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ABC explosives has purchased re insurance for its factory. It can institute a re prevention program, which would cost $90, but which would lower the probability of a re from .01 to .001. The insurance company cannot determine whether ABC has instituted the program. However, it charges a deductible in the event of a re (i.e. ABC has to pay a certain amount to the insurance company if a reoccurs).
a. What problem discussed in class is the insurance company worried about in charging a deductible?
b. What is the smallest deductible that will incentivize ABC to institute the re prevention program?
Perry is a freshman, he estimates that the cost of tuition, books, room and board, transportation, and other incidentals will be $30000 this year. He expects these costs to rise about $1500 each year while he is in college.
A monopolist faces market demand given by P = 200 – Q. For this market, MR = 200 – 2Q and MC = 3Q. What quantity of output will the monopolist produce in order to maximize profits?
Explain how would you assess the overall financial health of your organization. What are good and bad signs, if any, in your outlook.
Discuss market trends that your selected organization/industry will face. My organization is Ford.
Determine the main differences between re-engineering and continuous Improvement as Quality Management Philosophies?
A large rear dump truck working in a coal mining operation under good conditions has a present purchase price, compute the estimated repair cost per operating hour.
The data are available for output (Q) and Long Run Total Cost (LTC) for a firm. Using appropriate calculations determine the range of outputs over which the firm's technology exhibits Increasing, Decreasing or Constant Returns to Scale.
Competition seems to be so fierce among the giant retailers, after discounting and lower profit margins, how is profitability possible.
Explain the government uses policies like student loans and free trade to influence the economy's growth rate.
What would happen to autonomous consumption if household debt fell and the interest rate rose over the same time period What would happen to autonomous consumption if real wealth increased and expectations of the future became more optimistic
Imagine you are the CEO of Yahoo!, and outline the relevant obligations, ideals, and effects that you believe should be taken into consideration before developing a company policy regarding employees working remotely. Examine the ways in which the..
The Hair Stylist, limited, has a monopoly in College Park market because of restrictive licensing requirements, and not because of superior operating efficiency.
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