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A government notices that a natural monopoly with constant marginal cost has emerged in a particular market. The government does not know the general shape of the demand curve and is considering levying a $1 per-unit tax on the monopolist. One concerned citizen objects, claiming that the tax will result in consumers paying $1.50 more per unit. Should the government dismiss this citizen's concern as unreasonable? Does your answer change if the market is perfectly competitive? Explain.
An insurer sold 100,000 policies at $6,800 and paid for all care. Ten percent of its customers were high risk ($50,000 in annual spending) and 90 percent were low risk ($500 in annual spending). What are its revenues and medical costs?
If you were a supplier to the furniture producer, would have chosen to see the analysis performed in physical sales units rather than dollars of revenue.
The hospital buys a new MRI machine for cash. The accounting equation would be altered in the following manner:
A garbage disposal company purchased a refuse truck on Feb. 2, 2113, at a cost of $72,000' The truck has a useful life of 8 years with an estimated salvage vale of $17,000. The straight line method is used for book purposes. For tax purposes, the tru..
If the cross elasticity of demand between Coke and Pepsi is 2.02, then Coke and Pepsi are. Technology reduces the average cost of production, so in the long run.
q.assume that two firms compete in quantities cournot in a market in which demand is described by p 260 - 2q. every
Calculate the dominant firm’s residual demand, and marginal revenue of its residual demand. Plot them on the graph. Calculate the equilibrium quantity and price set by the dominant firm. Also calculate the equilibrium quantity supplied by each compet..
Discuss fixed and floating exchange rate systems. During what period in post-war international economic relations did each exist, respectively? Use the systemic and subsystemic levels-of-analysis to discuss the transition from one system to the other..
Describe the current trends that suggest "growth potential" for Kansas? How does the growth of the State economy in Kansas compare to national averages or to the other states? What are the demographic and employment trends in Kansas and How well educ..
Parker Products manufactures a variety of household products. The company is considering introducing a new detergent. The company’s CFO has collected the following information about the proposed product. What is the net present value of the proposed ..
If it cost Wardco $10million to treat the water and the value of mined products to customers is $8million, requiring water treatment would kill the project. Should Wardco be required to treat the water in this case?
How does Mancur Olson explain differences in economic performance of nations by the concept of public goods?
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