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Suppose that a new entrant comes late to the bidding process, and plans a super competitive bid of $13,900 per case. This is a new orthopedic institute that is made up of several orthopedic surgical groups. They have their own diagnostic facilities and can bring all of the rehabilitation assets that they’ll need. They also have a direct relationship with a device manufacturer and believe they can cut the cost of devices used down to $2,500 per case. They only thing they lack are the actual surgical facilities. They offer to lease OR time from each of the hospitals at $2,400 per case. Are the hospitals likely to accept that offer? What happens to the economic profit of each hospital if they do/ do not accept the offer?
What are the costs of inflation? Which of these costs do you think are most important for the U.S. economy? What are your shoe leather costs of going to the bank? How might you measure these costs in dollars? How do you think the shoe leather costs o..
In the article on China holding $3 trillion in dollars, for every dollar it holds in reserves, it prints
You have your eyes on a new automobile costing $25,000. If you wrote a check for the $25,000, you could drive off in your new car. However, you don’t have it and must finance $20,000 through the dealership at 15%/year/month over a 5-year period. What..
How many homes should be built in a new residential area. The firm has some monopoly power in its local market. Its demand is estimated to be Q = 10 - 1/6 P. What is the revenue-maximizing price and quantity? Explain. What is the profit-maximizing pr..
Profit max level of output. Quantity firm will minimize average total cost. Illustrate at what price will y shut down.
When price controls are imposed on any product market,
Marvin has the utility function U(N, B) = 4N1/2 + B. If Marvin is initially consuming 64 units of nuts (N) and 10 units of berries (B), then what is the largest number of berries that he would be willing to give up in return for an additional 17 unit..
If the demand for used cars decreases after the price of a new car fallls, used cars and new cars are
Interest on the public debt is included as a part of government purchases in the determining GDP may arise since.
Describe a time in your life where you outperformed your expectations in a class or under-performed in relation to your expectations. What did you do that helped you succeed? What could you have done that would have made your performance better?
A man is planning to retire in 20 years. He can deposit money for his retirement at 6% compounded monthly. It is estimated that the future general inflation rate will be 4% compounded annually. What deposit must be made each month until the man retir..
Suppose the MPC is an economy is 0.9. The APC is initially 0.95 and disposable income is $4 billion.
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