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Maritime Insurance Company offers insurance policies for recreational boats. A typical policy will pay the replacement cost of $25,00 if the boat is a total loss.If the boat is not a total loss but the damage is more than $10,000 the policy pays $5,000. For damage under $10,000, no coverage is offered. The company estimates the probability of no damage to be .60, the probability of damage between $0 and $10,000 to be .25, and the probability of damage between $10,000 and $25,000 to be.12 If the company wants to make a profit of $200 above the expected cots, what should be the price of the policy?
Producing nations outside the organization, like Britain and Norway, should do their share and cut production.
EXplain how much output will each firm produce in the Stackelberg Equilibrium. What will be the market price. How much profit does each firm make.
Describe the differences between the substitution effect of a wage increase and the income effect of a wage increase
If instead the Fed wants to stabilize aggregate demand, how should it change the money supply..
Does your firm have a dominant strategy? Does firm 2? If so, indicate what this strategy is for each. Given b., find the Nash Equilibrium outcome (actions, payoffs) for the one-time interaction.
Prices the selling monopoly charges for TV sets in periods 1 and 2.
Suppose the inverse demand for an industry was given by P = 60 - 0.03Q. What price results from perfect competition in this market? How many units are sold in this market?
Illustrate what are the opportunity costs of producing X and Y for Leah and Tim; and if specialization is possible, which good should Leah specialize in? and How about Tim.
what will happen to the price level and output? Using the AS/AD model, demonstrate your predictions graphically. what policy might you suggest to the government?
Assume that marginal propensity to consume is constant at 1/2 and breakeven point is $8,000. If income is $10,000, n how much will be consumed and how much will be saved.
Use at least one of the four Marshall-Hicks laws of derived demand to explain this difference in effectiveness between the unions.
Wheat farmers will receive total revenues from consumers and the government totaling
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