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Economists often assume that insurers set premiums (nearly) equal to the AFP for that plan. Is that an accurate assumption? Is a higher “load” on insurance premiums necessarily a bad thing for consumers? When might a higher load be a sign of problems in the insurance market?
The Profit Maximizing condition for firms facing perfect competition is 1) Marginal Revenue = Marginal Cost and 2) Marginal Cost must cut through Marginal Revenue from below. Market structure is measured in the ability to set the price of the output...
Calculate and interpret the own price, cross price, and income elasticity of demand.
The version of Okun’s law assumes that with no change in unemployment, real GDP (RGDP) normally grows by 3 percent over a year. If RGDP last year was $12,375 and the unemployment rate fell by 1 percentage point from last year to this year, what would..
When a restaurant stays open for lunch service even though few customers patronize the restaurant for lunch, What are the principles is (are) best demonstrated.
The supply and demand curves are: Qs = - 800 + 15p and Qd = 3200 - 25p. Solve for the market equilibrium. Now suppose a tax of $20 per unit is imposed on consumers. What are the new equilibrium quantity, buyer's price and seller's price? What is tax ..
q. consider the following two statements1 if the government raises marginal income tax rates on society and then
How elastic/inelastic is the demand for Netflix services at the time of the price change? Do you think that their plan to increase prices was a good idea? How has Netflix fared since this decision to increase prices?
The muffler on your car suddenly needs repair, also there are only two automobile repair shops in town.
A firm scaled up its operation by increasing all inputs by 100%. If the firm experienced 150% increase in the output, the firm's long-run average cost exhibits:
The Fed announced in April 2011 to it will continue the ‘quantitative easing' by completing the purchase of government securities by the amount of $60 billion.
Jose rents office space for $20,000 per year. He uses the office to fill out tax returns for 1
Discuss the concepts of marginal product and marginal cost. Also discuss the importance of trends in these and other economic measures and how time-series analysis (trend analysis) can be used or misused to make important management decisions
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