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Suppose Town A and Town B each have four hospitals. The following table gives the bed size and output of each hospital. Based on this above information, what is the Herfindahl-Hirschman Index (HHI) for each town? Which market (Town A or Town B) is more concentrated? Does your answer depend on how you measure hospital market shares?
Hospital Town A Town B
Size Output Size Output
(#ofbeds) (Annual # of (#ofbeds) (Annual # of
Pt. discharge) Pt. discharge)
A 250 8,000 150 2,200
B 250 7,300 50 1,100
C 250 6,400 500 16,000
D 250 5,400 350 10,000
Suppose that a monopolist seller of spreadsheet and word processor programs faces four types of consumers, A-D. The willingness to pay for a spreadsheet is $0 for types A and B, and $100 for types C and D.
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Calculate Profit Maximizing price for Coke and for Pepsi Using those prices, MC, and the optimal pricing formula above, calculate the price elasticity of demand
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The first audit of the books of Bruce Gingrich Company was made for the year ended December 31, 2015. At the beginning of 2013, the company purchased a machine for $494,300 (salvage value of $52,600) that had a useful life of 6 years. The bookkeeper ..
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The relationship between sticky input prices and flexible output prices explains:
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Why are mid-ocean ridges (divergent boundaries) usually offset by numerous transform faults along their length? Feel free to refer to your textbook
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -3. The firm’s marginal cost is constant at $25 per unit. a. Express the firm’s marginal revenue as a function of its price. b. Determine..
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