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The state of California set up its own earthquake insurance program for homeowners. The rates vary by ZIP code, depending on the proximity of the nearest fault line. However, critics claim that the people who set the rates ignored soil type. Some houses rest on bedrock; others sit on unstable soil. What are the implications of such rate setting?
The marginal cost (which equals the average variable cost) of serving an additional patron, either senior or everyone else, is equal to $4. Fixed costs are equal to $1000.Ps = 80 - Qs Pe = 100 - 2Qe Show that MRe = MRs = MC
A small country can import a good at a world price of 10 per unit. The domestic supply curve of the good is S = 50 + 5P. The domestic demand curve is D = 400 - 10P. In addition, each unit of production yields a marginal social benefit of 10. a. C..
In the ability signaling model, suppose that firms can pay to have a worker's ability determined through a test. Does it pay for a firm to make this expenditure?
A math test of 100 questions was given to a random sample of 20 freshman. Suppose that for the population of freshman the distribution of number of correct answers would be normal with a variance of 250. a) what is the probability that the sample v..
Seth could consume $120 next year if he saved all his current earnings. He expects to earn nothing next year. The intertemporal budget constraint for Seth is given by the equation C2 = 120 - 1.2C1 where C1 = possible consumption in year 1 and C2 =..
The plate welded to the end of the I-beam is fastened to the support with four 10-mm-diameter bolts (two on each side). Assuming that the load is equally divided among the bolts, determine the normal and shear stresses in a bolt.
Regal Health Plans issued a ten-year, 12 percent annual coupon bond a few years ago. The bond now sells for $1,100. The bond has a call provision that allows Regal to call the bond in four years at a call price of $1,060.
Although Mark continues to teach full-time, he goes to the tennis courts each day after school and practices after fulfilling his duties as an unpaid assistant. During the summer, he spends 12 to 15 hours each day at the tennis courts. In addition..
Verify that the total annual costs aggregated from individual test costs equal the total annual costs of the laboratory given in the table above
Suppose some firms own the land and some rent. Do these firms behave differently in terms of their shutdown decision or in any other way?
The company recently bid on a Gulf-front causeway improvement in Biloxi, Mississippi.Nash Bridges has incurred bid development and job cost-out expenses of $25,000 prior to submission of the bid.
Which investment is the riskier? Why? (Hint: Remember that the risk of an investment depends on its context.)
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