisoner’s dilemma, what would be the result?

a) Both Rich and Sheri would earn a lot of profits.

b) Rich and Sheri would be better off by not cooperating with each other.

c) Tourists would end up paying a lot more for helicopter tours.

d) Tourists would end up getting great deals for helicopter tours.

The microeconomic market structure I would like my business to be in is a monopoly in the utility industry. Using this business model to make the most amount of money, over a long period of time, without regard to service, quality, or competition could be interesting. Creating a company that could produce residual income with little effort is very appealing to the owner or its shareholders. Economies of scale will help the consumer save money when adjustments to internal costs are decreased. Once a monopoly was established you as a business owner could enjoy the benefits of no competition, depending on the product you may be able to compete internationally. The downside for consumers is with the limiting of competition there could be a limit on innovation and this could affect quality for the consumer. Depending on where an individual is in their life they may be in business to strictly make money with little regard for everyone else, if this is the case then a monopoly is the right type of business to have.

It is important to note that individuals enter business for different reason all are generally to make money but some individuals do it for other reasons as well. They may start a business in a rural area as a farmer and due to the fact that they sell fruit or vegetables would find themselves in a perfect competition market structure. This market is fairly easy to enter, there is lots of competition and the products are identical to each other between competitors. Others may start a restaurant business because they like food, they like providing and making people happy and they like the day to day interactions with people. This business is just fine and would fit into the monopolistic competition structure. This business is different from the monopoly structured business because it doesn't run itself, there is lots of competition, quality & price must always be considered, and if customers are not happy they can choose a different option.

I need a peer reply for this discussion of at least 200 words.

3. Over the past 35 years, an increasing number of mothers have gone back to work relatively quickly after giving birth. Consider a labor market where a worker’s wage is a function of his or her years of education past the compulsory level (E), work experience (X), and years of tenure with their current employer (T). Suppose the relationships between wages, education, experience, and tenure for males (M) and females (F) can be represented by the equations

WM = 3 + 0.5E + 0.4X + 0.2T

and

WF = 3 + 0.4E + 0.3X + 0.3T.

On average, E = 4, X =20, and T = 8 for men, while for women the averages are E = 4, X = 14, and T = 4.

A) Find the average wage of men and women. What is the ratio of female to male wages? What is the gap between women and men’s wages in percentage terms?

B) What wage would women earn if they had the same pre-market characteristics as men on average? What would be the ratio of women’s to men’s wages?

C) Express the amount of current wage discrimination in percentage terms.

Suppose in the analysis that years of tenure are either unmeasurable or unobservable to the researcher. As a result, the analysis produces the following wage equations.

WM = 4.6 + 0.5E + 0.4X

and

WF = 4.2 + 0.4E + 0.3X.

D) Find the average wage of men and women. What is the ratio of female to male wages? What is the gap between women and men’s wages in percentage terms?

E) What wage would women earn if they had the same pre-market characteristics as men on average? What would be the ratio of women’s to men’s wages?

F) Express the amount of current wage discrimination in percentage terms.

G) Does this (failing to include tenure in the model) overstate or understate the effects of gender discrimination?

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