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A number of professional associations, such as the American Medical Association and the American Bar Association, support regulations that make it more costly for their members (for example, doctors and lawyers) to practice their services. While some of these regulations may stem from a genuine desire for higher-quality medical and legal services, self-interest may also play a role. Explain.
What are some of the unintended consequences of efforts to regulate the illicit global economy? How can states more effectively reduce the negative consequences of black markets?
The cost of equity is 12% and the cost of debt is 7%. The tax rate is 30%. What is the company's weighted average cost of capital (WACC)?
Suppose you bought a house and took out a mortgage for $50,000. The interest rate is 8%, and you must amortize the loan over 10 years with equal end-of-year payments. Create a graph that shows how the payments are divided between interest and princip..
Assume that a firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500.
Mary Carey, a clever 3360 student, has borrowed $125,000 at 8% from her parents. She is asking Dragon Kevin for $75,000 to start her own business. Kevin requires that the business make a 12% rate of return. If they both agree, what is Mary's before-t..
Navigate to the threaded discussion below and respond to the following: Choose two of the Key Concepts covered in the Chapters 1-4 readings (listed at the end of each chapter) and provide an explanation of each of the concepts in your own words. Your..
Consider a subway company whose cost function is given by C(T) - 1000 + T. Due to the government regulation, this company must set the fare per passenger at the marginal cost (MC pricing). Is this pricing efficient? Would this company run the busines..
Holding other factors constant, if 3D-printing technology allows factory workers to manufacture more products per hour, then the real wages of factory workers will ______ and employment of factory workers will _____. An increase in the demand for chi..
What are the mean and variance of the enw random variable Z under the independence assumption between X and Y?
An insurance company is reviewing its current policy rates. When originally setting the rates they believed that the average claim amount was $1, 800. They are concerned that the true mean is actually higher than this, because they could potentially ..
Solve the following equations for equilibrium price and quantity. Demand Curve: Qdx = 10 -2Px Supply Curve: Qsx = 5 + 3Px
R/C Aero Specialties produces unmanned aerial vehicles (UAVs), or drones, for commercial and recreational uses. The company has updated its design to compete with Fuji Enterprises, but its production costs for this new model require a retail price th..
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