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Evaluate the following statements.
(a) Offering health insurance by employers as a fringe-benefit reduces the problem of adverse selection.
(b) Too little insurance means that people bear a lot of risk, too much insurance means that people will take inadequate care!
(c) A limited warranty is a signal that the product is not a "lemon." Sears offers satisfaction guaranteed or your money back on its Craftsman tools. Discuss the pros and cons of this unconditional warranty.
(d) High switching costs locks-in consumers from buying substitute goods that may be cheaper.
equity capital is usually less expensive to corporations than dept capital. capital structure is optimal when all sources of capital provide equal funds. debt capital is usually less expensive to corporations than equity capital..most companies use p..
An increase in the supply of loanable funds will lead to a(n) _______ in the interest rate and a(n) _______ in the quantity of capital demanded.
The market demand is P=100-1.5Q and marginal & average costs are constant at 10 (MC=AC=10) find the monopoly price and quantity. Find the perfect competition price and quantity. Calculate profit, social welfare (consumer and producer surpluses), and ..
Specify whether you agree or disagree with the statement as it appears on the topic survey.
You work at a Gazebo company (Shady Tents) and you hire an economist to estimate the price elasticity of demand for your product, and the estimate is .9 (in absolute value) and this has been fairly stable over the last year.
Ben Bernanke, the ex-chairman of the Fed, dubbed the few years preceding the financial crisis of 2007-08 a period of:
Classify each of the following pricing strategies and explain. A local restaurant offers an "all you can eat" salad bar for $3.49. With any sand which, a customer can add the "all you can eat" sales bar for $1.49.
Suppose total benefits and total costs are given by B(Y) = 150Y − 10Y2 and C(Y) = 5Y2. What level of Y will yield the maximum net benefits?
q1. suppose there are two elementary schools in a county. one school a loans all its students a laptop computer for use
You are given the following information about the economy of Nocoin: The banks have submitted of $300 billion, two thirds of which is in deposits with the central bank.
If the cost of plaster and labour is $9 per gnome, what is the lowest price of gnomes at which there is a positive supply in the long run? (Remember that in order for there to be a positive supply in the long run, producers need to get their money ba..
Given that the demand for tickets is a binomial random variable with parameters n = 10 and p = 1/2, illustrate how many tickets should she buy in order to maximize her expected profit.
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