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In California many insurance companies charge different rates depending on what part of the city you live in. Their rationale is that risk factors like theft, vandalism, and traffic congestion vary greatly from one place to the other. The result is that people who live close to each other but in adjacent zip codes may end up paying very different insurance premia.
a. What would happen to an insurance company that decided to sell insurance at the same price to all drivers with the same driving records no matter what part of the city they live in?
b. What would happen if the government decides to outlaw geographic rate differentials, given that the government cannot force private insurance companies to provide insurance against their will?
What single sum of money at t=6 is equivalent to the following cash flow profile if i=10%? N cash flow 1 -400 2 100 3 100 4 100 5 0..
Calculate correlation coefficients for the three ASVAB components.
What effect does an increase in f have on savings? Does welfare increase or decrease in φ? Should we have the social security program when consumers have this from of myopia?
Suppose that average earnings by age group for bachelor's and Master's degree holders were as follows: Age group bachelor's Master's 23-24 $35,000 -- 25-29 40,000 $48,000 30-34 44,000 56,000 Suppose further that tuition and fees for the Master's p..
How does the elimination of the tax affect the wages of hotel workers?
How is the deadweight loss affected by changes in a and b? How does a change in b affect the elasticity of demand at the equilibrium without taxation?
Over the past 6 months Heads-Up Hair Care, Inc., has normally had sales of 500 bottles of A-6 Hair Conditioner per week. On the weeks when Heads-Up ran sales on its B-8 Hair Conditioner, cutting the price of B-8 from $10 to $8
Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:
Suppose the government imposes a 25-percent tax on accounting profits. This tax is only levied if a firm is earning positive accounting profits. What will your after-tax accounting profit be in the low-revenue case In the high-revenue case.
For the duopoly model (1)-(2): Find all critical points, find the type of these critical points. Problem- The duopoly model describes a market with two firms only. They produce the same product and the supply is Q = q1 + q2
if two people have cardinal utility functions person1 is utility xy and person2 is utility xy13 which bundle would
data for a firm's output at various levels of employment (L) to calculate: a) its marginal physical product of labor (MPPL) schedule; (b) its (MPPL/MRCL) schedule, given a fixed wage (W = MRCL) of $25 per hour per worker. (c) Assuming that capital..
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