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In a world of completely selfish individuals, if we could measure each person's marginal value for his or her own medical care, what conditions must be met in order for the healthcare market to be at an optimal level of output?
Suppose you win a lottery, and your after-tax gain is $40,000 per year until you retire. As a result, you decide to work part time at 32 hours per week in your old job instead of the usual 40 hours per week. Calculate the annual income effect on hour..
The distribution of family income is preferable than the distribution of household income because
Describe the output level where average variable costs are minimized. Determine the output level where marginal costs are minimized.
Chris is renting a house, and it does not have a refrigerator. A refrigerator is worth $3 every day because Chris will eat out less. Chris has a discount rate of 18%. Refrigerators usually last 5 years. How much is Chris willing to spend on a refrige..
A farmer has a production function f(L) where the input is capital (L). The cost of this loan is L(1+i). The farmer also has an outside option (loan from family member) which generates a profit of A.
Compute the HHI index for each of the following industries. Which industry is the most concentrated. An industry with five firms that have the following market shares.
Many argue that breaking up a monopoly is a Pareto-efficient change. This interpretation cannot be so because breaking up a monopoly makes its owners (or share holders) worse off. Do you agree or disagree. Explain your answer.
Illustrate what are the levels of income per worker also consumption per worker. Show how capital stock per worker will evolve over time in both countries.
The price elasticity of demand is: The demand curve for physician office visits is quite inelastic; therefore, a:
Wal-Mart is often criticized for importing many of the goods they sell. Why do they buy goods from foreign markets.
Describe a situation that would call for applying one or more of any (dynamic economic model/legit model/random walk model/spurious regression/co integrated time series/tests of stationary). Explain your rationale for applying the model you chose.
Suppose that Charles, an economist from an AM talk radio program, and Dina, an economist from a university in Massachusetts, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
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