Drug formularies Help manufacturers determine which drugs are efficacious Help salesmen determine what to sell Determine which drugs will be covered by third-party payers

Q: Suppose demand for good 1 is given by pi = 26- 3¹ and demand for good 2 is given by p2 = 72 — 292.…

A: Given: The demand function for good 1: p1=26-3q12 The demand function for good 2: p2=72-2q2 Cost…

Q: Consider the following example. A risk-neutral worker can choose high or low effort. The manager…

A: Given, Low Effort: Cost of Effort : $0 Probability of Low Revenue ($100): 75% Probability of High…

Q: If P5,000 is invested for 10 years with an interest rate of 8%, compounded quarterly, what will the…

A:

Q: Consider the competitive market for rhenium. Assume that no matter how many firms operate in the…

A: Given,  A competitive market for rhenium.  The supply curve shows the range of quantities that a…

Q: Assume that the market for oranges is perfectly competitive. Carmen is an orange producer and her…

A: Shut down refers to the situation under which the firm temporarily closes it production activities…

Q: 0 1 2 3 4 Total Product 5 6 Total Fixed Cost Total Variable Cost 165 Total Cost STC Q SAC = AFC +…

A: Total cost is the sum of fixed cost and variable cost.  Fixed costs are the costs thet doesn't…

Q: 3. Redistributive philosophies Complete the following table by selecting the redistributive…

A: Utilitarianism accentuated the greatest good for the greatest number of residents. An expansive…

Q: When is the definition and enforcement of property rights especially difficult? Group of answer…

A: Property Rights is defined as the legal rights to own and use resources in an economy. The resources…

Q: If GDP is $200, income earned by foreign investments is a credit gain of $22, income paid to…

A: GNP = GDP + NFIA (Net factor income from abroad)  GDP: It is the value of final goods and services…

Q: 5. Optimal price in San Antonio You decide to charge different prices in the two locations.  To do…

A: Cost function in San Antonio can be calculated by using the fixed and the variable costs. Fixed cost…

Q: With a cap-and-trade system in place, the resulting marginal costs of abatement for firm 1 are…

A: The marginal costs refer to the additional costs that are incurred by the firms for producing an…

Q: When the Fed claims that higher inflation, money printing, artificially low interest rates, more…

A: Inflation refers to the rise in the overall prices of all the goods and services produced within the…

Q: ecognize why economists believe that economic problems such as “shocks” and “sticky prices” are…

A: The stability of GDP is one of the primary attributes of economic growth. But, often GDP fluctuates…

Q: Please give typed solution, don't use handwriting or notebook for solution. Todd is driving his SUV…

A: If you own a car and are concerned aboutt the medical bills in case of an accident and you have a…

Q: Considered the following data for an economy. Currency in circulation held by the public: CU = 400…

A: Monetary base is the sum of reserve and currency in circulation.  So, Reserve is the difference…

Q: 8. Compare the monetary base to M1 on the grounds of controllability and measurability. Which do you…

A: "The solution has been generalized because providing subjective/opinioned  content is prohibited as…

Q: Select the correct answer from the terms provided to complete the sentences below. There are more…

A: An organization's systematic method for assessing possible large-scale expenditures or investments…

Q: EXERCISE 5 Loise spends £20 on tea (T) and coffee (C). Her preferences for these goods can be…

A: Utility function : U = 2T + C2 -C  Income = 20  Price of tea = 1.6  Price of coffee = 4  Optimal…

Q: Alpha Industries is considering a project with an initial cost of $7.5 million. The project will…

A: Given,Initial Cost = $7.5 millionCash Inflow = $1.55 millionTime = 7 yearsPretax Cost of Debt =…

Q: Using the information below, what is the Gross Value Added at Market Price? Output Sold Price per…

A: Gross value added at market price is calculated by subtracting the Intermediate cost from the value…

Q: T or F Competitive firms' profit eventually erodes close to zero.  Why?

A: In a competitive market,  There are large no. of buyers and sellers.  The firm produces where P =…

Q: 7. lim √x-2 X-4 X-4

A:

Q: What is the rationale for FDA regulation of drugs?

A: The FDA (Food and Drug Administration) is a federal agency of the Department of Health and Human…

Q: In a college town, students choose between two providers of wireless internet access. All student…

A: Under a perfectly competitive market: A large number of buyers and sellers operate. All firms…

Q: Consider the signaling game below. Does the game have a perfect Bayesian equilibriu which all sender…

A: In the above game - There are two players  - Senders & Receivers  Strategy Set of Senders : { L…

Q: What is the maximum amount of deposits that can be supported by total bank reserves of $50 billion…

A: Reserve are the part of deposit that are kept by the bank.  Reserve is the product of reserve ratio…

Q: A firm's cost function is  C(x) = 300lnx, determine and interpret the marginal cost of the firm when…

A: Given information: C(x) = 300 ln(x)  ----------> Cost function.  Where 'x' is the output…

Q: Ha-Joon Chang argues that free trade in the 1800's: was responsible for the rapid rise of capitalism…

A: Free trade refers to trade between countries where there are no trade barriers. That is, there are…

Q: 17. A firm in a perfectly competitive industry faces the following long run total cost schedule: 2 4…

A: A perfectly competitive firm produces at P=MC=ATC in long run.  MC cuts ATC at its minimum point.…

Q: On the basis of the information below for a single-price monopolist, what would be the profit…

A: In case of a monopoly ,  the firm will produce where MR = MC  MR is the marginal revenue   MC is the…

Q: Please compare the difference in market equilibrium and its consequence between monopoly and market…

A: Monopoly is the state of the market when there is only a single seller of the product and there are…

Q: Allegiant Airlines is considering an overbooking policy for one of its flights. The airplane has 50…

A: To find the average net profit of provided limits we need to find the expected level of reservations…

Q: uppose for Home: Ms=2169, Md/P=5767-99865*R, P=2 Suppose for Foreign:Ms=2655, Md/P=7099-98140*R,…

A: Home Ms=2169 Md/P=5767-99865*R P=2 Foreign Ms = 2655, Md/P=7099-98140*R P=1

Q: 19) A beverage company works out a demand function for its sale of soda and finds it to be…

A: Price Elasticity of Demand measures the percentage change in quantity demanded of a good or service…

Q: 12. Suppose that the money demand function is: (1)² where r is the interest rate in percent. The…

A: People's desire for a certain sum of money may be explained by the demand for money. Transactions…

Q: A benefit of a monopoly is    Question 2 options:   a)  efficient production   b)  decreasing…

A: Monopolist: A monopolist is a single seller in the market and hence he faces the downward sloping…

Q: Which drug type is expected to have a higher markup over cost? Brand name drugs Both have about the…

A: Mark up is the profit margin that the producers set above the costs .

Q: An asset for drilling was purchased and placed in service by a petroleum production company. Its…

A: Given cost of drilling machine = 60000 $ Salvage value = 12000 $ Useful life = 14 years Depreciation…

Q: There are two coffee shops in a local town. They essentially act as an oligopoly for coffee drinks.…

A: Oligopoly: Refers to a market with few sellers. Selling both homogeneous and differentiated goods.…

Q: 4. The government pushes the unemployment rate down 4 percentage points below the natural rate.…

A: Given information The current unemployment rate is 4% below the natural unemployment rate. Beat=1/2…

Q: The terms spillover or externality refer to__ A) black-market economic activity. B) the impact on…

A: The phenomena in which one party's activities have unexpected effects for a third party who is not…

Q: Price 20 15 10 5 0 Qd 0 4 8 12 16 Qs The producer surplus with a $18 price floor is places). The tax…

A: From the given demand and supply schedule, we will calculate the equation of the demand curve and…

Q: please give clear explanation

A: Aggregate demand is the collective demand for goods and services made by all of the consumers within…

Q: What is the significance of the concept of rational ignorance?   Question options:   It explains…

A: Voting is a method of determining the decision of the majority of people. Voting may give…

Q: You are given the following information about a model economy. The autonomous part of consumption is…

A: Consumption function: C = Ca + MPC * (Y-T) Where C is the consumption Ca is autonomous consumption…

Q: Definition The stock of money people hold to take advantage of future changes in the prices of…

A: Demand for money means that money is demanded as physical cash, current account and savings account…

Q: What might happen to the "real wage" paid to employees who earn the minimum wage if firms raise…

A: The nominal wage is the actual wage in terms of money employees received.  The real wage is the…

Q: The Federal Reserve can use expansionary/contractionary policy to shift the AD curve. Use the AD–AS…

A: Aggregate demand is the sum of Consumption spending , investment spending , government spending and…

Q: Who is the winners and losers from trade?  Explain with details

A: International trade refers to the purchase and sale of goods and services among businesses in…

Q: Based on this model, the budget deficit leads to in the level of investment and in the interest…

A: The budget is an estimate for the coming year's expenses and revenue level. The budget is made by…