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An insurance provider offers car insurance to customers although it cannot directly observe their risk profiles (how good or bad they are as drivers). Suppose the insurance company was forced to provide a common insurance plan at a single price to all customers. What kind of customers would be most likely to buy insurance? Does this constitute a market failure? If so, of what kind? Now, suppose that while the insurance company cannot directly observe customer's risk profiles, it does observe various attributes of drivers such as their age, marital status, gender, driving history, etc. and that these attributes are highly correlated with risk. Can price discrimination along these attributes improve welfare? Explain your reasoning.
Draw the graph for a monopoly with demand, marginal revenue, and marginal cost curves. Identify the profit-maximizing output level and price.
Teri is an IE at Smith Manufacturing in Sarasota. She has been studying process line G to determine if an automated system would be preferred
Business Economics - BUECO 5903 - Explain the meaning of market equilibrium for the market for rental accommodation show your answer with a diagram
Suppose Argentina and Brazil each has 10,000 hours/month labor supply, and labor is the only input for production.
What does full employment mean to you? Does full employment mean everyone who is looking for the job gets one?
If the purchase takes place in June, compute the MACRS depreciation for the first three calendar years. Then assume the hotel is sold in June
The factor-endowment theory demonstrates how trade affects the distribution of income within trading partners. Explain.
Show how much of the issue will consist of flotation costs and how much Bushwhacker will receive after flotation costs are paid.
What is the difference between competitive industry and oligopolistic in terms of demand curve?
Other things equal what effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects on equilibrium price leevel and lefe of real output. a. Reduction in the economy's real ..
Suppose that an exogenous shocks (lack of demand for example) leads firms to dismiss some of their workers. Carefully discuss the impact of this shock on the equilibrium wages, unemployment, vacancies and the market tightness.
Diversity awareness is a prerequisite for effective leadership. A cowboy who teaches leadership by having individuals tame horses.
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