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Compute the cross elasticity of demand and characterize the goods as complements or substitutes (Please use "Arc Elasticity" to calculate)
a. Regular Flu shot offered by pharmacy Boxes of Tamu Flu sold by pharmacy
Price: $60/shot 720 boxes/week
Price: $80/shot 580 boxes/week
b. Conventional Dental cleaning copay Alternative medical service visit made
Price: $80/per cleaning 5,600 visits/year
Price: $100/per cleaning 6,400 visit/year
Consider an economy where, consumer’s utility function is given as U(C,L)=C-(1/2)L2 . where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2. The turnover cost per labor is (0.36)/(w/p). What happens to t as real wage in..
Analyze the Frequencies of Comments in Each Theme - To complete the research report, write a summary of the themes that you identified when analyzing the faculty comments about in-class disruptions
If policey makers tihink that the natural rate of unemployment is lower than it really is, then their policeies designed to move the economy to the estimated natural rate, if continued over the long run, will:
The supply-side effects of a tax cut arise because taxes act as (a stimulus/an incentive/a disincentive) to work, save, and provide entrepreneurial services. The supply-side from from an increase in government expenditure arise because government exp..
What price should you charge if you want the firm to earn only a fair rate of return? Assume as always that TC includes a normal profit.
Explain the role culture may play in influencing entrepreneurship both at the individual and social level. Define culture in your response.
There is a duopoly of beer producers, Biller and Moors, who produce identical hoppy ales, and each have marginal costs of $100 per keg. Assume there are no fixed costs. What are the best response curves in Cournot Oligopoly for these two producers? W..
Consider a case of small open economy. In this economy, there is an IT revolution, and as a result the productivity of the economy has gone up. What will be the eject of this productivity increase on interest rate and net export in this economy? What..
On the left show the market for potatoes and how the competitive market price for potatoes is determined by supply and demand. 2. Now act as if you are a potato farmer in the Midwest of the United States. Assume that due to an increase in the federal..
Suppose that the price of Hershey’s chocolate increases. What would happen to equilibrium price and quantity in the market for Godiva chocolate? Be able to draw the graph that illustrates your answer.
You’ve just decided to add a new line to your manufacturing plant. Compute the expected loss/profit from the line addition if you estimate the following: There is a 70% chance that profits will increase by $100,000. There is a 20% chance that profits..
Illustrate what real world data would you want to examine. What would you consider to be evidence of tit-for-tat pricing.
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