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The pharmaceutical industry has been subject to considerable regulation in bringing drugs to the marketplace. Discuss the benefits and costs to society from such a policy?
Which of the following is critical for a firm adopting a long-term cost-reduction strategy?
Explain the effect of a discretionary cut in taxes of $40 billion on the economy when the economy’s marginal propensity to consume is .75. How does this discretionary fiscal policy differ from a discretionary increase in government spending of $40 bi..
How does the government decide on the amount of pollution to allow? What are the potential costs and benefits associated with the regulation of pollution? What are the potential problems associated with employing outright regulation to deal with poll..
A clinic has incremental costs per case of $10 and overhead costs of $100,000. It faces a price elasticity of demand of -2. What is the clinic’s profit-maximizing price? (Round to the nearest whole dollar)
Why might M1 and M2 grow at very different rates during a given year? If excessively rapid growth in the money supply is associated with all inflationary episodes, why do central banks ever allow the money supply to increase so rapidly?
Illustrate the monopoly solution and perfectly competitive solution in a clearly drawn graph. Calculate the deadweight loss due to monopoly.
q.consider the following cobb-douglas production function for the bus transportation system in a particular cityq
Janet Elliot just turned 20 and received a gift of $20,000 from her rich uncle. Janet plans ahead and would like to retire on her 55th birthday. She thinks she'll need about 1$million saved by that time in order maintain her modest lifestyle. assume ..
How did invention of crack cocaine transform the urban street gang. According to the data cited in this chapter, civil rights laws and a shift in the attitudes in the United States regarding race helped to improve the status of black society. How d..
Explain how each of the following changes the money supply of the local economy. Discuss two limitations of the consumer price index (CPI) as a measure of the cost of living.
Suppose that there are two markets, given by the following demand curves, q1(p1) and q2(p2); and a monopolist with cost function c(q1; q2). Set up the monopolist's profit maximizing problem if it charges a uniform price in both markets.
The selling price of a house is $1,375,000. You have enough money for a 15% down payment with the balance authorized at 4% annual compounded monthly for 30 years. How much will the monthly payments be? How much interest will be paid over the term of ..
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