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Currently, there is a $0.50 copayment on drugs. The HMO has decided to raise this to $1.00 per prescription. The cost of a prescription is $6.00, which mean the HMO's contribution to the total cost will fall from $5.50 to $5.00. Currently, the elasticity of demand is about -0.5 for prescriptions, and the HMO members use 2.2 prescriptions per capita. How much will be demanded after the new copayment is put into effect, and how much money will this save the HMO? Explain
If the banking system has a required reserve ratio of 25%, then the money multiplier is. If Bank A receives a $20,000 deposit and the reserve requirement is 25%, how much does Bank A have available to loan out?
Consider the two-period consumption model of borrowing and saving. Suppose Claire has an income of m1 today and m2 a year from now and can borrow and lend at the interest rate r. She chooses consumption levels c1 and c2 given her well-behaved prefere..
Evaluate how their business environment is influenced by government economic policy which may be identified through your application of economic theory.
If the Fed intends to decrease the money supply, what tools can be used? Briefly explain how each tool should be implemented.
How much is this account worth after 28 years? Submit your answer to the nearest dollar. What is the effective interest rate of an investment if the nominal annual interest rate is 7.77%.
Find the value of the test statistic (to 3 dec pl). Can we conclude that the proportions have changed during the year.
Jim accidentally runs over Mary in the parking lot. Mary was walking to her car (maybe she wasn’t paying really close attention to traffic), Jim didn’t look both ways, so he ran her right over. If the law of the jurisdiction is simple (pure) negligen..
A firm’s production function is given by: f(L,k) = L^1/2 , where L is the only input into production and it is variable in both the short and long run. Draw the long-run conditional labor demand in (L,Q) space (in other words, with L on the x-axis)
As the exclusive carrier on a local air route, a regional airline must conclude the number of flights it will provide every week also the fare it will charge.
q1. assume that a national restaurant firm called bbq builds 10 new restaurants at a cost of 1 million per restaurant.
A firm’s total cost of producing 50 units of output is $1,000. At this output level, average fixed costs are equal to $10. It follows that the firm’s average variable costs are equal to? To maximize profits, a price-taking (i.e., competitive) firm sh..
Find the average cost and marginal Costs.
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