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According to our discussion in class, the price of tuition at for-profit institutions (such as the University of Phoenix) tend to be much higher than people expect. The best explanation for this is:
a. For-profit institutions produce much better outcomes than public institutions, so they can charge a higher price
b. The federal government acts as a third-party-payer in this market by providing loans and grants
c. The federal government is directly involved in helping control the price in these institutions
d. The federal government directly restricts the number of students who can enroll at each institution e. All of the above
How has AccessLine financed itself to date? Why have they chosen this strategy? What have been the implications for the firm? Why is Dan Kranzler now considering raising funds from Apex Investment Partners?
Describe the procedure necessary to solve for equilibrium analytically. Show how this translates in an economy with an Edge worth box. If you have a demand curve as part of your solution method you should explain how it is derived from consumer and/o..
Which of the following explains the distribution of income? Why can suppliers of goods can more easily shift the incidence of a tax to the consumer if the demand of the good is inelastic? What are intergovernmental revenues generally used to do? Whic..
Rex Hofer has determined that demand for his product is given by Q = 180 - 5P and a cost equation given by C = 75 + .3Q. Determine the optimal price and quantity for the firm. Suppose that costs change to C = 25 + .4Q. Determine the new optimal price..
Draw a supply- demand diagram of the federal funds market and show the effects of a Federal Reserve Purchase of $85 billion in US Treasury Notes during a Quantitative Easing Campaign after the Fed has already lowered its Fed funds target to 0 - .25%.
Explain how will the level of the velocity of money change if there is a permanent (one time) increase in the nominal interest rate, holding other factors constant.
The substitution affect isolates the change in the consumption of a good caused by: The slope of the budget line represents. Given that income is $300, the price of good Y is $15, and the price of good X is $20. What is the vertical intercept of the ..
Suppose the chartered banks decide to greatly reduce the availability of student loans that are guaranteed against default by the Canadian government. What would you expect to happen to the demand for credit cards by students?
Explain the role of the Federal Reserve, who monitors it and is it effective in its job? Evaluate one of the strategies of the Federal Reserve.
Now suppose one big firm comes and buys out all of the firms in the cartel. This monopoly somehow miraculously is able to perfectly price discriminate. How much will this firm produce? What will be the deadweight loss created by this monopoly?
q.governments often complain about one anothers macroeconomic policies. this question asks you to analyze one example.a
Suppose a single firm produces all of the output in a contestable market. The market inverse demand function is P = 250 -5Q, and the firm’s cost function is C(Q) = 6Q. Determine the firm’s equilibrium price and corresponding profits.
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