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Why does the assumption of independence of risks matter in insurance? What would happen to premiums if the probabilities of houses burning were positively correlated? Can you think of a situation where they might be negatively correlated?
Which of the following is an example of a two-part tariff? Which of the following industries is most likely closest to achieving perfect price discrimination?
What is the change in the number of unemployed people in this particular month and what is the change in the number of employed people in the same period?
If there is a constitutional requirement to maintain a balanced budget, then during a recession when tax revenues are shrinking, the government will have to implement
If the merged firm were able to exploit economies of scale it would affect costs, may be even marginal costs. Assume the marginal cost of the merged firm was not 40, but 30. Is the merger profitable in this case?
Information Technology (IT) has been around for a long time but most health care organizations have not embraced information technology as much as most other industries. Discuss this issue as it relates to your organization. Given the material in..
How can we measure the opportunity cost of producing a good? Using a bowed outward production possibilities curve between ice cream and hammers, identify graphically the opportunity cost of obtaining an additional hammer.
Describe how expected activity times and variances can be computed in a PERT network. Describe a situation in which a project manager would choose PERT for their project.
Consider the following situations related to a sports stadium in a city. Assume this is the primary venue for sports games. Decide whether the city government is likely to intervene to enforce antitrust law or not. (a)The stadium is purchased by a..
)Determine the range of prices for which the firm earns a profit. 3) Calculate the profit maximizing output and the resulting profit when price is $101.
Determine to the extent possible the relative market shares of these firms. Discuss the degree of concentration in the industry using CR4, other n-firm concentration ratios, H-H indices, etc.
Draw and explain the parts of a PPC. Draw a PPC for country Nambi and assume that the economy produces only computers and automobiles. Suppose now that there is a new technological breakthrough in the production of computers.
The contract reflects Boeing's effort to reduce costs and production bottlenecks resulting from supply shortages. The contract specifies prices and guarantees quantities of raw aluminum to be delivered to BCAG's suppliers.
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