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An individual’s demand for physician office visits per year is Q = 10 (1/20)P, where P is the price of an office visit. The marginal cost of producing an office visit is $120. (a) Individuals pay full price for obtaining medical services, how many office visits will they make per year? (b) If individuals must pay only a $20 copayment for each office visit, how many office visits will they make per year? (c) What is the deadweight loss to society associated with not charging individuals for the full cost of their health care? Draw the supply- demand graph and mark the deadweight loss.
During the recession of 2001, despite the reduce in aggregate Demand the price level was essentially stable. That of the following is a reason for this.
A consumer receives income y in the current period, income y in the future period, and pays taxes t and t' in the current and future periods, respectively. The consumer can lend at real interest rate r. the consumer is given two options.
In the long run, an economy's level of output
q.a new production technology for making vitamins is invented by a college professor who decides not to patent it. thus
Trace through the effects a minimum wage might be expected to have, for two cases: the demand for output produced by workers is perfectly elastic. the demand for output is not perfectly elastic
Now discuss the fact that deflation is the central bank's worst nightmare. Make sure you refer to a real interest rate of -2.68%. Why is this environment such a nightmare for the central bank and monetary policy?
Assume that inflation is currently 4% but the Fed’s inflation target is 2%.
Using accelerated depreciation rather than straight line would normally have no effect on a project's total projected cash flows but it would affect the timing of the cash flows and thus the NPV.
q.the us government could not pass its annual budget. as a result the us government has partially shut-down roughly
q.airjet best parts inc. would like to issue 20-year bonds to obtain remaining funds for the new mexico plant. the
q1. sallys firm produces granola bars with a fixed cost of 10 this cost is already sunk. her variable cost function is
A bulk material hauler purchased a used dump truck for $50,000. The operating cost was $5,000 per month, with average revenues of $7500 per month. After two years, the truck was sold for $11,000. The rate of return was closest to:
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