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A health insurance company tries to prevent the moral hazard of "excessive" dentist visits by limiting the visits per person per year to a specific number. How does such a restriction affect moral hazard and risk bearing? Show these results in a graph.
The federal government would like to give grants to local states to promote free medical vaccinations for children. However, because of a limited budget the federal government wishes to target its spending as evidently as possible.
Whay is the payback period of the following investment when a) i=0% and b) i=10%/ year Initial Cost ($) 1,000,000 Annual Cost ($) 100,000 Annual income ($) 300,000 salvage Value ($) 500,000 Max Life time: 10 years
Xon, a small oil company, purchased a new petroleum drilling rig for $1,800,000. Xon will depreciate the drilling rig using MACRS depreciation. The drilling rig has been leased to a drilling company, which will pay Xon $450,000 per year for 8 year..
Consider the expanding input variety model of Section 13.1 with one difference. A firm that invents a new machine receives a patent, which expires at the Poisson rate ι. Once the patent expires, that machine is produced competitively and is suppli..
How can some of the concepts from the course help you explain what you found?
Two car manufacturers, Saab and Volvo, have fixed costs of $1 billion and marginal costs of $10,000 per car. If Saab produces 50,000 cars per year and Volvo produces 200,000, calculate the average production cost for each company.
Explain why eBay is or is not a perfect model for the integration of all the aspects of e---commerce.
a Caribbean wedding was less than $10,000. Listed below is a total cost in $000 for a sample of 8 Caribbean weddings. At the .05 significance level is it reasonable to conclude the mean wedding cost is less than $10,000 as advertised? 8.6 9.2 10.4..
An L treatment costs the physician 100 in cash, an H treatment costs the physician 200 in cash. A physician's utility from consumption x is log(x). an L treatment leads to a good outcome with probability 0.4. An H treatment leads to a good outcome..
Suppose one of the firms with a 10% market share announces plans to buy the firm with the 20% market share. Calculate the post-merger HHI. Is it likely that the U.S. Department of Justice will challenge the merger
Can the residual sum of squares converge upward in less structured situations? How does this fit compare to the fit with a single term fit by S?
assuming that no population growth or technological progress occurs, find the steady-state capital stock per worker, output per worker, and consumption per worker as a function of the saving rate and depreciation rate.
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