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Assuming that prices are set competitively (i.e. set equal to MC of producing services), show in a supply-demand graph how we could measure the “efficiency loss” (or deadweight loss) associated with health care over-consumption.
In August 1994, a Mexican peso was worth 30 cents. A year later, it was worth only 16 cents since the political turmoil substantially increased the risk premium on Mexican assets. Using the Mundell-Fleming model,
Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the busi..
A monopoly has the market demand Q = 1000-1000P, with a marginal cost, MC = 0.28. What is the optimal price and quantity for perfect competition? What is the optimal price and quantity for monopoly?
Why do you think that approximately one-sixth of the world's population has not experienced much substantive economic growth over the past 30 years?
The marginal cost of servicing a skier of either type is $10. If Snow City Ski Resort (third-degree) price discriminates then the profit maximizing prices
Mary is in equilibrium. The MUa =6, MUb =12, Pa=2, what is the price of b? Zach is in equilibrium. The MUa=2, MUb=8, what is the price of a in terms of the price of b? What is the utility maximizing or optimization condition?
Which of the following two examples illustrates adverse selection and which illustrates an incentive problem? Explain your answer. In each case, give one method that the restaurant might use to reduce the problem.
Graphical demand and supply analysis, explain the impact on price and quantity in the market for petrol if oil production is disrupted.
Which of the following market conditions in an oligopoly increase the probability that it will be able to maintain prices well above the competitive market level? Explain your answer briefly in each case.
Explain the two basic methods by which the unemployment rate is measured. Which is the more reliable? Explain your answer.
Compute the resulting equilibrium price quantity combination for every industry. Illustrate your answer with a suitable graph.
With the rise of the Video on Demand market, which threat is likely to have the least impact on Netflix’s streaming service business?
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