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Pooling Equilibrium. Imagine an economy with no health insurance, public or private, and two types of citizens, frail and robust. Frail individuals are more likely to get sick. A firm decides to enter the market and offer a single health insurance contract, since it is not possible to distinguish between the two types and the firm is not savvy enough to generate a separating equilibrium. After the success, other firms are willing to enter the market. Under which conditions this pooling equilibrium is stable, if any, and why? Fully explain your reasoning.
Determine how sensitive the decision is to changes in the estimate of annual revenues? Express your answer as a percent change from the estimated value of $55,0
Evaluation of Macroeconomic performance of Australia - evaluation of the macroeconomic performance of Australia from 1990 to 2015/16.
Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells 250 tables.
Calculate Lola's utility maximizing bundle and her resulting utilitylevel if the government chooses to simply give her the money theywould have spent on the program (rather than subsidize housing).Given the two programs cost the same, which one is..
For each of the following calculate each of the multipliers and determine how a 100 billion dollar increase in government spending would affect total spending in the economy: Determine the spending, tax, and balanced budget policy multiplier. Identif..
Why are hostile takeovers more costly to a firm taking over another firm than if the same organization were accomplished through a "friendly" merger?
The market for tennis shoes has a horizontal supply curve and a linear, downward-sloping demand curve. Currently the government imposes a tax of t on every pair of tennis shoes sold and does not tax other goods. The government is considering a plan t..
A perfectly competitive firm’s cost of producing q units of output is T C = 18 + 4q + q2. Its corresponding marginal cost is MC = 2q + 4. The firm faces a market price p = $24. Determine the profit-maximizing output for the firm and the corresponding..
When a fine caterer produces 30 catered meals, its marginal cost and average variable cost each equal $10. Therefore, assuming normally shaped cost curves, at 29 meals:
The movie You've Got Mail features a successful small bookstore competing with a new book superstore around the block.
In the Full Employment and Balanced Growth Act of 1978,
What does a Production Possibilities Frontier illustrate?
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