Should there be one $/QALY for an entire country? How would you expect drug companies to react to price limits set by public programs?

Hand written solutions are strictly prohibited

Suppose a monopolist sells a product to faculty members and students on the campus.  If the firm sets a single price, the monopolist produces 5000 units and sell them at the price of $3 per unit.  At this price, the price elasticity of demand for faculty member is -2.5. And the price elasticity of demand for students is -1.5.  The monopolist is considering whether she should set different prices for the faculty members and students and asks for your advice.  The monopolist is thinking about charging faculty members a 10% higher price.  The quantity demanded by the faculty members would fall by  %. The monopolist is thinking about charging students a 10% higher price.  The quantity demanded by the students would fall by  %. Who should the monopolist charge more? mention faculty and students and how much

A natural monopoly packages Alaskan moss, a unique health product that has no substitutes. The graph illustrates the demand curve for this health product. Price and cost (cents per bag) Q Q 50- D 7 Quantity (thousands of bags per year) >>> Draw only the objects specified in the question Draw the monopoly's marginal revenue curve and label it. If the marginal cost is 30 cents a bag, draw the monopoly's marginal cost curve and label it. Draw a point at the monopoly's profit-maximizing quantity and price How many bags a year does the monopoly sell and what is the price of a bag? The monopoly sells bags a year and the price is cents a bag. >>> Remember that the quantity given on the axis is in thousands of bags.

In Fruitland, strawberries are sold in 4-litre baskets to customers on a "pick-your-own" basis. There are 2 farmers who sell strawberries: Mickey and Kit. There are no costs of supplying strawberries for sale for either farmer, so each has MC = ATC = 0. Profit therefore is simply TR. Market demand for strawberries is given in the accompanying table. If the market were served by a monopolist, the quantity traded would be 125 baskets, the price per 4-litre basket would be $7.50, and the profit for the firm would be $937.50. If Mickey and Kit decided to collude, each would have an individual quantity supplied of 62.5 baskets and each would have profits of $468.75. Suppose Mickey and Kit agree to split the monopoly outcome. Kit, acting in her own self-interest, realizes that she can cheat and supply 87.5 baskets; when she does, Kit's profits are $525.00 and Mickey's profits are $375.00. Mickey decides to retaliate and increases his supply to 87.5 baskets too; when he does, Kit's profits…

Theory and Evidence. Childcare is a sector that is heavily regulated because of the importance of ensuring child safety. The current price of childcare is $1200 a month. The government is concerned with this market: Evidence shows that young parents are not returning to work because they cannot afford childcare. The government conducts a randomized control trial of a new policy. In some randomly selected cities, the government mandates that childcare providers cannot charge more than $800 per month. Other randomly selected cities are left unaffected to serve as a control. In six months, the outcomes show that the number of children getting childcare has not changed, but that waiting lists for childcare have increased dramatically. (a) Can this outcome be reconciled with the theory of supply and demand? (b) Do you expect that outcomes will improve in the long run?

NEED ASAP

A monopolist faces a demand curve, Q=100-2P and has a constant marginal cost of 10. It has no fixed costs. ✓ and produce Q*= If the monopolist can only charge a single price, it should charge P*= ✓ units. If the monopolist can charge a separate price for any units sold beyond Q*, then the price of these additional units will lead to additional profit if it is any price in the range of ✓. A monopolist that charges a separate price for additional units is practicing ✓price discrimination. The profit-maximizing price for the additional units is additional profit is for an arbitrary quantity of additional units, then maximize this function. ✓. Hint: Draw a picture. Think about what the

**Practice**