Computational and analytical questions

Assignment Help Macroeconomics
Reference no: EM131083144

Computational and analytical questions

You must show and explain your work

1.   You are the manager of the surgery department at a hospital which serves mostly Medicare patients. The hospital performs 1,000 surgical operations per year using the traditional method. The Medicare payment for a surgical operation using the traditional method is 2,250 dollars and the cost to the hospital per operation is 1,750 dollars. 

a) Compute the total revenue, the total cost, and the profit at the end of each year if the hospital continues to use the traditional method for surgical operations.

b) You have the option to purchase a Robotic Surgery Machine to perform the surgical operations. The Medicare payment for a surgical operation using the Robotic Surgery Machine is 2,500 dollars and a surgical operation using a Robotic Surgery Machine has a lower cost per operation of 1,500 dollars.

i) Compute the total revenue, the total cost, and the profit at the end of each year if the hospital performs the surgical operations with the Robotic Surgery Machine.

ii) For simplicity, assume the life of the machine is three years. In addition, assume the machine has a cost of 1,250,000 dollars and the opportunity cost of funds (interest rate) is 10% per year. Should the hospital buy the machine?

2.   Assume the market for a commodity is described by the demand and supply functions

Demand:

 

Supply:

 

a) Determine the equilibrium price and quantity in this market.

b) Derive the inverse demand and supply functions, draw a graph to illustrate your answer, and compute the consumer surplus and the producer surplus.

3. You are the manager of a business in a competitive market and your production technology is described by the total cost function

In addition, assume the market price is p = 15 dollars.

a) Determine the optimal quantity to produce and compute the profit of your business.

b) Assume you have the opportunity to make an investment which would improve your production technology and would result in the new total cost function given by

i) Determine the optimal quantity to produce with the new technology and compute the profit of your business.

Assume the business will operate for only one period, either with the old or the new technology. If the cost of the investment to improve your technology is 300 dollars, should you make the investment?

Reference no: EM131083144

Questions Cloud

Calculate the theoretical ac voltage gain of the first stage : Calculate the theoretical AC voltage gain of the first stage. The DC analysis should provide the operating point of Q1, Q2   and the collector, emitter and base voltages of transistors Q1 and Q2
Calculate the standard deviation of unknown concentration : Calculate the standard deviation of the unknown concentration and its 95% confidence interval assuming that each of the data in the table was obtained in a single experiment.
Oil depletion assuming renewable substitute exists : Graphically, show the time path of prices, MC, and resource consumption for oil depletion assuming a renewable substitute exists and MEC increases as extraction increases. How has the advent of fracking changed this model, if at all? Explain. Why is ..
Governments of developing countries : National Income statistics are used by governments of developing countries.
Computational and analytical questions : Compute the total revenue, the total cost, and the profit at the end of each year if the hospital continues to use the traditional method for surgical operations.
What is the sinking fund factor : You want to set up a college saving plan for your sister. She is currently 10 years and will go to college at age 18. You assume that when she starts college, she will need at least $100,000 in the bank. How much do you need to save each year in orde..
What is present amount worth and future amount worth : What is present amount worth & future amount worth? (Use graphs and equations) Suppose you are offered the alternative of receiving either $3,000 at the end of five years or P dollars today. Because you have no current need for the money, you would d..
How does public relation professional get the most from blog : How does a public relations professional get the most from a Twitter feed? Why is it an advantage for a public relations professional to create hashtags on Twitter?
Find the average number of plates for the column : Find the average number of plates for the column.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd