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Why might firms that hire mostly untrustworthy people struggle to provide as much output in a competitive market as firms that attract and retain mostly honest individuals?

Short Answer

Expert verified

The discrepancy grows as a job has become more complex.

Step by step solution

01

Introduction

Attracting and retaining talent, improving current talent, managing employees, creating leaders, making decisions, restructure to capture value quickly, lessening operating expenses for future, creating culture a market leader, leading transition, and transitioning to innovative senior roles are the ten most basic issues currently facing leaders.

02

Given Information

It's amazing how much of a productivity boost a company can get from great people.

03

Explanation

Prime performers are 400percent more efficient than average results, according to a new analysis of 600,000 researchers, artists, politicians, and athletes. 2 Company studies not only reveal similar result, but it also show that the discrepancy grows as a job has become more complex.

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Most popular questions from this chapter

Consider Figure 23-8. Why does the output rate in panel (b) remain atqe units per hour even if the position of the AC curve shifts from AC1toAC3following an increase in fixed costs, and how do we know that economic profits then become negative?

Why do economists seeking to study industry entry and exit measure the number of firms instead of the number of establishments? (Hint: At which level are fundamentally independent economic decisions made by a business; the firm as a whole or an individual sales outlet of the firm?)

Consider the diagram nearby, which applies to a perfectly competitive firm, which at present faces a market clearing price of \(20per unit and produces 10,000units of output per week.

a. What is the firm's current average revenue per unit?

b. What are the present economic profits of this firm? Is the firm maximizing economic profits? Explain.

c. If the market clearing price drops to \)12.50per unit, should this firm continue to produce in the short run if it wishes to maximize its economic profits (or minimize its economic losses)? Explain.

d. If the market clearing price drops to $7.50per unit, should this firm continue to produce in the short run if it wishes to maximize its economic profits (or minimize its economic loses)? Explain.

In several perfectly competitive markets for minerals used as inputs in digital devices, persistent increases in demand eventually have generated long-run increases in the market prices of these devices. Describe in words the types of adjustments that must have occurred in these markets to have brought about this outcome, and evaluate whether such digital-device industries are increasing-, constant-, or decreasing-cost industries.

If the price of a particular rare earth were actually to drop below its original level following entry of new firms even as market demand continued to increase, what type of industry would exist?

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