Assume you are the owner of a delivery service company with a large fleet of trucks and drivers. Each of your drivers is allowed two thirty-minute breaks per day. However, some of them take longer breaks than your policy allows.
You find out about this problem only by accident when you heard a couple of employees discussing during a morning coffee break. What kind of a problem is this for you from an economic point of view and what methods might you employ to mitigate this problem?
Question 2
Suppose the U.S. government encouraged consumers to trade in their old automobiles for more efficient, new models by paying up to 5,000 for the old automobiles.
These consumers who did trade in their old automobiles to take advantage of the government offer would be exemplifying the economic idea that
A) people are rational. B) people respond to economic incentives.
C) optimal decisions are made at the margin. D) equity is more important than efficiency.
Photograph of a brain specimen with a large malignant tumor.
Small and large intestines
Ardipithecus kadabba has large canine teeth that are only slightly smaller than those of living apes
The Stillwater Mining Company
Food service businesses