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Given what you know about adverse selection and risk, what, in your opinion, is the best way to provide insurance coverage to the poor and uninsured? Should the government provide financial incentives for private carriers to insure the poor and uninsured or should the government create a risk pool for these individuals funded by the federal government?
It is customary for the News media to report about consumer confidence and investor confidence while discussing the national economy. How do you think the confidence of the economic agents affect the economy? From personal or work experience, state f..
A market is characterized by a demand curve that can be expressed as P = 3000 – 10 Q. Each of the two identical firms currently serving the market has a total cost function of the form C = 250 q. There are no fixed costs. If the 2 duopolists behave a..
Evalute the probability that the company A defaults during the next year assuming that the CDS is priced in a way that makes the expected profit from selling the CDS as zero, and assuming that default probabilities do not vary during the 5 years.
Assume that your current university is the only institution offering online MBA program. Assume also that there are clear advantages of online program over brick and mortar school - such as the flexibility. Which alternative would be better for your ..
The method used to prepare the budget can also affect the amount of time it takes to complete the budget. For example, companies that use participative budgeting will likely take longer to complete the budget process. What is participating budgeting?..
Chief Executive Officer (CEO) Pay There are several possible methods for determining the pay of CEOs in large corporations.
Identify some ways that nursing homes can signal high quality to consumers. Which of these signals are most apt to be reliable? What are some strategies for reducing adverse selection in insurance markets? What sorts of problems do these solutions ca..
Which of the following is the correct definition of economic growth?
In granting (or prohibiting) proposed acquisitions or mergers in an industry, government regulators consider a number of factors, including the acquisition’s effect on concentration, ease of entry into the market, extent of ongoing price competition,..
Demand curve is d1, what will be the change in her revenue. If her demand curve is d2 what will be the change in her revenue.
Fixed costs of a company is $20,000 per year with variable costs of $15 per unit. If this company sells each unit for $20. What is the breakeven point? Show the answer with graph.
A company in the process industry produces a chemical compound that is sold to manufacturers for use in the production of certain plastic products. The plant that produces the compound employs approximately 300 people. Develop a list of six different..
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