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Your pharmacy provides services to Medicare and PPO patients. You estimate a price elasticity of demand of -2.2 for Medicare patients and -5.3 for PPO patients. Your marginal and average cost for dispensing a prescription is $2. What is the profit-maximizing dispensing fee for Medicare and PPO patients? Why might the price elasticities of demand differ?
What is the advantage of charging a fee in queuing?
U(X,Y)=X.6Y .4 , MUX=.6X -.4Y .4 MUY=.4X .6Y -.6 PX=3 PY=4 I=60 (a) Calculate the MRSX,Y. (b) Write the budget constraint. (c) What is the consumption bundle to maximize the utility level? What is the maximum utility level?
The GenaCam Stores have two branches. Advertising is a major component of Cost of Goods Sold for each store. You have information on the range of advertising expenditures over a long period of time for each group of stores. Which of the two stores ha..
Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The interest rate is 10% per year
Assuming that prices are set competitively (i.e. set equal to MC of producing services), show in a supply-demand graph how we could measure the “efficiency loss” (or deadweight loss) associated with health care over-consumption.
The nation of Wrexington utilizes the same method to Compute the unemployment rate as the U.S. Bureau of Labor Statistics utilizes. From the data below, Compute Wrexington's unemployment rate.
In Managerial Economics, Applications, Strategy, and Tactics, if contract promises were not excused because of acts of war, would the clearing and settlements clients of Bank of New York change their behaviour
Assume that Ms. Thompson is currently exhausting her money income by purchasing 10 unites of A and 8 unites of B at price $2 and $4 respectively. Elucidate what these data suggest about Ms. Thompson.
A portfolio has an expected annual return of 15.7 percent and a standard deviation of 19.6 percent. What is the smallest expected loss over the next calendar quarter given a probability of 1 percent?
Suppose a consumer's utility function is given by U(X,Y) = X*Y. Also the consumer has $288 to spend, and the price of X, Px=16, and the price of Y, Py=1: How much X and Y should the consumer purchase in order to maximize her utility? How much total u..
Even though China's has been better than before to take up its global responsibilities, why has its performance been mixed in the view of other countries?
Consider an economy whose production function is Y=Kθ(AN)1-θ, with A=4(K/N). Suppose that it has a saving rate of .1, a population growth rate of .02, and an average depreciation rate of .03 and that θ=.5. What are the growth rates of output and capi..
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