ServicePro provides two kinds of services. During the most recent accounting period, the two service lines produced the following operating results:

Service 1 Service 2
Service revenue $ 110,000 $ 40,000
Unit-level materials $ (26,000 ) $ (8,000 )
Unit-level labor $ (36,000 ) $ (20,000 )
Product-level selling & administrative costs $ (16,000 ) $ (9,500 )
Company wide facility-level costs $ (4,000 ) $ (4,000 )
Net income $ 28,000 $ (1,500 )

If the company stops providing Service 2:

The company's income will increase by $3,500 per year.
The company's income will decrease by $3,500 per year.
The company's income will increase by $2,500 per year.
The company's income will decrease by $2,500 per year.

The text states, “the committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market….” why would the committee raise the federal funds rate as the labor market improves?

Evaluate a real situation between two economic actors; it could be any scenario: two competing businesses, two countries in negotiations, two kids trading baseball cards, you and another person involved in an exchange or anything else. use game theory to analyze the situation and the outcome (or potential outcome). be sure to explain the incentives, benefits and risks each face.

Afirm wants to hire a project manager (pm) at a salary of $100,000. 30% of pms have high ability, and 70% of pms have low ability. high ability pms generate $120,000 in revenue and low ability pms generate $80,000 in revenue. in addition to differences in productivity, high and low ability pms have different outside offers. if a high ability pm is not hired by the firm, she can work for another company at a salary of $80,000. if the low ability pm is not hired by the firm, she can work for another company for $70,000. high ability pms are also able to get a project management professional (pmp) certification at a cost of $1,000. low ability pms are unable to get a pmp certification (they would fail the test). the firm is not able to observe a pm’s ability, but is able to observe and verify whether or not the pm has a pmp certificate.(a) draw the extensive form of the game. expert answer