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Surgery Inflation Rates
Two similar surgeries, breast reconstruction and breast augmentation, have different prices. Breast augmentation is cosmetic surgery not covered by health insurance. Patients who want the surgery must pay for it themselves. Breast reconstruction following breast removal due to cancer is covered by insurance. The price for one of the surgeries has increased by about 10% each year since 1995 while the other has increased by only 2% per year. Which of the surgeries has the lower inflation rate?
Show that, with a linear demand curve, the imposition of a per-unit tax on a monopoly will cause price to rise by less than the tax. Would this be true for a constant elasticity demand curve?
Elucidate at what price also quantity will marginal revenue be zero. At what price and quantity will marginal revenue be maximized.
If a monopolist is creating a level of output at which demand is inelastic and the firm is not maximizing profits.
Describe the effects of monetary policies on the economy's production and employment.
Discuss briefly what you think the way in which the HDI is constructed. (Briefly means no more than five lines of text. Excesses are severely penalised.)
Find the following: First solve this problem using an Excel spreadsheet approach and then do the problem using the optimization procedure; compare the answers for the two methods.
The industry will also incur expenses in the amount of $150,000. Explain how many shares must the industry sell to net $20 million after underwriting and flotation expenses.
Illustrate what did the USA do like other countries as well after the first oil price shock.
A large rear dump truck working in a coal mining operation under good conditions has a present purchase price, compute the estimated repair cost per operating hour.
For a perfectly competitive firm the price is $2 per unit. At this price the firm is producing and selling 10,000 units. It costs $1.50 to produce the last unit. Should the firm produce more? Less? Why?
Limit your reaction to stratigies which can work and reasons for their success.
All semester we have been tracking the economy to discern where it currently resides along the business cycle and where it seems to be headed over the next 6-9 months.
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