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Janet Gilbert is director of a lab. She has some extra capacity and has contracted with some small neighboring hospitals to run some of their lab tests. She has recently had a study conducted and has determined that her costs for these contracts are $50,000, of which $7,000 is the variable cost of supplies. The rest is non avoidable fixed cost. She currently charges an average of $30 per test. She is thinking of lowering her price by 20 percent in hopes of raising her current volume of 20,000 tests by 25 percent. If she does so, she expects her variable cost per test will go up by 5 percent. Determine the current and predicted (a) revenues (b) variable costs, and (c) total contribution margin and product margin. What should she be recommended to do? Why?
Based on Ruhmís paper on recessions and health, what are the age group where mortality has the strongest percentage response to an increase in the unemployment rate? What are Ruhmís conclusions about potential mechanisms that could explain the negati..
Elucidate what happens to the official measure of GDP in each of the following situations.
Government data that computes averages, such as the consumer price index, are applicable to everyone.
Choose an industry or market* and, based on the material in the last few chapters, analyze what type of market structure best describes your chosen industry/market. (i.e., is your industry monopolistically competitive, a monopoly, an oligopoly, or a ..
The country of Alcazar has been growing at an impressive pace for the last five years. With improvements in technology, many industries have recorded remarkable growth in productivity. The health sector which has the lowest level of productivity empl..
She could also use her entire budget to buy 3 uglifruits and 8 breadfruits per day. The price of uglifruits is 8 yen each. How much is Natalie's income per day?
If you were the CFO of a company that had to decide on hundreds of potential projects every year, would you want to use sensitivity analysis and scenario analysis or would the amount of arithmetic required take too much time and thus not be cost-effe..
q1. if capital is measured on the vertical axis and labor is measured on the horizontal axis the slope of an isoquant
ou are going to buy a new car worth $24,500. The dealer computes your monthly payment to be $514.55 for 60 months of financing. What is the dealer’s effective rate of return on this loan transaction?
A competitive firm uses two variable factors to produce its output, with the production function y = min{x1/2, x2}. The price of factor 1 is $4 and the price of factor 2 is $5. Due to a lack of warehouse space, the company cannot use more than 20 uni..
For what values of Z does Heidi accept two independent plays of the bet? iii) is is possible for Heidi to reject the single bet but accept the aggregate bet?
A series of quarterly payments of $750 for 20 years is economically equivalent to what present sum, if the quarterly payments are invested at an annual rate of 12% compounded quarterly?
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