You operate a small catering firm specializing in sit-down dinner parties that you prepare and serve yourself with no . a client of yours loves your food so much that she has asked you to cater her daughter's wedding reception for 300 people, to be held in her back yard. it's your first chance at a big event and you're not really set up for it. you don't have the equipment, you don't have the staff, and you don't have the connections to musicians; however, you're tempted. what would be your wisest decision? a. accept the job and use this chance to make all the contacts you need to expand your business. b. agree to make the food if the client will subcontract all the other services herself. c. turn down the job, explaining why you can't do it, and wish her luck finding someone else. d. turn the job down; however, give the client the name of a high-quality catering firm that can meet her needs.

Which of the following accurately describes one way that individual goods differ from public goods? a. people can be excluded from using individual goods if they don't pay. b. all individual goods are normal goods. c. demand for individual goods is always inelastic. d. consumer rivalry results in decreasing marginal utility for individual goods.2b2t

Ajustification for job training programs is that they improve worker productivity. suppose that you are asked to evaluate whether more job training makes workers more productive. however, rather than having data on individual workers, you have access to data on manufacturing firms in ohio. in particu- lar, for each firm, you have information on hours of job training per worker (training) and number of nondefective items produced per worker hour (output). (i) carefully state the ceteris paribus thought experiment underlying this policy question. (ii) does it seem likely that a firm’s decision to train its workers will be independent of worker characteristics? what are some of those measurable and unmeasurable worker characteristics? (iii) name a factor other than worker characteristics that can affect worker productivity. (iv) if you find a positive correlation between output and training, would you have convincingly established that job training makes workers more productive? explain.

Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.