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Two hospitals want to merge. The price elasticity of demand is -0.20, and each clinic has fixed costs of $100,000. One clinic has a volume of 9,200, marginal costs of $70, and a market share of 3 percent. The other clinic has a volume of 15,800, marginal costs of $80, and a market share of 6 percent. The merged firm would have a volume of 18,000, fixed costs of $80,000, marginal costs of $60, and a market share of 6 percent.
What are the total costs, revenues, and profits for each clinic and the merged firm? How does the merger affect markups and profits?
Many economies impose restrictions on international capital flows, assuming that such restrictions limit the scope for arbitrage between domestic and foreign bonds, thereby effectively making such bonds poorer substitutes for each other, explain how ..
When the fed raises the federal funds rate, eventually there is.
Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 tirllion and public saving is $0.2 trillion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment.
What is the marginal opportunity cost of producing the second unit of clothing? What is the total opportunity cost of producing the second unit of clothing? What is the marginal opportunity cost of producing the third unit of clothing? What is the to..
Discuss the issue of health care in the context of the following microeconomic concepts: ?Marginal analysis ?Trade-offs ?Opportunity costs ?Normative versus positive economics
Using the current specifications, a new road will cost $1.5M initially, need $120K in annual maintenance, and need to be resurfaced every 10 years for $1.1M. If the highway department's interest rate is 6%, which specification is preferred?
Jane lives in a dormitory that offers soft drinks and chips for sale in vending machines. Her marginal utility for soft drinks (Good X) is equal to 3Yand her marginal utility of chips (Good Y) is equal to 3X. MUx = 3Y MUY = 3X Soft drinks are priced ..
Consider this statement. “It is estimated that leaky pipes and dripping faucets are the source of hundreds of thousands of dollars of lost water each year. Business firms could reduce waste by inspecting more pipes thoroughly and repairing water leak..
What macro environmental trends and internal factors should Best Buy consider in developing new strategies? What actions might Best Buy take as a result?
q1. assume the government decides to fight obesity in america by imposing an excise tax on the saturated fat content of
Illustrate what was the growth rate of the GDP deflator between 1999 and 2000.
Let's say our government runs an advertising campaign, encouraging its citizens to reduce spending money on consumer items, and instead save more money. How does this affect economic activity?
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