Millie Bush Has Written a Best-Seller

question 33

Multiple Choice

Millie Bush has written a best-seller.Revenues net of production costs are $300T^1/3A^1/3, where T is the number of publicity trips Millie takes and A is the number of ads for the book that appear.Millie has to pay for all of her own publicity trips, which cost $100 each.Her publisher pays for the advertising, which costs $100 per ad.Revenues from the book are split equally between Millie and her publisher.Let T₁ be the number of trips that Millie would choose to make in a Nash equilibrium where she chooses the number of trips and the publisher chooses the amount of advertising.Let T₂ be the number of trips that Millie should make if trips and advertising are determined so as to maximize total profits net of trip and ad costs.

• A)T₁ = 1 and T₂ = 1.
• B)T₁ = 1 and T₂ = 2.
• C)T₁ = 2 and T₂ = 1.
• D)T₁ = 1 and T₂ = 1/8.
• E)T₁ = 1/8 and T₂ =1.

Recognize the significance of key historical labor conflicts and strikes and their outcomes.

Understand the interplay between labor unions, employers, government, and society at large.

Understand the historical events and their impact on labor movements.

Analyze the criticisms and strategies of various forms of unionism.

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Definitions:

Historical Rate

The exchange rate at which a foreign currency transaction was converted into the reporting currency at the time of the transaction.

Net Liability Balance Sheet Exposure

The total amount of liabilities minus assets, indicating a company's financial position and potential exposure to risk if liabilities exceed assets.

Translation Adjustment

An accounting entry that reflects the impact of currency fluctuations in the financial statements of a company with operations in foreign currencies.

Foreign Currency

Currency used that is not the domestic currency of the country in which a transaction is being conducted.