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Describe the problem of adverse selection when health insurance is offered at a community rated premium? Define the term community rated premium as well. Is it possible to address the problem of adverse selection by increasing the premium level? Why? Describe two approaches that can be adopted by the insurance companies for reducing the severity of adverse selection problem.
Explain the impact of economies of scale on the capacity of a firm. Understand how to use decision trees to analyze alternatives when faced with the problem of adding capacity.
Zelda Industries is the only firm of its kind in the world. Due largely to historical accident, it began producing streganomas in 1985 in a vacant warehouse. Virtually anyone with a degree in college chemistry could easily replicate the firm's formul..
If the Fed wished to defend the exchange rate of the $ (i.e. prevent the $ exchange rate from falling) what policy action could it take? Explain.
Jerry receives utility from days spent traveling on vacation domestically (D) and days spent traveling in a foreign country (F) as given by the utility U(D,F)=DF. Find the marginal utility of domestic travel and foreign travel. Using the marginal uti..
What is the impact of the trade surplus or trade deficit upon the interest rates and currency exchange rates.
The maintenance foreman of a plant in reviewing his records found that maintenance costs on a large press had increased with sales of a product that will decline in the future. 5 Years Ago $600 4 Years Ago $700 3 Years Ago $800 2 Years Ago $900 Last ..
Given your experiences as a consumer, do you consider monopolies to be good or bad for the general public? In crafting your answer, feel free to refer to a specific situation that you may have encountered to illustrate your point. Credit for this que..
Identify at least two professional organizations in a chosen field. Research the organizations to identify the following:
What effect would a 30 percent reduction in the number of new homes completed have on Mapco's sale.
What are some of the ways that the ease and simplicity of our current technological devices also lead us at times to surrogate our daily responsibilities onto these devices?
A free-market republican argues against the Pigouvian tax by pointing out that the conditions necessary for the Coase Theorem to produce an efficient equilibrium are present in this situation. Assuming that the republican is correct, describe two met..
The marginal product of any input in the production process is the increase in the quantity of output produced from one additional unit of that input. According to the Law of Diminishing Returns, the marginal product of an input declines as the quant..
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