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Assume that every driver faces a 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,000. Assume there are two types of individuals: those with $60,000 in the bank as well as those with $5,000 in the bank. Assume that individuals with $5,000 declare bankruptcy if they get in an accident. In bankruptcy, creditors receive only what individuals have in the bank. What is the actuarially fair cost of insurance? What cost are individuals with $5,000 in the bank willing to pay for the insurance? Will those with $5,000 in the bank voluntarily purchase insurance?
Explain why PC is likely to be related to parent's income. Would parent's income be a good Instrumental Variable for PC?
What is the purpose of economic sanctions? What problems do they pose for the nation initiating the sanctions? When are sanctions most successful in achieving their goals?
Estimate how companies need to bridge the gap between the current state and the e-business state.
q1. old economy traders opened an account to short sell 1300 shares of internet dreams at 46 per share. the initial
Different products have different elasticities. Heart medication, for example, is inelastic, and corn is elastic. Find a product that has not already been selected by another student and describe its price elasticity and income elasticity.
Why would a US company choose to export a product to India rather than license India the right to produce the product locally
You are using a sample size of 15 for your charting purposes. Which of the following is the upper control limit D4 factor for the chart.
Show the total and marginal products and indicate at each level of production whether the production function exhibits increasing, constant, or diminishing marginal productivity.
illustrate what is the corresponding marginal cost function. at illustrate what o/p is AVC at its minimum.
In what industry will a given percentage increase in production workers result in the largest percentage increase in output.
what would volume of output would the two alternative yield the same profit 3-if expected annual demand is 12000 units which alternative would tield the higher profit.
Explain which of the two classmates would you prefer as a partner. Would he also want you as a partner.
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