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(a) What happens to the optimal coinsurance rate β (insurance demand), if we vary policyholder's level of risk aversion?
(b) What happens to the optimal coinsurance rate β (insurance demand), if we vary policyholder's wealth w?
(c) What happens to the optimal coinsurance rate β (insurance demand), if we vary insurer's loading factor λ?
What are carrying costs in the denominator of the economic order quantity (EOQ) formula? How do large carrying costs affect the economic order quantity?
Explain the connection between the vertical long-run aggregate supply curve and the vertical long-run Phillips curve.
karens performance pizza is a small restraunt in ny that sells gluten free pizzas karens very tiny kitchen barely has enoug room for the three ovens in which her workers bake the pizzas karen signed a lease obligating her to pay the rent for the t..
Price elasticity of demand is an important tool for managers in a selling environment in decision what to put on sale. Discuss how managers of over the counter health care products could use the concepts of elasticity to maximize profit.
Pete and Paul live in an exchange economy (so we can use the Edge worth-box). The economy has endowment of 10 cheese slices and 10 crackers. Is Pete consuming 3 crackers and 5 cheeses slices a Pareto-optimal allocation? If not, how could you rearrang..
If you expect to retire in 30 years, are currently comfortable living on $50,000 per year and expect inflation to average 3% over the next 30 years, what amount of annual income will you need to live at the same comfort level in 30 years?
Explain the difference between Macroeconomics and Microeconomics. Also explain how economics is used as a social science and as a policy tool.
Are monopolies and oligopolies (firms demonstrating power) always bad for society?
The payoff to a company that enters is its gross profit minus its entry cost, while the payoff to a company that does not enter is 60. Find a symmetric Nash equilibrium in mixed strategies.
Briefly explain regulation in the case of a natural monopoly. Provide 3 common examples of regulation. Briefly discuss the benefits of privatization set out in the text and explain what is required for privatization of a nationalized asset in order t..
Total reserves $80 billion, Transaction deposits $800 billion, Cash held by public is $100 billion, Reserve requirement .10. Are the banks fully utilizing their lending capacity? What would happen to the money supply initially if the public deposited..
Economists have devoted a lot of effort to estimating the natural rate of unemployment in particular countries at particular times. Is this a useless academic exercise, or are there good reasons to want to know this number? Explain.
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