EBK MANAGERIAL ECONOMICS
4th Edition
ISBN: 8220100546624
Author: FROEB
Publisher: YUZU
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Chapter 20, Problem 6MC
To determine
Moral hazard problem.
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While visiting and chatting with an old friend who lives in a rural area, a man's teenage daughter joins the conversation and shared that she wants to work on a farm after she graduates from college and that farming is her passion. She shared the graph that follows from the Bureau of Labor Statistics that she recently obtained that shows the average wage (salary) by profession. She was very confused about why different professions pay people different wages. She was expecting the pay rate for people who work in the farming industry to be paid more than other “unnecessary” professions. While sharing the data with you, she asked the following questions:
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caib 2 questions please
how can a sugery drink like pepsi have a tax rise and not loose its customers ?
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