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Medicare beneficiaries started to receive outpatient prescription drug benefits beginning in 2006, with the implementation of Medicare Part D. As a result, Medicare’s share of national prescription drug spending increased. Explain how the pharmaceutical companies would respond to this policy change in terms of their R&D activities. What is the economic term used to describe this phenomena?
The company you work for recently has committed itself to implementing a program of social responsibility. After the company has gotten the commitment of top executives, planned the program, and appointed a program director, you suggest that a (n) __..
Consider an open economy with fixed exchange rates. Suppose that foreign goods become more fashionable--that is, the demand for foreign goods at a given exchange rate increases. Describe how this change affects output and the interest rate if: a) the..
Diane Carter is interested in buying a five-year zero coupon bond whose face value is $1,000. She understands that the market interest rate for similar investments is 9 percent. Assume annual coupon payments. What is the current value of this bond?
Find the equilibrium price (P), quantity (Q), and revenue in a market characterized by the following equations:
Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed? What are the different price points
Explain how is the activity reflected on the balance on current (BCA) account different from the activity reflected on the capital and financial accounts (BFA).
Which of the following is not a condition of price discrimination
Find the average daily balance for the following credit card account. Assume one month between billing dates using the proper number of days in the month. Then find the finance charge is interest is 1.5% per month on the average daily balance. Finall..
What are 3 reasons why economists have been able to justify the claim that the period from December 2007 to June 2009 represented the worst economic downturn since the Great Depression?
You have your eyes on a new automobile costing $25,000. If you wrote a check for the $25,000, you could drive off in your new car. However, you don’t have it and must finance $20,000 through the dealership at 15%/year/month over a 5-year period. What..
Suppose that demand for rollerblades is given by D(p) = A ? p. The cost function for all firms is C(y) = wy2 + f , where f is a fixed set-up cost. The marginal cost of production is MC(y) = 2wy. Assume that the industry is perfectly competitive. Find..
It was reported that Japan's fishing, aquaculture (tuna and salmon), food processing factories and cold storage areas had been badly affected.
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