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Suppose, if ill, your demand for health services is summarized by the demand curve Q = 50 – 2P, where P is the price of services. How many services do you buy at a price of $20? Suppose that your probability of illness is 0.25. What is the actuarially fair price for health insurance?
What feature(s) of Medicare would cause an economist to say that “Medicare stinks as insurance”? Medicare supplement insurance is available from the commercial market and most commonly covers ‘up-front’ deductibles and least commonly covers “high-end..
What is the amount A in actual dollars equivalent to A’ = $1,000 in constant dollars? Please provide step by step detail
You just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in determining prices and what products to supply, so you decide to investigate this concept. You call your friend, an econo..
You are a builder of fiberglass boats in very competitive markets. Fiberglass is derived from crude oil which has recently risen in price. Using diagrams, show what happens to the cost curves of your firm and to the market supply curve due to the inc..
What price and quantity will result once the copyright expires and competition emerges in this market. Elucidate your answer.
Discuss the importance of the Hawkins-Simon conditions in input-output analysis - what values of x will be the function be discontinuous?
Two firm’s identical production costs, how do they maximize profits, how does this change if price discrimination is feasible or if the two firms have different costs of productions?
Why should marketing be concerned with disposal of a product as the last stage in the consumer decision process?
Why does the government grant patents to investors? Why does the government give monopoly power to utility companies?
Explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 1–7% regularly. Explain the difference between active and passive monetary policy. Suppose the economy is in long-run equilibrium, with real GDP at $1..
Fill out the following table for the short run for K=8. MPL refers to the marginal product of labor; MRPL refers to the marginal revenue product of labor. Using the rule MRPL = pL, find the profit-maximizing number of workers for the firm to hire fro..
In the early 1980s, Michael Milken developed the low-grade bond (or junk bond) for corporate finance. Throughout the 1980s, these were used by firms to finance leveraged buyouts (purchasing a controlling interest in a company’s shares using money rai..
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