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You start an insurance company as your first entrepreneurial venture after graduation. Your main product line is malpractice insurance for dentists. After exhaustive research, you learn that settling malpractice claims against careful dentists costs $2,000 and settling malpractice claims against reckless dentists costs $7,500.
Individual dentists know whether they are reckless or careful, and your research shows that approximately 20% of dentists are reckless. How much do should you charge for malpractice insurance to break even? Why?
The President of US is suggesting increased spending for a missile defense system and also proposing a major long term tax cut. Provide some predictions of possible outcomes for the federal budget categories,
The demand for speciality glue is given as: P = 1200 - 6Q, where P is value per 100 pounds of specialty glue produced and Q is the amount manufactured.
As the economy slipped into recession in 1980 and 1981, the Fed was under enormous pressure to adopt an expansionary monetary policy. Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation-unemplo..
Ongoing United States struggles in Iraq and Afghanistan, political unrest in South America, and civil wars in Africa have driven crude oil values up for the last many years.
If inflation and nominal interest rates are constant, at what rate, if any, will velocity grow Given a permanent (once and for all) rise in level of interest rates, how will it affect the level of velocity and the growth rate of velocity
The widget industry is currently a monopoly facing the demand curve P=200-20Q, where Q is total industry output. Firm 1 is the monopolist and has a marginal cost of $20. Firm 2 is a potential entrant and must pay $130 up front to enter. Once it pa..
1. calculate the present value of each of the following future paymentsa. a 10000 lump sum received 1 year from now if
If leisure is a normal good, the Laffer Curve can have an inverted U-shape only if leisure and consumption are (at least at some point) sufficiently substitutable such that the substitution effect (on leisure) outweighs the wealth effect (on leisu..
Choose two of the following economic systems(traditional,free market,or centrally planned) and explain which of the two systems you think does the best job of achieving each goal of the major economic goals each economic system tries to meet
analyze the economic theories that are germane to the provision of health services and comment on how one or two
Find the revenue earned by each bakery. From that revenue subtract the bakery's variable cost and compute the firm's short run economic profit.
How will you rank the countries for the investment decision based on the macroeconomic data, Justify. Present the scorecard you used in your analysis.
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