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1. The marginal cost pricing model calculates a mark up over marginal costs using estimates of the price elasticity of demand. Will any other pricing strategy result in higher profits?
2. Price discrimination needs the ability to distinguish customers who are the most price- sensitive and 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. Explain 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?
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suppose that the economy is currently at potential output. also suppose that you are an economic policy maker and that
What is the quantity of households that would subscribe at a price of $0?
Some states have had laws restricting the sale of most goods on Sunday.oppose such laws because they find Sunday afternoon a convenient time to shop.
At a recent meeting, the president and the CEO of Production, Inc. got into a heated argument about whether or not to shut down the company's plant in Flint, Michigan. The plant currently loses $50,000/month. The president of Production, Inc. argu..
use an aggregate demand ad and aggregate supply as model short run model to analyze this problem. do not use a
You plan a major adventure trip for the summer. You won’t be able to take your usual summer job that pays $6,000, and you won’t be able to live at home for free.
suppose that a firm sells in a competitive market at a fixed price of 12 per unit. the firms cost function is c 200
1. banks are exposed to interest rate risk primarily becausea interest rates are very difficult to forecast.b borrowers
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