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Two similar surgeries, breast reconstruction and breast augmentation, have different prices. Breast augmentation is cosmetic surgery not covered by health insurance. Patients who want the surgery must pay for it themselves. Breast reconstruction following breast removal due to cancer is covered by insurance. The price for one of the surgeries has increased by about 10% each year since 1995, whereas the other has increased by only 2%per year. Which of the surgeries has the lower inflation rate? Why?
Ang Electronics, Inc., has developed a new DVDR. If the DVDR is successful, the present value of the payoff (when the product is brought to market) is $34.7 million. If the DVDR fails, the present value of the payoff is $12.7 million. If the product ..
q.describe the following terms in your word.bull gross domestic product gdp bull real gdp bull nominal gdpbull
Identify some ways that nursing homes can signal high quality to consumers. Which of these signals are most apt to be reliable? What are some strategies for reducing adverse selection in insurance markets? What sorts of problems do these solutions ca..
An increase in the labor force: Consider a onetime change in government policy that immediately and permanently increases the level of the labor force in an economy (such as a more generous immigration policy).
Consider an economy where 1999 is the base year used for all calculations of price indices and constant-price aggregates. The price of the average good counted in GDP was 5% higher in 1997 than in 1999 and real GDP in 1997 was $64,800. In 1998 the ra..
Illustrate what do you think would happen to sale and price of DVDs after this.
A boat is purchased by financing $40000. The loan is to be paid over a 5 year period with annual payments based on a 12% interest rate. Each successive payment is scheduled to be 10% greater than the previous one. Determine the size of the smallest p..
What is the rationale for subsidizing some telecommunications services (such as Internet access) for some people and institutions? Discuss. How would Ramsey suggest that policymakers resolve the tension between universal service policies on the one h..
Compute and plot yield spread (difference between yields to maturity of console and one-period bond). Is yield spread pro-cyclical or counter-cyclical.
Illustrate what is elasticity of demand at profit maximizing level of output. Without use of any calculations, determine wherefirm=s total revenue would increase, decrease, or stay same if CRAPCO attempted to increase its price by .2%. Explain how..
suppose at the current level of labor used the mrp 100 and the mfc 50. to maximize profits the firm shouldadditional
The U.S. government issues a coupon bond with the coupon rate 5% and the maturity 20 years. The bond with a face value of $1000 is sold at a present value of $900. Calculate the yield to maturity of the two bonds. Are the two bonds sharing the same y..
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