Question
Question 1 Suppose firm A charges $10 for its product. The marginal cost of producing each unit of the product is $3. Calculate the markup
Question 1
Suppose firm A charges $10 for its product. The marginal cost of producing each unit of the product is $3. Calculate the markup on price.
QUESTION 2-
Karen hires Madison, a college student, to baby sit her daughter, Amelia, when she goes out in the evenings.
Karen wants Amelia to go to bed by 8PM and only eat healthy snacks.
Ameilia, however, can be difficult when Madison tries to get her to go to bed at 8PM and whines until Madison gives her potato chips. Amelia usually gives in and lets her stay up late eating unhealthy snacks. As a result, Karen finds that it is difficult to get Amelia up in time to get her to daycare the next morning.
What kind of problem is this?
A problem related to adverse selection when finding baby sitters | ||
A principal-agent problem with Karen as the principal and Amelia as the agent. | ||
A principal-agent problem with Ameilia as the principal and Madison as the agent. | ||
A principal-agent problem with Karen as the principal and Madison as the agent. | ||
A principal-agent problem with Madison as the principal and Amelia as the agent. |
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Money Banking And The Financial System International Edition
Authors: R. Glenn Hubbard ,Anthony P Obrien
2nd Edition
129200018X, 978-1292000183
