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Your marketing department estimates that Medicare urology visits equal 5 − (1.0 × C ) + (−6.5 × T O ) + (5 × T R ) + (0.01 × Y ). Here, C denotes the Medicare copayment (now $20), T O is waiting time in your clinic (now 30 minutes), T R is waiting time in your competitor’s clinic (now 40 minutes), and Y is per capita income (now $40,000).
a. How many visits do you anticipate?
b. Medicare’s allowed fee is $120. What revenue do you anticipate?
c. What might change your forecast of visits and revenue?
The model of the market for loanable funds shows that an investment tax credit will cause interest rates and investment to rise. Yet our model of how investors behave claims that higher interest rates lead to lower investment. How can these two oppos..
Calculate the Income elasticity of Demand first and then give your explanations for both questions
The Cole family owns a house with an alarm system that they activate whenever they leave the house. Recently, the Cole family purchased homeowner's insurance that fully covers all losses. After purchasing the insurance, family members haven't been us..
Illustrate what is the name of this type of industry. What is firms and concentration ratio.
When the Fed raises the target for the federal funds rate, it:
A Nash equilibrium is said to occur when,
How would you determine the economic profit of a company? Should managers maximize economic profit or accounting profit? Why?
Explain how firm could employ computed elasticities in its pricing and marketing decisions. Which of se variables have statistically significant relationships with sales.
How does price discrimination help cover fixed costs?
One of the limitations of Five Forces is that: Industries with high barriers to entry. Low cost strategies are usually found in industries where. Cigarettes - Price Elasticity of demand = - 0.67
Suppose investment I is 900, government purchases are 800, and net of exports are 300. What is the spending balance? What is the GDP multiplier?
What is the probability that more than 200 cars will require service work in a particular month? B. What is the probability that fewer than 175 cars will need service work in a given month?
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