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1) Explain why the following statement is false: "In the goods market, no seller would be willing to sell for less than the equilibrium price."
2) Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increases and the price of a complement good (for example, hamburger buns) increases, can you tell for sure what will happen to the demand for hamburgers? Why or why not? Illustrate your answer with a graph.
Suppose you're told that following a price increase, quantity demanded fell by 10 percent. What was the percentage change in price that brought
A firm scaled up its operation by increasing all inputs by 100%. If the firm experienced 150% increase in the output, the firm's long-run average cost exhibits:
Martha lends $200 to a friend who promises to return it after a year. Instead of lending it to her friend, Martha could have put the money in a bank where she could have earned an interest rate of 2 percent per annum. Martha's opportunity cost of ..
Consider options on Microsoft stock. Suppose that there are call options with a strike price of $10 and put options with a strike price of $10, both with the expirations date of January 16th. Suppose that there is a 50% chance that the stock price wi..
Set out a stepwise plan to address this situation. Based on the conclusions you draw, recommend policy changes by the hospital and medical group.
In neoclassical economics, based on the cost and the demand, a firm is assumed to choose its profit maximizing level of output. According to Hayek, what’s the problem with these assumptions?
Will price be lower or higher as such an agreement in long-run equilibrium than would be the case if firms didn't collude.
Provide two examples of how managed care review mechanisms reduce health care costs
Suppose there is a permanent decrease in demand for gym memberships.
Suppose you manage a perfectly competitive firm. Your short-run total cost is given by the following: TC=200+2q2, where q is the quantity produced by your firm. Given this total cost, the firm's short-run marginal cost is given by: MC=4q. If the mark..
Suppose biochemists discover an enzyme that can double the amount of ethanol that may be derived from a given amount of biomass. Based on this technological development, we expect the supply curve for ethanol to shift to the right.
What distinguishes money from other assets in the economy. What is commodity money and fiat money, and which kind we use.
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