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The inverse demand for health care services is P = 500 - 40 Q where P is the price and Q the quantity of health care. The price of services is $100 but insurance covers 80% of it. What is the efficient quantity of health care? What is the DWL when people use insurance? Suppose now that demand is Q = 10 (This is a vertical line).What is the DWL in this case?
The production function of a restaurant includes items such as labor (i.e., cooks, waiters, a manager), capital (i.e., ovens, counters, tables, chairs, and a building), and land. In the short run, the owner of the restaurant will optimize production ..
Post and discuss why the tax credit enacted by the 2009 American Recovery and Reinvestment Act has no effect on the employees’ supply of labor using the concepts of consumer surplus, producer surplus and deadweight loss. Apply the effects of the Soci..
What are the boundaries of a firm? What determines the extent of vertical boundaries-vertical integration? What determines the extent of horizontal integration-scope? Use the cost-benefit analysis to describe the optimal boundaries of a firm.
Which of the following would be a change in monetary policy? With a reserve requirement of 4% how much money would be created if the government printed $100 and gave it to banks and the banks loaned it as normal? hich of the following policies was li..
Find out the ash equilibrium outcomes to this game. Illustrate which of the equilibrium outcomes is most reasonable.
Find two (2) examples of businesses in your local community that attempt to disclaim liability for damage to or loss of bailed property. Provide your reasoned opinion as to whether, in any or all of the examples you have discovered, the businesses h..
Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always willing to exchange three black shirts for one red shirt. What type of preferences is mike exhibiting? Are Carl's preferences monotonic? How do you k..
Why is economics considered a social science? What role does economics play in your personal and professional lives?
If decision makers do not bear the major wealth effects of decisions, then:
Compute most favorable output also profit for each firm and the market price. Also, compute the resulting profit of cartel.
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time? (Include data)
Retail sales taxes are used at the state and local level to finance general fund expenditures. In other words, the tax revenue collected via the sales tax is not tied directly tied to benefits received by each taxpayer. Retail sales tax fair?
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