In Exercise 1, if the fi rm must act as a perfect competitor, in the long run

Question:

In Exercise 1, if the fi rm must act as a perfect competitor, in the long run what will happen to equilibrium price and equilibrium output?

Exercise 1

Consider an HMO with a demand curve of the following form: Q = 100 – 2 P . Suppose that its marginal and average costs were $20. If the fi rm maximizes profi ts, determine its price, output, and profi ts.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

The Economics Of Health And Health Care

ISBN: 9781138208049

8th Edition

Authors: Sherman Folland, Allen C. Goodman, Miron Stano

See More Books

Question Posted: Jan 29, 2024 03:05 AM

See More Questions

The mainstream view of macroeconomic instability emphasizes sticky prices. To answer the following questions, modify the aggregate supply curve in the extended AD-AS model introduced in Chapter 35....
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds of companies offering tax preparation in a given market. The current market...
The practice of charging interest on money that is lent by one party to another, while commonplace now, has been historically controversial. Major religions have prohibited the charging of interest...
Scott incorporates his sole proprietorship as Superior Corporation and transfers its assets to Superior in exchange for all 100 shares of Superior stock and four $7,500 interest-bearing notes. The...
Consider this thesis: Joseph Henry, Americas first professional physicist, caused the most recent basic change in the human view of the Universe when he discovered self-induction during a school...
DU Journeys enters into an agreement with Traveler Inc. to lease a car on December 31, 2019. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years...
Assuming the same data as given in problem 9, was the well in each case profitable? Discuss your answer. Problem 9:- Property cost (acquisition cost). Drilling cost (one well). Estimated completion...
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invests $70,000 cash and office equipment valued at...
Airport Passenger Processing: As an IT Manager you were tasked to improve the performance of the local Airport Passenger Processing system . This is to make the Airport more efficient and more...
Consistent with Figure 12.1, assume that the FFS price was $100 per visit and the average patient made eight visits per year. A competing managed care organization came in and charged $80 per visit,...
Consider an HMO with a demand curve of the following form: Q = 100 2 P . Suppose that its marginal and average costs were $20. If the fi rm maximizes profi ts, determine its price, output, and profi...
In Exercises 61 through 64, the position s(t) of an object moving along a straight line is given. In each case: (a) Find the objects velocity v(t) and acceleration a(t). (b) Find all times t when the...
Evaluate the different approaches accounting to forecasting income income for the investment?
An individual health insurance policy issued by Company X has a 2,000 deductible, 70% coinsurance, and a 5,000 out of pocket expense maximum that includes the deductible. While the policy is...
Perez Corporation Inc has voluntarily dissolved after following all state statutes relating to possible claims against the corporation. a. If the corporation has $100,000 in assets and owes $80,000...
Suppose that further investigation reveals that $10 million dollars of the firm's fixed assets on December 31, 2013 represented construction-in-progress that will not be completed until the last...
Your organisation is hosting an outdoor event for 100 guests. The event includes a dinner and entertainment. What sources of information would you access to confirm purchase requirements and...
If production is greater than sales, how does absorption costing net income differ from variable costing net income?
What is beacon marketing? What are digital wallets?
Why is the use of teams in organizations becoming more popular?
What is the difference between a team and a group?
Describe the four types of teams.
Silver City, a local government organization, was organized January 1, 2015. The City Council for Silver City adopted (among others) the following accounting procedures: The City's fiscal year will...
John has purchased the insurance policy from an insurance company to cover the value of his house in case if it gets destroyed due to a fire for the price of $2000 per year. John's house is worth...
Anet Bultrn was born on June 6, 1971, she is single and has a position as a maintenance supervisor at a hotel in Boston. Janet's salary for this taxable year was $40,000 and she also earned $7,000 in...

In Exercise 1, if the fi rm must act as a perfect competitor, in the long run

Question:

Step by Step Answer:

ANSWER Q 1002P or P 50 12Q MCAC20 Condit...View the full answer

The Economics Of Health And Health Care

Students also viewed these Business questions