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What incentive would the big hospital have in coming into a small, rural community? Do you think they could recover their costs when the vast majority of the population is on government assistance or uninsured entirely?
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -2, while group 2’s is -5. Your marginal cost of producing the product is $10. Which of the followi..
Imagine the economy starts off at the steady state, with m=v=1 and b=1/2; additionally, suppose that the Fed's infaltion target (π-bar) is 1% and that the real federal fund rates (r-bar) is 1%. In period 1, political uncertainty causes a negative AD ..
Illustrate what is the four industry concentration ratio of the hamburger organization in this town.
Suppose there are two types of drivers on the road. Speed Racers have a 7% chance of causing an accident per year, while Low Riders have a 2% chance of causing an accident per year. Suppose the insurance companies know with certainty each driver’s ty..
Using a budget constraint and a map of indifference curves, show graphically and explain whether the following statement is true. If all prices double and the consumer's income also doubles, there will be no change in the equilibrium bundle of goods ..
Show that with this particular exchange rate, the returns in 'like' currencies are approximately the same. Explain the intuition underlying your results.
If the time-frame at hand is sufficient for all inputs to be variable (adjustable), then the firm is
Demand for a good is Qd = 20,000 – 100 P. Supply is Qs = -1000 + 200 P. Find Q*, P*, consumer surplus, producer surplus, and total variable costs. Make a graph and label it. What is the elasticity of supply at the solution point? What is the elastici..
What are the economic justifications that economists have enumerated for quotas, restrictions and taxes on international trade? What are some of the economic implications of a society imposing a tax on imported goods? Does it matter if the goods are ..
What is their opportunity cost if they decide to operate this business? Set up the accounting profit equation. Set up the economic profit equation.
In the market of identical firms, the market demand function is Q=1000-1000P. The marginal cost is the same for all firms, mc=0.28. Characterize what is the firm’s optimal output and price when there is a single firm in the market. Characterize what ..
Also assume the price per unit of these goods is as follows for the years noted and 2010 is the base year.
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