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Explain how the Medicare Advantage program is intended to benefit consumers, insurers, and the government. If Medicare Advantage participants have lower average medical costs than traditional Medicare participants, explain why this might not be due to enhanced efficiency?
Consider a monopsonist in the labor market. Let the labor supply be given by L = 4w, where L is the employment level, and w is the wage rate. Suppose that the monopsonist has the production function F(L) = √ L. What is the wage rate and employment l..
A monopolist sells to two markets: in market 1 there is a constant elasticity of demand e1 -1 The monopolist charge a higher price in the market with the "more elastic" demand (i.e., the one with a more negative value of e).
In January 2001, $1 was equal to 1.06 euro. By January 2012, $1 was worth 0.76 euro. As a result of the change in the value of the dollar:
Describe the relation between marginal and average costs. Describe the relation between marginal and average fixed costs. Describe the relation between marginal and average variable costs.
Consider a monopolist with the inverse demand curve: P=50-Q. TC = (Q^3 /3) – 11Q^2 + 150Q + 200 and the MC = Q^2 - 22Q + 150. What is the profit maximizing level of price and quantity and what is the associated level of price? Will the firm keep prod..
If a firm has established monitoring devices that have a 50% chance of stopping shirking and an employee might gain $5000 from shirking, the employer can deter shirking by having employees post a bond equal to 2500, 5000, 10000 or 50,000
A college student is buying a new car, which costs $18,000 plus 7% sales tax. The title, license, and registration fees are $600. The dealer offers her a financing program that starts with a monthly payment of $300, and each successive payment will i..
(a) Calculate the NPV in U.S. dollars. (Show all calculations and ignore working capital) (b) Calculate the NPV in Mexican pesos.
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). Find real wage, employment, outp..
What are some of the goods you purchase in your life for which your demand is most elastic? Why? What are some of the goods you purchase in your life for which your demand is highly inelastic? Why?
Sets out the aggregate demand and aggregate supply schedules in Japan. Potential GDP is 600 trillion yen. What is the short-run macroeconomic equilibrium.
Assume demand for a medical service is given by the equation P = 1000-2Q. Assume the price without insurance is $100, but insurance reduces the consumer’s out-of-pocket price to $50. How many extra services will be consumed as a result of the out-of-..
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