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A drug patent gives a pharmaceutical firm a monopoly. Draw and label the supply and demand curves for a drug. Then demonstrate how having a monopoly changes that equilibrium. How does this impact consumer surplus? What actions can the government take to ensure a consumption, Q, that is closer to the equilibrium Q*?
Which leads to higher interest rates, which leads to higher output? Which leads to higher inflation? Which represents a more hawkish Fed? Which represents a more dovish Fed?
Suppose a household's annual take-home pay in 1951 was $8,320. Elucidate what would be an equivalent home pay in 1982.
q1. discuss the two views of government intervention in a market-based health care system. illustrate role does the
If the price elasticity of soap is 2.5, and if the price goes up from $2.00 to $2.50, what will be the effect on the demand for soap? Hint: Calculate the percentage change in price and then plug into the elasticity formula: E = % change in quantity d..
Cournot Duopoly). Suppose there are two firms, Firm 1 and Firm 2 in a market. Each firm simultaneously chooses a quantity of output to produce (q1 and q2). Total market output is given by Q = q1 + q2. What is the deadweight loss in this market?
The nation of Upstandia uses kroner for money and its tax code is such that a person making 100,000 kroner per year pays 40,000 per year on income taxes; a person making 200,000 per year pays 70,000 kroner per year and a person making 300,000 kroner ..
Present a thorough analysis of the inverse relationship between inflation and unemployment reflected by the Phillips curve. Describe the importance of expectations and how they affect the actual relationship between the inflation rate and the unemplo..
What is the amount of equal annual deposits needed in years 7 through 14 to provide for a series of annual withdrawals of $2400 beginning 9 years from now and increasing at the rate of 2% per year through year 19? Assume an interest rate of 5% per ye..
This week, we discussed the relationship between social structure, stratification, and health quality. In this exercise, you are expected to reflect upon your maturation process and demonstrate that you have considered the demographic characteristics..
Under perfect competition, at the profit maximizing level of output:
Explain the difference between the short-run and long-run Phillips curves. What do they imply about the tradeoff between inflation and unemployment in the short run and in the long run?
What is the present value now (t =0) of the total revenue if the interest rate of 17% per year? specify answer to nearest cent.
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