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True or False: If demand for medical care is perfectly inelastic, hospitals and physicians are able to charge any price (up to some maximum) without losing any patients. Explain your answer using the model in Dranove & Satterthwaite (1992, 2000).
what will be price of wheat, how much total wheat will be demanded and how many wheat farms will there be.
Suppose the government increases G to 1250. Compute private saving, public saving, and national saving and the new equilibrium interest rate.
Question 1: Two firms compete in an undifferentiated Bertrand market. Suppose that the firms face a demand curve given by P = 80 - Q and both firms have constant marginal cost of 60.
Christine bought a BMW when she came to LA as a County Judge. The BMW was purchased by taking a loan that was to be paid off in 20 equal, quarterly payments. The interest rate on the loan was 12% per year with quarterly compounding. What was the amou..
Explain how the reduction in supply from the reduced fishing waters will either increase or decrease consumer surplus and producer surplus.
Assume a person is working 40 hours per week. If the wage rate is greater than the person’s marginal rate of substitution (MRS) at 40 hours, he or she would maximize utility by working more hours. Persons with more education will be able to earn (on ..
What is the difference between the Federal Reserve’s “discount rate” and the “federal funds” rate? Why is the discount rate in the US not as important in financial markets as the federal funds rate?
Which of the following activities are prohibited by the Clayton Act when they lead to less competition?
Explain why a subsidy may provide import-competing producers the same degree of protection as tariffs or quotas but at a lower cost in terms of national welfare.
Suppose in Fiscalville there is a 5 percent tax on the first $10,000 of income, but a 15 percent tax on earnings between $10,000 and $20,000 and a 25 percent tax on income between $20,000 and $30,000. Determine your marginal tax rate. Determine your ..
Explain how they will help to improve the GDP as a tool for measuring the well-being of a nation.
Currently, a fast-food firm has a monopoly in the university student union. The monopoly pays the university $75,000 a year in order to maintain it. The firm earns an economic profit of $290,000 per year. The manager of the first firm calls the unive..
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