Acompany is considering building a new factory. the factory will cost c to build. to operate, the factory requires 100 workers. once operating, it will generate p profits. if the company builds the factory and hires workers at a wage w it makes a payoff of: p-100w - c. if the company builds a factory but fails to hire workers, it makes a payoff of ( negative c (i. e. -c). if it doesn't build the factory, it makes 0 . the prospective workers currently have jobs that pay a wage of v. the worker's payoff is equal to their wages (either at the new factory or their current jobs).a) suppose the worker can be hired at their current wage (w=v). for what values of c will the firm build the factory? b) after the factory is built, the worker's demand that the firm accede to their wage demand or not have the factory operate (and thus loose the c investment). what demand will the workers make? anticipating this offer, what values of c will the firm build the factory?

Mr. smith recently faced a choice between being (a) an economics profes-sor, which pays $60,000/yr, or (b) a safari leader, which pays $50,000/yr. after careful deliberation, smith took the safari job, but it was a close call. "for a dollar more," he said, "i'd have gone the other way."now smith's brother-in-law approaches him with a business proposition. the terms are as follows: - smith must resign his safari job to work full-time in his brother-in-law's business.- smith must give his brother-in-law an interest-free loan of $100,000, which will be repaid in full if and when smith leaves the business. (smith currently has much more than $100,000 in the the business will pay smith a salary of $70,000/yr. he will receive no other payment from the business. the interest rate is 10 percent per year. apart from salary considerations, smith feels that working in the business would be just as enjoyable as being an economics professor. for simplicity, assume there is no uncertainty regarding either smith's salary in the proposed business or the security of his monetary investment in it. should smith join his brother-in-law and, if so, how small would smith's salary from the business have to be to make it not worthwhile for him to join? if not, how large would smith's salary from the business have to be to make it worthwhile for him to join?

Your take on decision making process

True or false: a fitted model with more predictors will necessarily have a lower training set error than a model with fewer predictors.