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Suppose that you have a job paying $70,000 per year. With a 5% probability, next year your wage will be reduced to $40,000 for the year.
(a) What is your expected income next year?
(b) Suppose that you could insure yourself against the risk of reduced consumption next year. What would the actuarially fair insurance premium be?
Which of the following terms best describes a contract that guarantees an agent some payment, but provides enough incentive so that the agent does not shirk?
q1. determine the advantages and disadvantages of a company using price discrimination in order to increase demand for
What are some examples of companies that succeed and companies that fail in engaging their customers?
The source of Microsoft’s market power over the Windows operating system is a
Price elasticity of demand for stock is 1.5. This means that foe every 10% increase in stock prices, the quantity demanded will decline by 15 %. Does this make sense? explain.
Explain how was the second law and end-use analysis linked to socially constructed scarcity.
Illustrate what are the effects of awards paid to heirs of workers judged to have been worked to death in Japan on wages
Outline the methodology of studying economics also utilize examples in your conversion.
De Beers is a monopolist which supplies diamonds with constant marginal cost and constant average total cost. Draw the average cost, marginal cost, demand and marginal revenue curves. Show the price charged by De Beers without price discrimination. U..
For promotion to lieutenant, police officers in a city police department first have to pass a written aptitude test. This requirement was challenged in court by several black officers on the grounds that the test unfairly discriminated against blacks..
This means that in the particular year the economy produced no capital goods at all." Do you agree. Why or why not? Explain: "Though net investment can be positive, negative, or zero, it is quite impossible for gross investment to be less than zer..
Why is consumer surplus never negative? What is consumer surplus? Consider a market with a demand curve of P=24-2Q and a supply curve of P=3+Q. Calculate equilibrium quantity. Consider a market with a demand curve of P=24-2Q and a supply curve of P=3..
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