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1. The marginal cost pricing model calculates a markup over marginal costs using estimates of the price elasticity of demand. Will any other pricing strategy result in higher profits?
2. Price discrimination requires the ability to distinguish customers who are the most pricesensitiveand the ability to prevent arbitrage (resale of your products by customers who buy at low prices). What attributes of healthcare products make these tasks easy to do?
3. Describe some healthcare situations in which an agent has taken advantage of a principal.Now describe some healthcare transactions that have not taken place because of fears about asymmetric information.
4. What are some strategies for reducing adverse selection in insurance markets? What sorts of problems do these solutions cause?
A company is manufacturing output in a competitive market, where demand is P = 24 - 2Q. Describe the nature of the market failure and derive Pareto optimal level of output.
How does industry-level price elasticity of demand shape the opportunities for making a profit in an industry? How does firm-level price elasticity of demand do it?
In 2007 and 2008 the Federal Reserve Open Market Committee voted to lower interest rates repeatedly. Please explain: a) why the Fed would do this, b) how the Fed would do this,c) Possible consequences on the economy of the Fed's actions.
1. determine whether the following production functions exhibit constant increasing or decreasing returns to scale.
Singer Taylor Swift has a monopoly over a scarce resource: herself. She is the only person who can produce a Taylor Swift concert.
State the commodity in which each country has absolute advantage and identify the commodity of comparative advantage for each country
Someone claim that immigration must always be good for economy because the raised supply of labor will result in a higher GDP. Estimate this statement.
part 1 special characteristics of purely competitive firms1. how does the investment banks industry fit into the
Which has more impact: a doubling of the jobfinding rate or a halving of the job-separation rate? Does your result have any implications for government policy?
If an effort to “maintain national security” government demands the wheat growers in America to produce Qs=16million pounds per year. The market can be expressed as P=120-3Qd and P=5Qs. What is the result of the government’s actions?
Draw a standard supply and demand diagram which shows the demand for new housing units that are purchased each month, and the supply of new units built and put on the market each month.
you are the manager of a firm that receives revenues of 40000 per year from product x and 70000 per year from product
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