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Suppose you have a perfectly elastic supply curve represented by P=5, and a demand curve represented by the equation P = 20 - Q . Draw a supply-and-demand diagram representing this situation, and find the equilibrium price and quantity.
The variety of Riverside Ranger logo T-shirts includes 12 different designs. Setup between designs take one hours (and $18,000), and, after setting up, you can produce 1,000 units of a particular design per hour (at a cost of $8,000). Does this produ..
How much excess reserve does your deposit generate for the bank? What is the maximum amount of new money that can be created in the banking system as a result of this deposit? Show all work.
The price elasticity of demand is -0.20, and each clinic has fixed costs of $100,000. One clinic has a volume of 9,200, marginal costs of $70, and a market share of 3 percent. The other clinic has a volume of 15,800, marginal costs of $80, and a mark..
To pay for these paths, it then taxes Andrew, Beth, and Cathy the prices a+b+c=MC. If the taxes are set so that each resident shares the cost evenly (a=b=c), explain how many paths will get built.
Jim’s utility function is U(x, y) = xy. Jerry’s utility function is U(x, y) = 1, 000xy + 2, 000. Tammy’s utility function is U(x, y) = xy(1 − xy). Oral’s utility function is U(x, y) = −1/(10+ 2xy). Who has the same preferences as Jim? Who has the sam..
Will the brothers gain if they specialize. Illustrate your answer with an example.
q.what are your predictions for the economy of thrifty peg based on the following policy scenario1. suppose the
Defective units that go undetected into final assemblies cost $22 each to replace. An inspection process, which would detect and remove all defectives, can be established to test se units.
What investment will you choose if your utility function were given by U(M) = M2 ? What is the certainty equivalent of the chosen investment?
What are the basic elements of health insurance? Define and discuss these elements. For example, what are risk and uncertainty and why are they important concepts in health insurance? What are the benefits and drawbacks to having employers as the pri..
A friend tells you that you should never be a patient in a teaching hospital because the death rate among patients in teaching hospitals is higher than in other hospitals. Interpret the meaning of the regression coefficient on the explanatory variabl..
Explain how the reduction in supply from the reduced fishing waters will either increase or decrease consumer surplus and producer surplus.
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