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Two hospitals want to merge. The price elasticity of demand is 0.20, and each clinic has fixed costs of $100,000. One clinic has a volume of 9,200, marginal costs of $70, and a market share of 3 percent. The other clinic has a volume of 15,800, marginal costs of $80, and a market share of 6 percent. The merged firm would have a volume of 18,000, fixed costs of $80,000, marginal costs of $60, and a market share of 6 percent.
What are the total costs, revenues, and profits for each clinic and the merged firm? How does the merger affect markups and profits?
This year before a major earthquake adversely affected the production capacity in Nepal, the country's economy was working at its capacity level and inflation and growth rates were following their normal and stable paths at 2% and 4%, respectively. W..
Discuss why a corporation would want to enter a country with a high political risk and benefits that would need to be present to outweigh risk. Provide specific examples to support your response.
Trace through the circular flow model in Chapter 6. What is the point of the circular flow model, what are some leakages and injections into the circular flow model, and how are the leakages and injections related to the circular flow?
A typical university football program requires alumni to join one of several booster clubs (each club gets seats in different parts of the stadium) before the person can buy season tickets. What has this got to do with consumer surplus?
Discuss the point price elasticity of demand for Tweetie Sweeties. Discuss the point advertising elasticity of demand.
A $25,000 bank loan is to be repaid in equal yearly payment over 15 years at an effective annual interest rate of 7%. You did the calculation and found that your annual payment is $2745. What is the unpaid principal after you made your 8th payment?
In January 2001, $1 was equal to 1.06 euro. By January 2012, $1 was worth 0.76 euro. As a result of the change in the value of the dollar:
"If we allow free trade in the automobile industry, some automobile workers will lose their jobs. This unemployment will make society worse off." What advantage of free trade does this argument overlook? How might the unemployment be alleviated at lo..
With everything else being equal, if the price level in the USA increases relative to foreign countries, then which of the following happens? If the real exchange rate between the USA and Japan is 0.35 then it means. If foreign countries increase the..
What are the functions of money? What is the difference between fiat money and commodity money? What are the two responsibilities of the Federal Reserve? Please explain how the three traditional tools of monetary policy work in terms of expansionary..
The economy is made up of C and I and is currently at full employment. If consumption is $5 trillion while savings is $1 trillion, what is current investment according to the Classical economists? Suppose consumption falls by $500 billion what will h..
Illustrate what are the main characteristics of a perfectly competitive market that cause buyers and sellers to be price takers.
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