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Assume that every driver faces a 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,000. Assume there are two types of individuals: those with $60,000 in the bank as well as those with $5,000 in the bank. Assume that individuals with $5,000 declare bankruptcy if they get in an accident. In bankruptcy, creditors receive only what individuals have in the bank. What is the actuarially fair cost of insurance? What cost are individuals with $5,000 in the bank willing to pay for the insurance? Will those with $5,000 in the bank voluntarily purchase insurance?
What is the opportunity cost of investing in capital? Do you think a country can "over invest" in capital? What is the opportunity cost of investing in human capital
Bobby is the only man standing next to exactly one handsome man. 4. Clinton is the only man not standing next to exactly one scarred man. Who is fair, handsome and unscarred?
based on market research a film production company in ectenia obtains the following information about the demand and
If the government imposes a ceiling of $6 on the price of the firm's product, Illustrate what output will the firm produce also Illustrate what will be total profits.
In light of the economic downturn, attention has been brought to companies that seem to have a monopoly on a particular market.
What are the economic arguments in favor of such licensing and regulation? What are the arguments against? If such licensing does occur, what is likely to happen to the number of estheticians that practice, the prices they charge and their average in..
Cost is a big issue with every company, and changing technology is the biggest cost for most companies, how your company was able to cope with this problem and maintain the level of profit in a very competitive market?
Under what conditions would firms be likely to support an industry-wide advertising ban. Please provide a few examples.
How will the money supply be affected by this transaction ? what is the ultimate change in deposits, loans, and reserves in the banking system? Explain in detail.
Which economic decision makers determine the demand for labor. What are their goals. Illustrate the decision criteria do they use to reach their goals.
q1. at daves current consumption bundle involving positive units in both hot dogs and sodas his marginal utility for
illustrate what constitutes a perfectly competitive marketplace structure. Support your argument with empirical evidence wherever possible.
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