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1. The marginal cost pricing model calculates a markup over marginal costs using estimates of the price elasticity of demand. Will any other pricing strategy result in higher profits?
2. Price discrimination requires the ability to distinguish customers who are the most pricesensitiveand the ability to prevent arbitrage (resale of your products by customers who buy at low prices). What attributes of healthcare products make these tasks easy to do?
3. Describe some healthcare situations in which an agent has taken advantage of a principal.Now describe some healthcare transactions that have not taken place because of fears about asymmetric information.
4. What are some strategies for reducing adverse selection in insurance markets? What sorts of problems do these solutions cause?
Find two points on the curve that have a common tangent line. Bonus: Prove that there are only two such points. I have a midterm tomorrow and I cannot solve this. Can someone solve and explain how/why they did what they did?
Increasing jet fuel values recently led most major United States airlines to raise fares by approximately 15%. Describe how this substantial increase in airfares would affect the following;
Company M and N compete for market and decide independently how much to advertise. Every one can expend either $10 million or $20 million on advertising.
However, rather than having data on individual workers, you have access to data on manufacturing firms in Ohio. in particular, for each firm, you have information on hours of job training per worker(training) and number of nondirective items produ..
Explain why Chrysler's decision might have been prompted by movements in its wage costs or capital costs, or both. Why would Chrysler have instituted this production change for its most popular
Py =4 and Uo is the maximal level utility when Px =5, Py =4 and I =100. find the the compensated demand curve (or of Hicks) and draw it on the same graph. for what value of Px the two curves will cut? what is the elasticity of compensated demand w..
An accountant for a car rental company was recently asked to report the firm's cost of producing various levels of output. What is the average fixed cost of producing 2 units of output? What is the average variable cost of producing 2 units of output..
Illustrate the above relationship between income and savings rate using a graph with income on the x-axis and total savings on the y-axis. B). Will a government policy to redistribute income to achieve less income inequality potentially help or hurt ..
If nothing else changes, what happens to the price and quantity if the supply curve shifts to the right? What is the law of supply? Give two examples of how you have observed the law of supply at work.
If the appropriate interest rate is 13 percent, what kind of deal did the player snag?
Briefly explain how this will affect money supply over time and how, even without any intervention on the part of the government or the central bank, the economy would self adjust over the following few years.
How much would each farmer produce in the long run? How many farmers would exist in the industry in the long run and
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