Your Boss Is Trying to Decide Whether to Buy Out

question 188

True/False

Your boss is trying to decide whether to buy out a rival company and asks for your advice.The boss says that she will buy the rival if there is evidence that the rival is operating inefficiently.(Your company will then improve its efficiency and increase profits. )She will not buy the rival if there is evidence that the rival is already operating efficiently.Your boss gives you the following data on the rival's operations: The average product of labour is 4,the marginal product of the last worker hired is 10,the wage is $20,and the price of output is $5.Based on this information,you should tell your boss to buy the rival.

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Definitions:

Emotion Schemas

Mental experience that includes feelings, memories, thoughts, images, and noncognitive elements like hormonal shifts that interact with and may amplify a basic emotional experience.

Dyadic Skills

The interpersonal skills required to effectively manage and navigate two-person relationships, such as communication and conflict resolution.

Orienting System

A cognitive mechanism that directs attention towards novel or significant stimuli in one's environment.