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President Obama, in promoting the cost savings of government health care stated: "... Private insurers have to make a profit. Nothing wrong with that, that's what they do. And so [private insurers have] higher administrative costs, plus profit on top of that." Are profits something that is added on to costs?
With a Swedish Kroner, the likelihood of getting Heads when it is spun on edge is 0.2. If X is the random variable where X(H)=1, X(T) = -1, find the expected value E(X), the variance Var(X), and express X in its standard form. Consider two fair dice,..
Explain why the reduction in employment would be less than 5 percent in the latter case. In light of the short-run elasticity of demand for migrant workers, how easy do you think it would be for the industrial farms to replace the workers’ efforts by..
How important is the existence of a significant barrier to entry to maintaining a monopoly? What would be the result if a monopoly market could be easily entered?
There are three retirement plans under development. Each plan has a 6% compounded monthly and you cannot take a withdrawal until year 20. One plan requires a payment of X/year for the next 10 years. The other requires a payment of $200 each year from..
A firm's current profits are $750,000. These profits are expected to grow indefinitely at a constant annual rate of 5 percent. If the firm's opportunity cost of funds is 8.5 percent, determine the value of the firm
Explain in words and in diagrams how a tax on high-skilled labor burdens low- skilled workers. Which of the following taxes do you think would cause the larger excess burden? In one or two sentences explain why?
What is the biggest disadvantage of using shells as money.
In a market with duopoly, if market demand is P=90-Q find the cournot reaction curves and the qournot quantity solutions in the case where marginal cost (MC=0) and the case where MC=30, what are the monopoly quantities in both cases? and which quanti..
The VIU has convinced the public utility commission (PUC) that it is a natural monopoly and thus it has been granted an exclusive franchise to produce electricity. What is the competitive equilibrium in the absence of rate of return regulation? What ..
Consider current on-demand digital media delivery trends, such as Apple TV, Netflix, and Hulu. Choose one company. Based on the material covered this week in the lectures and textbook, do you believe that this company has a viable revenue model? Why ..
How many acres should John choose to mow in order to maximize profit. Prevailing market price of lawn mowing is $20 per acre.
Suppose a gardener produces both tomatoes and squash in his garden. If he must give 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is a) 0.62 bushels of squash b) 1.6 bushels of squash c) 3 bushels..
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