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Q: For each of the following situation, do the following: first describe whether it is a situation of moral hazard or of adverse selection. Then explain what inefficiency can arise from this situation and explain how the proposed solution reduces the inefficiency.
a. When you buy a second hand car, you do not know whether it is a lemon or a plum, but the seller knows. A solution is for sellers offer a warranty with the car that pays for repair costs.
b. Some people are prone to see dentist unnecessarily for minor complaints, and health maintenance organization do not know how urgently you need a dentist. A solution is of insurees to have to make co-payment of a certain dollar amount each time they visit a health care provider. All insurance are risk-averse.
c. When airlines sell tickets they do not know whether a buyer is a business traveler or a leisure traveler. A solution for a profit maximizing airline is to offer an expensive ticket that is very flexible and a cheap ticket that is very inflexible booked in advance and can not be changed.
The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.
Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.
Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.
Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.
What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?
Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..
This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.
Identify the purposes of different types of organisations.
Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur
This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.
Prepare a major handout on the key principles of instructional leadership
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