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PPOs and HMOs reduce the overconsumption of health care by A. charging on a fee-for-service basis and reducing administrative costs. B. reducing administrative costs and denying expensive services. C. reducing administrative costs and providing preventative care. D. denying expensive services and providing preventative care.
Identify two goods each whose demands exhibits (a) high income elasticity, (b) low income elasticity, (c) high price elasticity, and (d) low price elasticity. What accounts for the differences in elasticity?
What roles did President George W. Bush, Alan Greenspan, and the Securities and Exchange Commission have in the Enron scandal?
Graphically show deadweight welfare loss due to monopolies and then explain what it means. How can we see or feel this deadweight welfare loss?
In the long-run, a firm’s cost of production are shown by the long-run average cost curve. What forces explain the typical shape of the long-run average cost curve? How are the law of diminishing returns and diseconomies of scale different?
Economists argue about the potential benefits and cost of diversification. For example while diversification can certainly help company to promote new products at the same time through the merger of two firms it can be more expansive to develop commu..
According to the quantity theory, money in the long run affects: If the Fed increased the supply of money, and velocity remains unchanged, according to the quantity equation: The velocity of money is: The quantity theory of money states that: In a co..
Briefly explain the history of what happened including, but not limited to: Type of merger (horizontal, vertical, or conglomerate), the size and value of each firm prior to the merger, the value of the merged firm, how long the process took, length o..
Define cardinal and ordinal utility. What is the difference between the two? In economics, is utility measured cardinally or ordinally and why is this so?
Assume that M1 is currently $2,700 and M2 is $11,000. Determine the new levels for M1 and M2 and whether the new values represent an increase decrease or unchanged totals for M1 and M2 based on each of the following INDEPENDENT scenario: In other wor..
determine the amount at time 0(now) equivalent to the cost of owning and operating the machine for the next five year period. It is anticipated that the machine can be sold for $1000 at the end of the five year period. Use an interest rate of 10%.
Solve for the new equilibrium quantity (Q**), the sellers price (Ps), and the consumer’s price (P**). Solve for consumer surplus, producer surplus, government revenue and total surplus with the tax.
Atlas Transportation is considering installing temperature logger in all its refrigerated trucks for monitoring temperatures during transit. If the systems will reduce insurance claims by $40,000 per year for 5 years how much should the company be wi..
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