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Suppose the market demand for a good is described by the equation P = 60 - 0.5Q. If a change in market supply results in price decreasing from P0 = $40 to P1 = $30, then the resulting change in consumer surplus is:
Charles' utility function is U(x;y)=xy. Anne's utility function is U(x;y)=1000xy. Diana's utility function is xy. Elizabeth's utility function is U(x; y)=-1/(xy+1).Fergie' s utility function is xy-10000. Margaret's utility function is x/y. Philip's u..
Gatekeeper models of MCOs require patients to see a primary care doctor before going to see a specialist. What two key economic principles would be involved in a successful gatekeeper program?
In 2008, XYZ Company had $1,535,000 in revenues and $1,200,000 in expenses. According to the Corporate Income Tax Table, what are the average and marginal tax rates respectively? The constant dollar cash flow is $35,000 10 years from now. What is the..
The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $38,000 per year. The store is located on prime real estate in a college town. World of Vide..
The monopolist from the previous problem now faces a specific tax of 20, τ = 20. What are the optimal quantity and price given the tax? Calculate the welfare loss from the tax.
Derive the total supply function of X for the industry assuming that the industry operated under perfect competition.
Assume that a one year bond that has no interest coupon payment with a maturity value (face value) of $1,000 sold for $900. Show the interest rate that this bond will pay when it matures. If the prices of similar bonds are selling next month for $950..
Increasingly, employees are being allowed to choose benefit packages from a menu of items. For instance, workers may be given a package of benefits that includes basic and optional items. How do you think flexible benefit packages would affect an emp..
Suppose that macroeconomics forecasters predict that economy will be expanding in near future. How might managers use this information.
Electoral College system take a country named know land that has. Suppose there are 9 small states in know land where each have 1 million people in.
If a company, new to international arena, is negotiating an agreement with a potential partner in an overseas country, what basic steps should it be prepared to implement.
A struggling company currently has a total value of $700,000. It owes $500,000 from debt financing (assume these are loans from the bank if you wish). The value of the company to the owners is the difference between the total value and the amount owe..
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