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If the law end patent protection (in the U.S.) if the price of a drug was above the median price charged in the next seven wealthiest countries. Describe the implications we should expect if this bill were to become a law. Would consumers be better or worse off?
A security system company’s total production costs depend on the number of systems produced according to the following equation: Total Costs = $10,000,000 + $2000*quantity produced. What is the average total cost of production when 20,000 units are p..
Type in the amount of the surplus at price P = 40. Once again, just enter in the number, and do not put in any other text or symbols.
A 30-year mortgage for $140,000 is issued at a 9% nominal interest rate. What is the monthly payment? How long does it take to pay off the mortgage
A transit project is being evaluated. This project is expected to cost $10M to construct and have a life of 30 years. The benefits associated with the project is $1.2M per year; however the disbenefits associated with the project is $300,000 in year ..
It is expected that the price of a bushel of wheat will increase in one month. This belief will result in
Calculate the constant debt-GDP ratio that the country can achieve if the country runs a primary budget deficit of 3%. Is this debt-GDP ratio stable.
What determines who pays larger fraction of the tax, the sellers or the buyers? Explain with the use of a diagram. Show on the same diagram in part b the deadweight loss that results from the tax.
Recall the formula that states that $V = 1/P, where V is the value of the dollar and P is the price level. If the price level falls from 1 to 0.75, what will happen to the value of the dollar?
The firms current yield to maturity on debt is 6% and the debt pays a 4% coupon. current tax rate equal 41.4%. Compute the after tax cost of debt.
Other things being equal, the markup above marginal cost that a monopolist charges will be:
For any given level of output:
During recessionary periods
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