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Describe the problem of “adverse selection” when health insurance is offered at a community rated premium? Define the term “community rated premium” as well. Is it possible to address the problem of adverse selection by increasing the premium level? Why? Describe two approaches that can be adopted by the insurance companies for reducing the severity of adverse selection problem.
An increase in buyers' incomes
q1. elucidate how a person who refuses an offer of employment in order to keep looking for a better job is counted by
What is the cost to Lavaland of moving from point E to point F. Illustrate what general economic principle is being illustrated.
Suppose the civilian non-institutional population equals 250,000; there are 132,500 employed persons and 10,000 unemployed persons. How many people are not in the labor force?
At an interest rate of 8%, determine the capitalized cost of the facility, assuming that it will be used for an indefinite period.
Suppose now the price of a cell phone minute falls to $.50 per minute. Show how this will change the budget line.
The payoff to a company that enters is its gross profit minus its entry cost, while the payoff to a company that does not enter is 60. Find a symmetric Nash equilibrium in mixed strategies.
Provide a rational for why you feel the new target market and pricing strategy would be successful and the likely impact to the profitability of the firm.
q1. a u.s. resident can earn 6 percent interest on a one-year bank deposit of 100000 at home. alternatively she can
Savings Mart sells patio furniture. Sales are seasonal with higher sales in the spring and summer quarter and lower sales during the fall and winter quarters. Forecast Savings mart sales of patio furniture for each quarter of 2010
q.refer to the baseball 2010 data which reports information on the 30 major league baseball teams for the 2010 season.
what should you do when the manager of a perfectly competitive firm whose short run cost is TC = 100 + 160Q + 3Q2. If the market price is $196.
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