1)Should a corporate executive authorize an expenditure of $100,000 to fund a new wing for B HALL? Presume that the expenditure reduces profit by $100,000.

a. Yes

b. No

c. Maybe

explain your answer.

2)Should a corporate executive authorize an increase wages of $5 per hour above the prevailing market wage? Presume that the labor force is homogeneous and that the firm can employ as many qualified employees as it wants at the prevailing market wage, that the increase reduces profit, and that the reduction in profit equals the increase in the wage bill.

a. Yes

b. No

c. Maybe

explain your answer.

please explain otherwise downvote