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A proposal has been advanced to limit advertising of pharmaceutical prices to prevent unfair pricing by national chains. You estimate that limits on price advertising will change the price elasticity of demand from -5.63 to -4.43. The marginal cost of a typical prescription is $40. A typical small pharmacy fills 25 prescriptions per day. The pharmacy is open 6 days per week and 52 weeks per year. A typical consumer fills 20 prescriptions per year.
From the pharmacists' perspective, what is the overall/ combined profit given the elasticity range?
Consider the role of discount rates in problems involving long time horizons. Suppose that a particular emission abatement strategy would result in a 50 billion reduction in damages 50 years into the future. Calculate the maximum amount that could be..
The costs of expected inflation cause productive resources of an economy to be directed away from their efficient allocation. Explain how each of the following costs of expected inflation distrot the allocation of productive resources:
Of the following, three mean the same thing and one means something different. Which option does not mean the same thing as the other three in the context of the basic market model we reviewed in class (and that you learned about in principles of mic..
As the value of the Gini coefficient approaches one, The Gini coefficient is measured by
1. 1.because bank funding markets are global and have at times broken down disrupting the provision of credit to
What decision (abroad or domestic) should be reconsidered to create better entrepreneurial opportunities in the future
q1. assume the government decides to fight obesity in america by imposing an excise tax on the saturated fat content of
Illustrate what is the four industry concentration ratio of the hamburger organization in this town.
Immediately after a hurricane, it is likely that the quantity demanded for tree cutting/removal services will ______ the quantity supplied, causing the price of tree cutting/removal services to ______. The question of who pays the greater amount of a..
A decrease in demand for coffee can be cause by:
The government imposes a maximum price on apartments that is below the equilibrium price.
Clarify what action monetary policymakers must take for the actions of fiscal policymakers to have no effect on real income.
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