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Suppose that you are interested in comparing the costs of producing inpatient services at Saving Grace Hospital with those at ACME Hospital Further suppose that the two hospitals annual admit about 24,000 and 32,000 patients, respectively at average short-run total costs per admission of roughly 11,000 and 12,000. A. Why may these average STC figures not represent the economic cost of providing inpatient services at these two hospitals? Explain fully. B. Using cost theory as presented in the text, identify and fully discuss four other factors that might
Rain spoils the strawberry crop, the price raises from $4 to $6 a box, and the quantity demanded decreases from 1,000 to 600 boxes a week
Suppose you are in charge of a toll bridge that costs essentially nothing to operate. The demand for bridge crossings Q is given by P= 15 - 0.5Q. How many people would cross the bridge if there were no toll? What is the loss of consumer surplus assoc..
You are a manger that oversees 8 employees in a financial sales institution where producing has been slowly declining over the last 6 months. It has been determined that the decline in sales is not caused by an external environment factor, but an int..
Two companies are deciding at what point to enter a market. The market lasts for four periods and companies simultaneously decide whether to enter in period 1, 2, 3, or 4, or not enter at all. Thus, the strategy set of a company is {1,2,3,4,do not en..
The demand for future goods is derived from consumers’ utility maximization problems over current and future consumption goods. It is the present value of future consumption goods that enters into the budget constraint of a consumer’s utility maximiz..
The Prestige Office Equipment Company produces and sells different types of office furniture. One of the important items it sells is a high quality desk. Assume the variable unit cost per desk in the coming year will remain the same. Evaluate the pro..
Mary has two sources of income, let her non - labor income be represented by V dollars per year. He r labor income comes from working h hours per year in the labor market at wage rate of w per hour. Assume that her utility is a function of composite ..
Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $60,000 and her store made $130,000 in profits (not counting payment to her top manager). She suspected t..
Patricia is researching venues for a restaurant business. She is evaluating three major attributes that she considers important in her choice: taste, location, and price. The value she places on each attribute, however, differs according to what type..
How are the forecasts likely to be inaccurate? What do you think is driving inaccuracy? How might this problem be solved?
Racial also Ethnic Groups defines culture of poverty as a way of life which involves no future planning, no enduring commitment to marriage
Suppose coal is only to be extracted over two periods. The inverse demand for coal is estimated to be P = 300 - Q, where P is the price of coal and Q is the quantity demanded. The marginal cost of extraction is given by MC = 2Q. What level of extract..
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