Situation #1 Assume That You Have Hired Three Executives to Run

question 51

Essay

Situation #1 Assume that you have hired three executives to run your company each with a different job. All are equally productive and each can do the other person’s job if necessary. Assume that the first executive’s contribution to the company is worth $1,000,000 and is assigned to this task; the second one is worth $800,000 and the third one is worth $500,000.
-Referring to Situation #1 suppose that you decide that you have to fire the first and the third executive without hiring any replacements. What would be the opportunity cost of the second executive's work? Explain why your answer is not the same as in the question above.

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Definitions:

Tolerance

A physiological adaptation in which exposure to a drug or stimulus over time leads to a reduced reaction, necessitating larger doses to achieve the same effect.

Cocaine

A powerful stimulant drug derived from the coca plant, which can lead to serious health issues, dependency, and addiction.

Substance Withdrawal

Symptoms that occur upon the reduction or cessation of intake of addictive substances to which one has become dependent, often leading to significant distress or impairment.

Cocaine

A powerful and addictive stimulant drug extracted from the leaves of the coca plant, which increases levels of dopamine in the brain circuits regulating pleasure and movement.