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Simple Flu Shot Pricing
It’s that season again! You have engaged in a market study to categorize your patients’ willingness to pay for their flu shot into 8 equal sized groups: $40, $35, $30, $25, $20, $15, $10, $5). All of your costs are fixed except labor and materials, which cost $10 per flu shot.
a. What price should you charge for a flu shot? Does your answer depend on the total number of patients?
b. Suppose your market research tells you that the four lowest value groups are all students. Should you offer a student discount? If so, how much?
A few years ago, a construction manager earning $70,000 per year working for a regional home builder decided to open his own home building company. He took $100,000 out of one of his investment accounts that had been earning around 6% a year
An increase in the number of buyers for LCD TV's would cause the market demand curve to. 1. shift left or right depending on whether buyers purchase more or less than existing customers 2. shift right 3. shift left. 4. stay the same because the marke..
Suppose the price of a can of Diet Pepsi is $1. Find out Sally's optimal consumption of Diet Coke as a function of the unit price of Diet Coke (PC).
Senator Snodgrass says, “You economists say the economy is recovering from the recession but corporations are sitting on piles of cash and the unemployment rate is not declining. If the economy is really getting better, why aren’t more people getting..
Show the total and marginal products and indicate at each level of production whether the production function exhibits increasing, constant, or diminishing marginal productivity.
Identify three roles for money: money is a unit of account, a store of value also acts as a medium of exchange.
Explain and illustrate graphically the effect of the following on the monetary base and the level of reserves. The Fed lends the Bank of America additional $20 million but depositors withdraw $5million. Central bank purchases $30 million of governmen..
Currently, a fast-food firm has a monopoly in the university student union. The monopoly pays the university $75,000 a year in order to maintain it. The firm earns an economic profit of $290,000 per year. The manager of the first firm calls the unive..
Once issued by the parent, It stays which way also all transfer benefits (tax breaks) are lost forever.
Describe the point at which diminishing returns occur. Indicate the points that delineate the three stages of production.
Locate recent articles in the New York Times or Wall Street Journal in which economists are quoted using positive and normative statements.
In game theory, a dominant strategy refers to a choice
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