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3. Imagine that you have finished school and are working for a firm as an economist. Performance reviews are conducted annually, and salary increases are
3. Imagine that you have finished school and are working for a firm as an economist. Performance reviews are conducted annually, and salary increases are also awarded once a year. Your raise is dependent on your personal performance, as well as on other factors. Assume that your salary increase (I) is based on an index of the reliability of your forecasts (f), the current profitability of the firm (p), and your contribution to your department's projects (c) measured in revenue dollars. The salary increase function is: I = fa + In(p) + dc If the firm's profitability increases by 1%, by what factor will your salary increase
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