What does it mean to have market power

Reference no: EM13182012

1) Why have economic analyses of clinical and administrative innovations become more important?

2) A clinic finds that by eliminating appointments it can reduce costs. The clinic is able to eliminate some telephone staff, and physicians become more productive. Patients wait until the physician is available, so there is virtually no down time. Does this analysis adopt a societal view of costs? Why might this analysis result in a bad managerial decision?

3) Treating a patient with congestive heart failure with tPlex rather than Isother increases average life expectancy to 12.3 years from 11.5 years. The added cost of therapy is $14,000. What is the cost per life year?

4) What does it mean to have market power? Are firms with market power extremely profitable?

5) Why might banning advertising drive up prices?

Reference no: EM13182012

Questions Cloud

Any way in which oil price shocks could have been beneficial : All major nations had their currencies set at a fixed exchange rate with the American dollar, but the dollar was the only currency convertible into gold. Nixon's unilateral decision brought instability to the international monetary system from 197..

How the two economies respond differently to a boom : Explain how the two economies respond differently to a boom and to a slump. What are some factors that might influence the slope of the Phillips curve? Do you think the slope of the Phillips curve has changed over time in the U.S. economy? Consider..

What will the consumer surplus be after the tax : What are the equilibrium quantity and price? How much consumer surplus exists in this market? If a $2 excise tax is levied on this good, what will happen to the equiilibruim price and quantity? What will the consumer surplus be after the tax?

What is the rate of return on this investment per six months : John Q is planning to buy a bond having a face value of $100,000 for $90,000. The bond is paying 8% per year payable semi-annually and is redeemable 6 years from now at its face value. What is the rate of return on this investment per six months a..

What does it mean to have market power : A clinic finds that by eliminating appointments it can reduce costs. The clinic is able to eliminate some telephone staff, and physicians become more productive. Patients wait until the physician is available, so there is virtually no down time. D..

Determine the quantity of chairs produced in a month : What is the quantity produced if L = 1,000 and K = 100? Image text transcribed for accessibility: A firm that manufactures office desks has the following production function in the short run: Q = 400 L0.8 K0.5 where Q = the quantity of chairs prod..

How much will this change inflation : What was the nominal interest rate last period (before the cuts) if the real rate was equal to the marginal product of capital?What happens to the real rate of interest this period (after the cuts) if the Federal Reserve does nothing to change the n..

How fast economy have to grow to bring unemployment down : Ben Bernanke has said that the Federal Reserve is going to continue its latest round of Quantitative Easing until unemployment falls to 6.5%. How fast will the economy have to grow to bring unemployment down to 6.5% by this time next year? Assum..

Find what is the break-even sales price per unit : A consumer product company is considering introducing a new shaving system called DELTA-4 in the market. The company plans to manufacture 75 million units of DELTA-4 a year. The investment at time 0 that is required for building the manufacturing ..

User Account

All Pages