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One thousand Patients called up Dr. Kalikorn and asked him to perform a new surgical procedure. Dr. Kalikorn booked all 1,000 and told them that he could perform twice as many procedures, if only he had more patients. What is his quantity supplied?
Read Chris Tilly, “Shaking the Invisible Hand” (Real World Micro, article 1.2). What is the “Invisible Hand” theory? What are the political implications? List some of the assu
In the northeast US and in eastern Canada, many citizens heat their homes with heating oil. Suppose you are one of these people, and you are expecting a cold winter, so you ar
The demand function for a transit system can be represented by a straight line connecting fare per person and ridership. Observations made on this system resulted in the follo
In this module, it is demonstrated that sometimes extensive diseconomies of scale, say, due to high transportation costs, would require that the firm produce its product in a
A construction firm can achieve a $15,000 cost savings in Year 1 and increasing by $2,000 each year for the next 5 years by upgrading some equipment. At an interest rate of 15
A stock is expected to pay a dividend of $2.50 per share indefinitely. The stock is expected to generate a return of 8 percent in the foreseeable future. Based on this info
The following, adapted from a merger case in 2014, were the approximate U.S. market shares of different cigarette companies: Altria, 47 percent; Reynolds American, 26 percent;
The table below shows information on demand and supply for boxes of 1 dozen water glasses. The lobbyists for the water glass producers persuade the government to establish a p
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