Final Exam

1. a. b. The equilibrium determine (Pe) is $4 and the equilibrium quantity (Qe) is 8,000. c. A surplus of 4,000 flashlights would be the problem in the market, and we would bide the worth to fall. d. A shortage of 8,000 flashlights would be the problem in the market, and we would expect the price to rise. 2. The United States has the close to expensive health apprehension system in the world, with per capita health expenditures far above those of some(prenominal) other nation. Several factors help to explain the increase in underlying health care spending, which is ultimately reflected in coast health care premiums. Unlike the pricing of consumer products, which is based on supply and demand, health care premium pricing is untold more complicated. Health care premium increases are before long driven by consumers using more services, and higher prices aerated by doctors, hospitals, and other providers. 3. Marginal terms is the amount that intact cost rise when the firm increases production by angiotensin converting enzyme unit of output. Average fall cost is the total cost divided by the quantity of output. Marginal cost is apply to determine the optimal production take aim and average total cost is used to determine the level of profits. 4. By selecting the level of output at which marginal revenue is equal to marginal cost.

If MR > MC, profit bequeath increase if the firm increases Q. If MR < MC, profit testament increase if the firm decreases Q. 5. As long as the regimen owner pursues a production and pricing policy that approaches a competitive outcome, social well-being can be enhanced. In this case the governance ownership would benefit society. However, in most cases, government owners operate much like private field monopolists. The political economy of government institutions does not ensure that government owners will pursue socially optimal policy. Also, governments have no incentive to reduce costs or innovate. 6. In monopoly markets, price will be higher and the quality of service will be lower... If you want to get a full essay, parade it on our website: Orderessay

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