I need to below questions answered asap. Help!1. (10) Read the following short piece from The Economist: http://goo.gl/YKeJtB which discusses and explains doctor pay. In it they note that “a doctor of general medicine in New York typically earns 64% less than a peer in Alabama.” This is despite the fact that there is a significantly higher demand for general medicine in New York compared to Alabama. Use a market supply and demand for general medicine practitioners in both New York and Alabama to depict this situation. Use one set of axes and show separate supply and demand curves for medicine practitioners in New York and Alabama. Your diagram should depict that the demand is higher in New York, but that the salary of general medicine practitioners (the price for labor) is higher in Alabama.2. (20) Amazon recently had a very public dispute with the book publisher Hachette regarding its prices for e-books. Amazon was trying convince Hachette to lower their price for e-books, arguing that doing so would benefit both consumers and the publisher; Hachette was refusing to cut their prices, countering that lower prices would hurt both the publisher and its authors. Amazon explained their objectives in terms of price elasticity on the following discussion board: http://goo.gl/9lEcMW Read the full post then answer the following questions.a.) Amazon states that “For every copy an e-book would sell at $14.99, it would sell 1.74 copies if priced at $9.99.” Use this information to calculate the price elasticity of demand for e-books between these two prices. Show your work.b.) Suppose Amazon was selling 2,000,000 Hachette e-books when the price was $14.99. If their above calculations are correct, how many would they sell after the price is cut to $9.99? What would the total revenue from e-books equal before and after the price cut?c.) Amazon claims that “e-books are highly price elastic.” If this is the case, then why wouldn’t Amazon want to cut prices even further? For example, why not cut the price of e-books to $0.99 instead of $9.99? d.) Given that Amazon is arguing that cutting e-book prices to $9.99 would benefit Hachette through higher revenue, why do you think Hachette was against this price cut? It is obvious that Hachette did not agree that this move would have benefited them; otherwise they would have voluntarily cut prices. Briefly explain why Hachette may still be against the price cut, even if Hachette does not dispute any of the estimates Amazon gives regarding the price elasticity of demand or revenue expectations. In other words, they believe everything Amazon says in the blog is completely accurate, but they’re still against cutting prices because…3. (10) Read the following interview with John Mackey, CEO of Whole Foods: http://goo.gl/KLPBRJ Mackey talks about the “paradox of shareholder value” and criticizes the theory that purports that all firms should maximize profits. He says that the way he runs Whole Foods is not with profit maximization but with customer satisfaction as its primary purpose. Given Mackey’s point of view, do you think economists should change the way they view firm behavior? In other words, do you think it’s accurate to assume that firms make decisions with profit maximization as its primary purpose, even though the CEO of a large successful corporation is stating that he considers something other than profits as his firm’s primary purpose when making decisions? Explain your answer, and refer to the interview where appropriate.4. Suppose a new firm has fixed start-up costs equal to $2,000,000. Their marginal costs are constant at $20/unit, so their total costs are equal to: $2,000,000 + $20Q.a.) (3) Calculate their average total costs at the following quantities_Q=10,000Q=100,000Q=500,000b.) (4) On a clearly labeled set of axes graph out their MC and ATC curve for the quantities listed above. Be sure that the amounts are clearly indicated on both axes.c.) (5) Suppose this product is sold at a constant price of $25/unit. How many units does this firm have to sell before it becomes profitable?d.) (5) Suppose a potential competitor is considering entering this market. If they enter, this competitor would also incur start-up costs equal to $2,000,000 and expects to sell 200,000 units/year. Should this competitor enter the market? Briefly explain what factors this decision would depend on. 5. Read the following article from The Economist: http://goo.gl/F37srt then answer the following questions. a.
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