= Consider the following principal agent problem with adverse selection. A firm faces a worker who may be one of two types, with equal probabilities. The firm's profits from a type i worker are given by Ti ei Si, i 1, 2, where e; is the effort supplied by a type i worker and s; is the payment to a type i worker. The cost function of the more productive worker (type 1) is given by c₁ = el and the cost function of the less productive worker (type 2) is given by c₂ = 2e2. The utility function of a worker of type i is given by: ui = si' c; and his opportunity cost utility is u = 0. Find the solution to the firm's problem (assuming that effort is observable and contractible). 1/2 =

Answer the question, using the 3 step approach? 9. Forecast the effects of changing market conditions when there is an economic downturn and employers need fewer workers.

Does the same principal-agent conflict exist when people donate other items such as bone marrow, blood, eggs, sperm?  Please explain why or why not.

Toilet paper flew off the shelves in the early period of the COVID-19 pandemic.  Many have been baffled by this phenomenon but we have to investigate the microeconomics of this situation. Propose economic strategies to prevent another toilet paper crises.

Answer the following: 3. What is meant by the term “other customers” and why is their influence so much greater for services compared to goods? 4. Why do consumers of service perceive higher levels of risk associated with their purchase compared to goods purchase. 5. What are the marketing challenges that arose as a result of the intangibility of services? Discuss in detail.

31) People respond to incentives A) by ignoring negative incentives and responding to positive incentives only. B) only when they are irrational. C) by calculating their individual costs and benefits and determining which is greater. D) when they have low incomes. 32) The threat of a large fine for failure to pay income taxes is an example of A) the excessive power of the Internal Revenue Service. B) the ineffectiveness of incentives to get people to pay their taxes. C) a negative incentive to get all people to pay taxes. D) people failing to consider all the benefits the government provides them. 33) A politician says that the government should tax behavior they want less of and subsidize behavior they want more of. This is an example of A) cynical behavior in modern democracies. B) failing to consider the alternatives available to the government. C) a concern that people are not rational when they make decisions. D) using incentives to alter…

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Question 18: Economic theory attempts to predict the outcomes and impacts of a behavior with an assumed set of conditions.   A True B False

6-1- What is consumer behavior? Why is it important for marketers to understand consumer behavior?6-2- Explain habitual decision making, limited problem solving, and extended problem solving. What is the role of perceived risk in the decision process?6-3- Explain the steps in the consumer decision-making process?6-4- What is perception? Explain the three parts of the perception process: exposure, attention, and interpretation.6-5- Describe Maslow’s hierarchy of needs as it relates to motivation. How does gamification satisfy some of these needs?6-43- What is the decision facing Electrolux?6-44- What factors are important in understanding this decision situation?6-45- What are the alternatives?6-46- What decisions(s) do you recommend?6-47- What are some ways to implement your recommendation?

One of the principles of economics is that people respond to incentives. Using this principle, discuss how a tax imposed on people who refuse to get vaccinated against COVID-19 virus affects the national level of vaccination coverage.