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The setting for this assignment is an imaging service and its pricing for computerized tomography (CT) scans. While CT scans can be done for many different parts of the body, and those scans can be done with or without contrast, this analysis is limited to CT scans of the abdomen and pelvis, with contrast. You have gathered the following information on the costs of providing CT scans: Variable costs per scan Variable labor $100 Variable facility costs $20 Supplies $60 Other $20 Total variable costs $200 Marginal costs are assumed to be constant and equal to the variable costs per scan. Total fixed costs are $350,000 per year. Total costs for the year are the total variable costs (variable cost per scan times the number of scans) plus the total fixed costs. The demand for CT scans depends on whether a potential client has insurance and the level of insurance coverage. You have identified three groups, with the following annual demand functions (i.e., these give the quantity demanded for a year): Group Demand function Low co-pay group Qd = 900 - 0.5P High co-pay group Qd = 1200 - 2P Uninsured Qd = 3000 - 10P.
I calculated the profit max price for the low, high and uninsured groups. Ph=400, Pl=1000 and Pu=250.
How do I calculate the total revenue and total variable costs for each group?
Referring to the Ontario Fault Determination Rules start by determining fault in this scenario.
An example of a permanent supply shock is:
The supply and demand curves for mousetraps cross at a price of $10 apiece. There is and always has been a price ceiling of $6 per mousetrap. Now the government imposes an excise tax of $2 per mousetrap (while maintaining the $6 price ceiling). Illus..
What effect does the economy have on population growth?
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What must a person who is claiming they were harassed in the workplace allege in order to first state a case with the EEOC for each of the following types of harassment. I. Sexual harassment – quid pro quo II. Sexual harassment – hostile environment ..
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Identify someone in your life who would benefit from taking this course, and explain the reasons why and speculate on what technology might be able to do in 15 years to improve the contracting process.
?(a) What waiting time represents the 90th ?percentile? ?(b) What waiting time represents the first? quartile?
Leslie works 35 hours a week at a wage of $20. Thus, her total weekly income is $700. On this income, she pays total taxes of $49. However, she calculates that on the last hour that she works, she pays $5. Leslie's average tax rate is what?
Assume that there are two types of consumers. In particular, consumers of type 1 has utility function u(x, y) = x0.5 y0.5, whereas consumer of type 2 has u(x, y) = x0.3 y0.7. Find the Marshallian demands of x for both types of consumers. Compute the ..
A small consulting company is planning to make deposits such that each one is 3% larger than the preceding one. What is the annual equivalent of this cash flow if the company makes 12 deposits and the interest rate is 8%? The first deposit is $7,000 ..
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