Discuss the below:
Chapter -Employment Relationships
Q1 How does your analysis of VMP change if the employer is a monopolist producer of its output but a price-taker in the labor market?
Q2 Most restaurant customers tip according to a percentage rule-between 15 and 25 percent of the bill. Diners who have dinner and a $20 bottle of wine usually pay the same percentage of the bottle price as diners who order a $100 bottle. Why, when the same efforts must be made to uncork and pour both bottles?
Chapter-Time, Risk, and Options
Q3 Lenders perceive that you are risky, so you must pay 12 percent annual interest to borrow from one of them. You only receive 6 percent on funds you have deposited in the bank. Do the opportunity costs of borrowing and using your own funds differ in this example? Explain why or why not.
Q4 Devise a hypothetical business situation in which buying a lookback call option on a commodity may be a sound strategy for you. How about a down-and-out call option?