Homework answers / question archive / 1)What is a source of conflict between owners and managers ( both are risk-takers but that was a wrong answer) what about both are highly risk-averse?2-Incentive problems in contractual relationships generate what? ( cost that decrease value; revenues that increase value; or revenues that decrease value)   2)Discuss the Conflicts of interest at credit rating agencies during the global financial crisis, and clearly define a credit rating agency its roles

1)What is a source of conflict between owners and managers ( both are risk-takers but that was a wrong answer) what about both are highly risk-averse?2-Incentive problems in contractual relationships generate what? ( cost that decrease value; revenues that increase value; or revenues that decrease value)   2)Discuss the Conflicts of interest at credit rating agencies during the global financial crisis, and clearly define a credit rating agency its roles

Economics

Share With

1)What is a source of conflict between owners and managers ( both are risk-takers but that was a wrong answer) what about both are highly risk-averse?2-Incentive problems in contractual relationships generate what? ( cost that decrease value; revenues that increase value; or revenues that decrease value)
 

2)Discuss the Conflicts of interest at credit rating agencies during the global financial crisis, and clearly define a credit rating agency its roles.

3)Consider Robinson Crusoe (RC) on an island by himself. There is a single good (coconuts) which can be produced with his work effort (n). RC's production function is: y = f(n) = a + ßn? where a and ß are positive constants and ? is in the open interval (0,1). RC's preferences over leisure (?) and the consumption of coconuts (c) are represented by the utility function u(c,?) = cd ? where d is a positive constant in (0,1). Finally, RC has a limited amount of time per period, normalized to 1, so that                                                                                        

4)Explain what happens to the demand curve for air transportation between New York City and Washington, D.C., as a result of the following events: (40 points) Thoroughly explain your answer and provide at least 2 situational examples and analysis for each one.