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The inverse demand for health care services is P = 500 - 40 Q where P is the price and Q the quantity of health care. The price of services is $100 but insurance covers 80% of it. What is the efficient quantity of health care? What is the DWL when people use insurance? Suppose now that demand is Q = 10 (This is a vertical line).What is the DWL in this case?
You are in charge of making recommendations based on economic forecasts to upper management of your firm, which produces widgets, and employs 2,500 workers. What would you look for in terms of leading indicators (discuss at least three indicators), a..
The markets will over produce goods that have external costs because
Use the characteristics/features of the different market structure to determine which market structure to classify your chosen firm.
The utility function of a worker is represented by U(C,L) = C×L. Suppose this person currently has 100 hours of leisure and $1200 in consumption in a given time period. What must the worker’s hourly wage rate be if she is maximizing her utility?
An engineer decides to set aside money in a 529 Plan for his newborn's college education. He estimates that the child's needs will be $48,000 on her 18th, 19th, 20th, and 21st birthdays. If he plans to make uniform deposits starting 3 years from now ..
Bank of Japan launches negative interest rates Feb 16, 2016 Central bank encouraging banks to lend, businesses to invest and savers to spend. What are the Central bank’s objectives of launching negative interest rates? Explain carefully using diagram..
Using the concepts you have learned throughout this course, explain why sports economists believe ticket prices are too low. Incorporate as many of the major themes we have covered as applicable. As a minimum, you will want to include the concepts el..
How would you hedge your exposure with forward contracts and option contracts and what will be the dollar cost of hedging with forward contract?
Classify each of the following industries or organizations as an oligopoly, a monopoly, or being monopolistically or perfectly competitive: a. Athletic shoes b. Restaurants c. Watches d. Aircraft e.Department of Motor Vehicles f.Aircraft g.Ice cream ..
First degree price and third degree price discrimination work to increase a firm's profits by more accurately matching willingness to pay to the marginal costs of production. First-degree price discrimination works to increase a firm's profits by con..
Determine how the following affects the slope of the output demand curve, and explain your results: The marginal propensity to consume increases. The intertemporal substitution effect of the real interest rate on current consumption increases.
You can sell 100 pet chias per week if they are marked at $1 each, but only 40 each week if they are marked at $2/chia. Your chia supplier is prepared to sell you 30 chias each week if they are marked at $1/chia, and 70 each week if they are marked a..
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