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No-state insurance Company has made the following estimate of auto damage for several groups of potential customers who own cars worth $10,000. there are an equal number of customers in each group. No-state is risk-neutral.
Group A, B, C Initial Value of Car: $10,000, $10,000, $10,000 Probability of Accident that devalues car to $5,000: .2, .3, .4
State regulation mandates that every customer must pay the same premium regardless of his or her group, and this premium must be sufficient to cover al expected claims from those who purchase insurance from No-state. There are no additional costs to the company other than paying off claims. All consumers have the following utility function (U) U= W^.05 W is the consumer's wealth as represented by the value of the car. What premium should No-State offer for full-coverage insurance?
Sharp Company's records show that overhead was over applied by $10,000 last year. This over applied manufacturing overhead was closed out to the Cost of Goods Sold account at the end of the year.
What is the current account for the economy below? If there is no statistical discrepancy what is the capital account?
Assume two economies that have identical production possibilities frontiers. Show how they can still gain from trade if their populations have different tastes. (Graph 2 different sets of indifferent curves to represent the different tastes, then det..
examine the following list of goods and services. which goods and services should be included in fredonia gdp in 2009
Atrium, a manufacturer of upscale designer tee-shirts, is considering launching an Internet operation to sell its product direct to consumers in addition to distributing through traditional bricks-and-mortar retail stores. If Atrium can sell 10,000 t..
Why is this statement wrong: "Economists argue that lower prices will result in fewer units being supplied. However, there are exceptions to this rule. For example, in 1972, a very simple 10-digit electronic calculator sold for $120. Lower prices di..
If the price of a product decreases, we would expect: "Price" in the statement of the Law of Supply refers to: A decrease in demand and an increase in supply will: When producers (say, of roads) are not able to make all consumers pay for enjoying the..
Consider a duopoly with differentiated goods in which firms choose prices sequentially. Suppose firm 1 chooses its price p1 first. Then, having observed p1, firm 2 chooses its price, p2. Find the subgame perfect Nash equilibrium (SPE) in this game.
Discuss the correlation between GDP growth and health outcomes. Compare short-term trends vs. long-term trends. Why would this be an example of the fallacy of composition in health economics?
Select any research idea that you are interested. Write down a research question. For example, I am interested in the Salary of baseball players. My research question is "Does age determines wages of baseball players?"
Graphically and mathematically illustrate how, in a two period model of a nonrenewable resource, economic efficiency in the presence of a positive rate of discount implies increased consumption today and higher prices and lower consumption tomorrow t..
Find a 95% confidence interval for the true percent of car owners in this city who recieved a speeding ticket this year. Evalute your results to the nearest hundredth of a percent.
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