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Maritime Insurance Company offers insurance policies for recreational boats. A typical policy will pay the replacement cost of $25,00 if the boat is a total loss.If the boat is not a total loss but the damage is more than $10,000 the policy pays $5,000. For damage under $10,000, no coverage is offered. The company estimates the probability of no damage to be .60, the probability of damage between $0 and $10,000 to be .25, and the probability of damage between $10,000 and $25,000 to be.12 If the company wants to make a profit of $200 above the expected cots, what should be the price of the policy?
When the price of pears fell to $3, what part of the change in Sarah's demand was due to the income effect and what part was due to the substitution effect?
You are expected to apply some of the concepts/ models or theories used in the course as well as secondary research (eg. periodicals, trade publications, newspapers etc).
What plant size will the firm choose in producing. Draw the firm's long-run average-cost curve on the diagram and define this curve.
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The government has decided to reduce the pollution also from now on will require a pollution permit for each ton of pollution emitted.
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Find out the percentage change from last year to this year in the United States' nominal exchange rate with Russia
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Discuss economic forces (supply factors, demand factors, government policy) that affect the health care market.
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