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Consider a utility function: Utility=10√(income). Your income is $121, but there is an illness going around the area that costs $96 to cure. There is a 10% chance that you will catch this illness. What is your expected income? What is your expected utility? How much would a competitive insurance company charge as a premium to cover this illness? Using a graph and a few well-chosen sentences, explain why someone with this utility function would pay this insurance premium
The concept of Mutually Assured Destruction (MAD) is cited by many scholars as the mechanism that kept the peace during the Cold War. However, that does not mean the concept was not problematic. Was the United States government actually protecting it..
Describe the Circular Flow Model. What are the five components of the circular flow diagram, as shown class? What are leaks and injections and how do they affect the economy? How are prices determined in the Circular Flow Model?
Illustrate what is the meaning of economies of scope and explain how do they differ from economies of scale.
Discuss a few kinds of bias. Why do investigators need to be award of potential bias?
Suppose the government imposes a price ceiling of $50 on a market characterized by the following information: Qd=700-2p Qs=100+4p Calculate the magnitude of deadweight loss form the price ceiling. Find a price floor that will result in the same magni..
Autoregressive models: a. are used to smooth out random fluctuations in time series. b. occur whenever all the independent variables are previous values of the same time series. c. relate a time series to other variables that are believed to explain ..
You sell bracelets online. The demand for these bracelets is: At what price should you sell the bracelets?
Outline a strategic plan for yourself to begin planning for a job after graduation (assume you have finished your degree). Include your value proposition, targeted organizations, objectives, strategies, and the internal and external factors that may ..
In granting (or prohibiting) proposed acquisitions or mergers in an industry, government regulators consider a number of factors, including the acquisition’s effect on concentration, ease of entry into the market, extent of ongoing price competition,..
Present a brief background and some history - Describe the evolution of the problem and the emergence of the UG business. Discuss the mechanics of operation of this UG activity, as well as the ways in which payments are made.
q.firm 1 is the incumbent in a market lasting two periods with inverse demand curve p74 -9q. its first-period costs are
a) What is meant by diminishing returns of an input? b) Does it always occur in the short run? Discuss
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