Do we best serve the shareholders by setting absolute or relative
The topic is: Do we best serve the shareholders by setting absolute or relative performance goals? ***You have to answer the topic question and all the questions below as well. An absolute system is unambiguous: “Earn $50 billion this year for us shareholders, Ms. CEO, and go home New Year’s Eve with $50 million, as […]
Discuss the pattern of absolute advantages across the two countries.
2: (10 points) Now consider the following (I increase foreign productivity in manu): MANUFACTURE PRODUCTIVITY (output per worker) AGRICULTURE PRODUCTIVITY (output per worker) LABOUR ENDOWMENT HOME 20 10 100 FOREIGN 25 5 100 a) Show how Foreign’s PPF has changed. b) Identify each country’s opportunity costs in each sector. Interpret. c) Who has the […]
