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What are insurer practices that attempt to solve problems caused by the traditional, full-coverage, fee-for-service type insurance contracts?
The United States purchased Alaska in 1867 for $7,200,000. Assume that federal tax revenue from the state of Alaska (net federal expenditures) is $56,500,000 in 2018 and that tax revenue started in 1868 and has steadily increased by 3% annually since..
There are many brands of laundry detergent, all equally effective. Would you expect the elasticity of demand for any particular brand to be high or low? Explain.
Suppose that the participation variable, voucher, is completely randomized in the sense that it is independent of both observed and unobserved factors that can affect the test score.
A key difference between accountants and economists is their different treatment of the cost of capital. Does this cause an accountant’s estimate of total costs to be higher or lower than an economists estimate? Explain.
A proposal has been made to increase the price paid by the consumers to the suppliers to $40. What will the resulting quantities demanded and supplied and the resulting utilization be?
Although airline schedules and cost are important factors for business travelers when choosing an airline carrier, a USA Today survey found that business travelers list an airline’s frequent flyer program as the most important factor.
If the company wishes to restore its sales to 10,000 pairs a month, illustrate what price should it charge every pair of socks.
What present expenditure is warranted for business that is expected to produce a savings of $8000 per year that will decrease by $800 per year for nine years with an interest rate of 10%? Draw a cash flow diagram that depicts the situation as well..
Consider a consumer who has preferences defined over commodities x and y. Suppose she is endowed with initial resources ω = (ωx,ωy) » 0 and faces prices p = (px, py). Draw the consumer's budget constraint, explicitly identifying the roles of ω and p...
A risk neutral monopoly must set output before it knows for sure the market price. There is a 50% chance the firm's demand will be P=20-Q and a 50% chance it will be P=40-Q. The marginal cost of the firm is MC=Q. What is the expression for the expect..
The type of planning conducted on a long-range basis by top managers is usually called
Since the uninsured and lower income population generally tend to be less healthy than those who are better off financially, an insurance plan for the less-healthy would not be a good business venture. What is the best way to provide health insurance..
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