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please answer a-f 1) a. Using the notation in the textbook (same as in class), write an expression (mathematical) for the maximum profitable buyout that
please answer a-f
1) a. Using the notation in the textbook (same as in class), write an expression (mathematical) for the maximum profitable buyout that the firm can offer. b. A buyout will be accepted only if the offer is higher than the profit that the worker earns from staying. Using the notation in the textbook (same as in class), write an expression (mathematical) that captures this relationship c. Using the two expressions above, derive the expression for when a buyout is possible in terms of the worker's alternative and the worker's productivity at the firm only (i.e., the present value of the worker's alternative exceeds the present value of the worker's productivity at the firm). d. Assume that we have a production shock B, where 0 Step by Step Solution
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