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Question: Antibiotic resistance is a real problem that we are currently confronting. One of the most asked questions is "Why don't pharmaceutical companies make new antibiotics?" There are two reasons 1) antibiotics are not big profit engines and may not pay for development, patents, and marketing 2) there are legitimate scientific challenges to antibiotic development. Knowing this do you think the government should make pharmaceutical companies develop new antibiotics? Should we at least subsidize the development?
Assume that Stonington uses a flat fee pricing system for trash services. Under this scenario, find the flat fee equilibrium quantity (QFF). Compare the flat fee equilibrium to the competitive equilibrium (QC) and the efficient equilibrium (Q..
Two random variables X and Y have the probability functions: A joint probability is:P(X = 2 and Y = 1) = 0.2. Find the conditional probability function.
How can society best transform scarce and limited economic resources with its given state of technology? How does neoclassical economics approach the issue?
Given the asymmetric information situation a prospective employer faces in hiring from this labor pool, what is the average salary that they would pay without a signal?
Suppose that you own a car wash and that its total cost function is: C= 20 + 2Q + .3Q^2, where C = total cost (in dollars) per hour and Q is the number of cars washed per hour. You receive 5 dollars for each car washed. What is the optimal number of ..
The following table gives capital and labor requirements for 10 different levels of production.
What was the real interest rate in? 1975? How would the purchasing power of your savings have changed over the? year? ?(Note: Be careful not to round any
Wade and Marti are thinking about swapping services. If Wade works one hour he can type two pages of a report or clean and gap four spark plugs. Marti, working.
Now suppose the public good technology has constant returns to scale, at a rate of two units of the private good per unit of the public good. What is the Walrasian equilibrium price ratio? Are the Walrasian allocations Pareto efficient? Explain
The head of the accounting department at a major software manufacturer has asked you to put together a pro forma statement of the company's value under several possible growth scenarios and the assumption that the company's many divisions will rem..
Total assets are $1,450, fixed assets are $790, long-term debt is $750, and short-term debt is $300. What is the amount of current assets?
The manager of EverClean finds two output levels that appear to be optimal. Show what these levels of output are, and explain which one is actually optimal.
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