A bank embarked on a recruitment campaign of university graduates, and Francis, a recent graduate applied for a position. Francis was interviewed by the bank, and following the interview, the bank offered Francis a position by letter which set out a salary, and a starting date. Francis accepted the position by return mail. A few days after Francis began work for the bank, he was called into the Manager's office and presented with an employment contract that contained a confidentiality clause, and a proviso that either party could terminate the contract on three months notice, or in the case of the bank, payment of three months salary and accrued benefits. Francis signed the agreement. Francis worked for the bank for almost fifteen years, moving from the position of trainee through various promotions to the position of Branch Manager of a small branch of the bank. Some months later, he had a disagreement with the Regional office of the bank over the quality of certain loans he had made to local businesses, and his employment was terminated. On termination, he was paid three months salary and his accrued benefits. A week later, Francis instituted legal proceedings against the bank for wrongful dismissal. What might be the basis of the claim for wrongful dismissal? What likely response would the bank make to his claim?

5. Consider the following CES production function: Q- Aak . + (1-a) [-"JU where A>0; 00. c) Explain the economic relationship between CES and Cobb-Douglas functions. 240% Page 4 of 5 725 words 12:21 PM e D Y M O 10/27/2016Consider the Constant Elasticity of Substitution (CES) production function: q = f (k, l) = [kP + 1P]e, for p S 1, p # 0, and y > 0. a. (10 points) Show that the CES production function is homothetic. b. (5 points) Show that the elasticity of substitution, o, is equal to