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Rising Insurance Rates. Consider an insurance company that provides group medical coverage for university employees. The company discovered that some of its younger employees had switched to other insurance companies. The company responded to the loss of customers by increasing its price. This is puzzling because you might think the insurance company would drop its price to prevent other employees from switching to other companies.
a. What is the rationale for increasing the price?
b. If you change one word in the second sentence, it would be logical for the insurance company to decrease rather than increase its price. What is the word, and why is it decisive?
The skinny corporation produces excerise videos according toQ=(KL)1/2, where k is the amount of capital used and l is theamount of labor employed. if capital cost $16 per unit and laborcost $2 per unit, skinny s minimized long run average total co..
The market price is currently $1 per poster. She has fixed cost of $250. Her variable cost are $1000 for the first thousand posters, $800 for te second thousand, and then $750 for each additionl thousand posters.
compute the standard error of estimate and the standard error of the coefficient for the following data set: X = 95, 85, 80, 70, 60 and Y = 85, 95, 70, 65, 70. Lastly, set up and perform the hypothesis test to determine if a student's aptitude sco..
For this assignment, you are to use the text online library resources and the Internet to research the use of incentives in motivating employees.
Let Y1, Y2,...,Yn be n i.i.d. random variables with common mean µ and common variance σ2. Let Y¯ denote the sample average. Define the class of linear estimators of µ
Now suppose that due to the success of the Canucks in the first round of playoffs the demand for jerseys rises, what do you think will happen to the equilibrium price and quantity of Canucksjerseys
Suppose the import ban protects 10 jobs in the kiwi fruit industry. What is the cost to consumers for each job protected?
Consider the simple linear regression model without an intercept, y = ß1x + u, with the assumption E(u|x)=0. Also assume that E(x)=0 Show that E(y)=0 and using this as well as E(x)=0 show that the covariance between x and y is given by E(xy) and that..
Suppose there is an increase in oil prices. How will this affect the unemployment rate in the short run and the medium run? How will it affect the real wage (W/P)?
Rubax, a United States producer of athletic shoes, estimates the following linear trend model for shoe sales:
The following equations show market demand and supply, respectively: Qd = 10,000 - 1,000P Qs = -2,000 + 1,000P What is the equilibrium price and quantity in this market?
In Bayonne, NJ there is a large beauty salon and a number of smaller ones.The total demand function for hair styling per day is Q=180 - 10P, where P is in dollars The marginal cost function of all the small salons together is SMCf = 4+ 0.1Q
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