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An economic consultant explaining the effect on labor demand of increasing health care costs, interviewed for the Wall Street Journal's Capital column (David Wessel, "Health-Care Costs Blamed for Hiring Gap," March 11, 2004, A2), states, "Medical costs are rising more rapidly than anything else in the economy-more than prices, wages or profits. It isn't only current medical costs, but also the present value of the stream of endlessly high cost increases that retards hiring."
a. Why does the present value of the stream of health care costs, and not just the current health care costs, affect a firm's decision whether to create a new position?
b. Why should an employer discount the future health care costs in its decision whether to create a new position?
ECN 630: Midterm Exam. Chris chooses between two goods, X and Y (see figure below). At first, the price of X is low and the price of Y is high (budget line B1). Chris tells you his best affordable combination of X and Y is at point A. Then the pri..
Assume that instead the market is monopolized and the monopolist's marginal cost function is 2+Q. Calculate the consumer and producer surplus. How much has the producer gained versus the competitive example in part 1.
Show in a diagram how the capital-labor ratio is determined and what its value is in a steady state.
a) How many units of the each of the two products will the consumer purchase b) What is the total utility realized from the optimum purchase c) If the price of M decreases to $3, would your decision on purchasing change
Interpret the slopes. Are the intercepts meaningful? Explain. Assess the fit of each model. Is a bivariate model adequate to explain vehicle prices?
supply qs600100pdemand qd1200-200pwhere qs is the supply of packs of cigarattes and qd is the demand for packs of
Assume you are building a system (Aircraft, etc.) for a customer but using the best technology available. You cannot produce the reliability required. The customer requires reliability of .99 after the system (aircraft, etc.) has operated for 1000..
Ginger's utility function is U(x, y) = x2y, with associated marginal utility functions MUx = 2xy and MUy = x2. She has income I = 240 and faces prices Px = $8 and Py = $2. a) Determine Ginger's optimal basket given these prices and her income.
What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).
A particular segment of the medical device industry is dominated by a handful of firms. These firms have combined into an effective cartel. All firms in the cartel have the same cost structure with zero fixed costs and each has constant marginal c..
E-loan,an online lending service,recently offered 48month auto loan at 4.8% compounded monthly to applicants with good credit rating. If you havae a good credit rating and can afford monthly payments of $480.
Would you look for another place to shop or continue to shop there but voice your dissatisfaction? What factors might influence your decision?
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