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42 reducing arsenic emission standards at selected

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42)Reducing arsenic emission standards at selected copper smeltersis likely to cost $216,000,000. This will increase the life expectancy ofthe 6,500 people affected from 78 to 79. The cost per life year isa. $426.b. $16,614.c. $33,231.d. $36,000.
43)Buckley Clinic has fixed costs of $80,000, a volume of 8,200,marginal costs of $50, and a market share of 2 percent. The priceelasticity of demand for clinic services is˗0.22.
44)Stetler Clinic has fixed costs of $80,000, a volume of 16,400,marginal costs of $50, and a market share of 4 percent. The priceelasticity of demand for clinic services is˗0.22.
45)If Buckley and Stetler merge, they will have a volume of 24,600,fixed costs of $140,000, marginal costs of $50, and a market share of 6percent. The price elasticity of demand for clinic services is˗0.22.
46)Why would a merger reduce costs? Why would a merger increasemarkups? Why do many mergers fail nonetheless?47)The price elasticity of demand for dental services is -0.25. In amarket with 100 dentists, the local dental society demanded and gotan 8 percent increase in prices from the dominant dental insurancecompany. What should happen to the dentists’ revenues and profits?(Assume that average cost equal marginal cost.) Would this agreementbe stable? Explain.
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