Consider an industry with two firms that are simultaneously deciding whether to make costly safety investments such as sprinkler systems in a plant or escape tunnels in a mine. unlike the firms, potential employees do not know how safe it is to work at each firm. employees only know how risky it is to work in this industry. if only firm 1 invests, workers do not know that safety has improved at only firm 1's plant. because the government's accident statistics for the industry fall, workers realize that it is safer to work in the industry, so both firms pay lower wages. the profit matrix shows how the firms' profits depend on their safety investments. could cheap talk lead both firms to invest in safety? why or why not? cheap talk

Steele bicycle manufacturing company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. steele produces and sells only 10,000 bikes each year. due to the low volume of activity, steele is unable to obtain the economies of scale that larger producers achieve. for example, steele could buy the handlebars for $31 each: they cost $34 each to make. the following is a detailed breakdown of current production costs: after seeing these figures, steele's president remarked that it would be foolish for the company to continue to produce the handlebars at $34 each when it can buy them for $31 each. calculate the total relevant cost. do you agree with the president's conclusion?

Which statement about the cost of the options is true? she would save $1,000 by choosing option b. she would save $5,650 by choosing option a. she would save $11,200 by choosing option b. she would save $11,300 by choosing option a.

During the holiday season, maria's department store works with a contracted employment agency to bring extra workers on board to handle overflow business, and extra duties such as wrapping presents. maria's is using during these rush times.