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Economists often assume that insurers set premiums (nearly) equal to the AFP for that plan. Is that an accurate assumption? Is a higher “load” on insurance premiums necessarily a bad thing for consumers? When might a higher load be a sign of problems in the insurance market?
Assume that you were ready to buy a custom tailored dress (or men’s suit) and you are prepared to pay up to $200 for it. Also assume that the tailor is prepared to sell that item of clothing for as little as $100. When you arrive at the tailor shop, ..
The difference between a monopsonist and a monopolist is that. In a perfectly competitive output market, the value of the marginal product of a resource is
In the same election game played in class, assume that we have three candidates. Now are strategies 1 and 10 still dominated by strategies 2 and 9 respectively? If not, check and see if they are dominated by strategies 3 and 8 respectively? If so, ar..
illustrate what you observed in this company to your own work experiences.
What factors in economic segment can have significant impact on U.S. restaurant industry? How does each of these factors shape the growth and changes of the industry? What are the future trend of each factor and the resulting changes of the industry?
Illustrate what is the (true) value of the marginal product of each black worker. Discuss the employment decision made by firms for which d = 0.2 and d = 0.8 respectively.
illustrate what obligations do we have to society at large, including the world?" really make a difference in a company's competiveness.
Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect to Good X.
Assume demand is given by: Qd = 80 - 4p. Assume supply is given by Qs = 40. What is the elasticity of supply? What is the market equilibrium?
Bright horizons a monopoly firm, offers a selection of light bulbs for sale. The product costs c = $40 to produce. The product may fail with probability 0.2, hence it is fully operative with probability = 0.8. This probability is public information i..
Mini-Fit Solutions is a manufacturer of miniature valves and fittings. Over an 8 year period the costs associated with a certain product line were as follows: What was the company’s Internal Rate of Return (IRR) for the product over this study period..
Which of the following will not cause the MPL to increase?
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