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Hospitals are facing unprecedented financial challenges from entrepreneurial physician initiatives that are establishing competitive, freestanding diagnostic and treatment centers, and specialty hospitals. In your opinion, what are the advantages and disadvantages to these developments from a patient perspective? Explain your answer.
Suppose the supply curve is Q=2P. Suppose there is no sunk cost. what is the producer surplus if 10 units of the good are sold at price P=5. graph the supply curve, P=5, and the area of the producer surplus
A local tailor has two types of customers, private customers and department stores. The market of private customers has a demand given by Qp = 2000–100P, and the market of department stores has a demand given by Qs = 4000 − 100P. Suppose that the tai..
The area-dependent cost of a solar energy system is $175/m2 and the area-independent cost is $3, 350. The down payment of the initial expenditure is 25% and the rest is paid in equal installments over 20 years at an interest rate of 7%.
When external costs are present
According to the Wall Street Journal, "Rent control disproportionately subsidizes the affluent. A Harvard University study in the late 1980s found that rent-controlled apartments were in some of the city's best neighborhoods, that 94% of their tenant..
You live in a small town with only one grocery store. the demand curve for food in your town by p=35-1/5q. The grocery store has a total cost curve of tc = 50+1.25Q. Graph the Demand, Marginal Revenue, Marginal Cost, and Average Total Cost curves. Wh..
The real interest rate is 4 percent, and the nominal interest rate is 6 percent. What is the anticipated rate of inflation?
What features of the product cycle theory are at variance with the assumptions of the Heckscher-Ohlin model? Explain.
Suppose you own a portfolio consisting of $250,000 of long-term U.S. government bonds. What is the least risky security you can think of? Explain. Would your portfolio be riskless? Explain.
Show graphically and explain how a change in the monetary policy regime will affect short-run prices and output in the economy. (3 graphs to complete this problem) (Answers without graphs are useless)
Assume initially that the economy is in a state of long-run equilibrium. The real GDP equals potential GDP and only natural unemployment exists. Now suppose that consumer confidence plummets and the aggregate demand decreases. What will happen to the..
A large bakery buys flour in 25-pound bags. The bakery uses an average of 4,900 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10 per order. Annual carrying costs are $75 per bag. Compute the total cost of lordi..
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