Suppose that a worker in boatland can produce either 5 units of wheat or 25 units of fish per year, and a worker in farmland can produce either 25 units of wheat or 5 units of fish per year. there are 10 workers in each country. political pressure from the fish lobby in farmland and from the wheat lobby in boatland has prevented trade between the two countries on the grounds that cheap imports would kill the fish industry in farmland and the wheat industry in boatland. as a result, boatland produces and consumes 25 units of wheat and 125 units of fish per year while farmland produces and consumes 125 units of wheat and 25 units of fish per year. if the political pressures were overcome and trade was to occur, each country would completely specialize in the product in which it has a comparative advantage. if trade were to occur, the combined output of the two countries would increase by

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]

Consider two similar industries, portal crane manufacturing (pcm) and forklift manufacturing (flm). the pcm industry has exactly three incumbents with annual sales of $800 million, $200 million and $100 million, respectively. the flm industry has also exactly three incumbents, with annual sales of $500 million, $450 million and $400 million, respectively. which industry is more likely to experience a higher level of rivalry?

Andy owns islander surfboard inc. in the past, andy has always given his employees bonuses during the holidays if they reached certain sales goals. this year, even though the company is thriving, he decided to cut bonuses from employees and award them to himself instead. what ethical theory of leadership is andy following?