Sheila's Sports Shop is a very popular sporting goods store, which has a yearly revenue of the business herself. Her alternative employment options are to be a college swimming coach for $50,000 per year or a construction worker for $40,000 per year. Sheila spends $230,000 purchasing goods for resale to her customers. She also has four employees, who each earn $25,000 per year. Sheila owns the building that her Sports Shop is housed in and she could have rented it out for $20,000 per year. Sheila's costs for resources bought in the market equal اختر أحد الخيارات .a. $350,000 per year .b. $200,000 per year .c. $330,000 per year .d. $70,000 per year O O

Scenario 1:  Suppose you are a salesperson is a high end clothing store known for its personal service.  You receive a salary plus a commission equal to 10% of the sales/revenues that you sell.  The manager of your store informs you that prices of the clothing in your store will increase by 10%.  (1) Assuming everything else remains the same, would you be happy or sad about the price increase?  Explain why or why not. Scenario 2:  Suppose you are a salesperson at Macy’s,  a department store.  You receive a salary plus a commission equal to 10% of the sales/revenues that you sell. Macy’s informs you that price of the clothing in your store will increase by 10%.  (2) Assuming everything else remains the same, would you be happy or sad about the price increase?  Explain why or why not.

Problem 3: Labor Contracts. Suppose that Lionel Messi is negotiating a contract with FC Barcelona. Messi has an offer from Real Madrid for $20 million a year. If he signs with FC Barcelona, they will earn $90 million in revenue from the signing. FC Barcelona's next best option is to sign Cristiano Ronaldo. They would earn $70 million from signing Ronaldo and would pay him a contract of $10 million. Messi's bargaining power is w = a) What is the negotiated salary between Messi and FC Barcelona under Nash Bargain- ing? What is Messi's surplus and what is FC Barcelona's surplus? b) Due to an injury, FC Barcelona would only earn $50 million from signing Ronaldo but everything else remains the same. What is the negotiated salary between Messi and FC Barcelona under Nash Bargaining? What is Messi's surplus and what is FC Barcelona's surplus?

Suppose apartments are in four​ locations: Location​ A, Location​ B, Location​ C, and Location D. Location A is in the​ city, where your job is. Location B is 10 minutes farther from your job than Location A. Location C is 10 minutes farther from your job than Location​ B, and Location D is 10 minutes farther than Location C. In​ turn, similar apartments in Location B rent for ​$125 less per month than apartments in Location​ A, apartments in Location C rent for ​$125 less than in Location​ B, and apartments in Location D rent for ​$125 less than in Location C. Suppose the value of your time is ​$18 per hour and you work 21 days per​ month, with each day requiring a​ round-trip commute from your apartment to work. Part 2 For​ simplicity, assume rent and the opportunity cost of your time commuting to work are the only factors influencing the location in which to rent an apartment.

Rebecca's wage is $10 per hour, and she can work up to 60 hours per week. The table and the budget constraint graph show the trade-off that she faces between income and leisure in one week of potential work at this wage. Her manager raises her wage to $15 per hour. Change the graph below to illustrate her new income-leisure budget constraint. The line and the individual endpoints are movable. Assume that nothing else changes. Hours Leisure time Income ($) (hours) worked at $10/hour 0 200 400 600 0 20 40 60 60 40 20 0 Income ($) 1000 900 800 700 600 500 400 300 200 100 0 0 10 20 30 40 50 60 70 80 90 Leisure (hours)

Consider a single mother with the utility function U = 2/3 log(x) + 1/3 log(), where x is consumption and  is leisure. The mother can work up to 100 hours per month. Any of the 100 hours that are not worked are leisure hours. She earns a wage of $10 per hour and pays no taxes. The consumption price is normalized to $1. To be able to work, she has to incur a child care cost of $5 for every hour worked. a. Suppose that there is no tax and welfare benefits. How many hours will she work and what will be her consumption level? Draw the graph depicting her budget set with consumption on the vertical axis and leisure on the horizontal axis. b. Suppose that the government introduces a negative income tax (NIT) that guarantees an income of $200 per month. The benefit is taken away one for one as earnings increase. Draw the new budget set. Compute the new number of hours worked and consumption level. Has consumption increased and is the mother better off? Why or why not? c. Now…

SM3

just subparts a, b and c please

You are HR director for a growing architecture firm in Fort Lauderdale, Florida, which currently has need of drafting 20 blueprints every hour. Each of your company’s architects can create on average four blueprints per hour. You are considering hiring four drafters to shoulder the load; each drafter is slower than the architects and can create on average only two blueprints per hour. You scan the current wages in the Ft. Lauderdale area (https://www.bls.gov/oes/current/oessrcma.htm) and notice that the architects in your company earn the local occupational median wage of $30.14 per hour, but that the prospective four drafters will likely each want to get paid their local occupational median wage of $23.52 per hour. a.   Would your company save money in the creation of the 20 blueprints by hiring the four new drafters and firing some architects? b.   The Bureau of Labor Statistics projects that employment of drafters over the next decade will drop by 1.2%, compared to an increase of…

Five fishermen live in a village and have no other employment or income earning possibilities besides fishing. They each own a boat that is suitable for fishing, but does not have any resale value. Fish are worth $5 per pound and the marginal cost of operating the boat is $500 per month. They all fish in a river next to the village, and they have determined that when there are more of them out there on the river fishing, they each catch less fish per month according to the following schedule: Boats Fish Caught per Boat (pounds) 200 190 175 155 130 If each fisherman acts in his own best interest, his average cost is the same as $ continue operating his boat as long as his . Thus, there will be 1 2 345 Each fisherman will is positive. If he catches 130 fish, his profit is boats in the river.