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A company with 100 employees decides to offer its employees medical insurance administered by a major health company, but funded totally by the employer—i.e., it self-insurance. The next year, five employees were diagnosed with major medical issues that cost several hundred thousand dollars each, which when combined with everyone else’s expenses, cost the company $2M for the year. The CEO is furious with his HR director who told him that, given their history of medical expenses, he could expect no more than $1M in total costs for the year. What is the best way to avoid this problem in the future?
A. Lay off old, sickly workers and hire only young, healthy workers
B. Set a limit of $10,000 on medical expense payments from the employer. Employees must take care of anything over that themselves.
C. Employer buy insurance that kicks in when medical expenditures exceed what the company expected or is willing to cover.
D. All of the above
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On October 1, Golshan paid $250,000 for a residential rental property. This purchase price represents $200,000 for the building and $50,000 for the land. Five years later, on June 25, she sold the property for $250,000. Compute the MACRS depreciation..
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If the price of chocolate increases what would happen to the demand and supply curves of chocolate and therefore to the equilibrium price and quantity in the market for chocolate? why?
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