A pharmaceutical company faces a price regulation where it cannot charge any higher than $5,000 for a lifesaving drug. The company knows that the patients put a high value on this product and are willing to pay up to $10,000 for it. The company will likely
a. Not do anything-it is prohibited by law to increase its price
b. Bundle the drug with periodic blood testing, selling the bundle for $10,000
c. Require that the patients have the drug administered by the company's medical staff, for an additional $5,000
d. Both B&C
d
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The Keynesian perspective places more emphasis on
a. supply. b. demand. c. aggregate supply. d. aggregate demand.
When new entrants into a competitive market have higher costs than existing firms,
a. accounting profits will be the primary determinant of entry into the market. b. sunk costs become an important determinant of the short-run entry strategy. c. market price will rise. d. long-run supply is constant.
Using actual market exchange rates and comparable short-term interest rates for the major currencies
A. uncovered interest parity is easier to test than covered interest parity. B. we see that deviations from uncovered interest parity occur only during times of crisis. C. we see that covered interest parity usually held well in the decade before the global financial and economic crisis. D. we see that covered interest parity holds better between the currencies of countries that imposed broad capital controls.
Refer to the information provided in Scenario 36.5 below to answer the question(s) that follow.SCENARIO 36.5: The tiny nation of Bugaboo consists of two virtually identical islands, Achoo and Zoink, separated by the Strait of Dingo. The islands are similar in geography and population. The only telephone service on the islands is cellular, and the only cellular provider on the islands is the government-owned Bugaboo Communications Company, which charges a standardized rate of 20 Bugabucks per minute. Both islands add on an additional $5 Bugabucks-per-minute usage tax. As a way to increase revenue, the island governor of Zoink decided to increase the usage tax to $10 per minute, effective January 1, 2017. The average monthly cellphone usage per month is listed in the table below.?Average
Monthly Telephone Use per Resident (minutes)Island20162017Achoo4,5005,150Zoink4,8005,225Refer to Scenario 36.5. The total cost of telephone service for residents of Achoo in 2016 is ________ Bugabucks. A. 4,500 B. 22,500 C. 90,000 D. 112,500