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Problem: The city of Braavos has population 10,000, and none of its citizens has health insurance. The Iron Bank (IB) sees an opportunity to expand operations into the health-care business. Currently, the citizens' an- nual health care costs are uniformly distributed between 0 and $10,000. Each citizen's cost of care is known to them, and is the same every year, but is private. IB could care for any consumer at lower cost; an indi- vidual whose care currently costs c can be provided the same care by IB for only .8c. The market will work as follows: IB chooses a price p and will offer full care for the next year to anyone who signs up at this price. Citizens know their own cost c and sign up if p < c. For a given price p, how many customers will sign up? What will the average c be for these customers, and what will IB's average cost and total costs be? What is IB's profit as a function of p, and what is the profit- maximizing p?
what dilemma faces regulators trying to regulate natural monopolies? distinguish among private goods public goods
Considering the correlation of a company to the economy which would you chose: A company positively, negatively, or not correlated?
When the price of bonds decreases, the interest rate rises. Explain.
In a short research paper, compare and contrast a chosen LCC with a full-service airline using Doganis' 5 key product features as a framework (price, schedule, comfort, convenience, and image).
In what ways did that curriculum provide value to your future life? In what ways could the curriculum or experiences have been improved?
In 2010 the Financial Times reported that the Mexican Finance minister called for a third change to the country's taxes in as many years. (Financial Times, March 19, 2010) The result would be an increase in tax revenue for the Mexican federal ..
take a small company to be established and construct a cost revenue analysis to see how feasible the project could be?
Find the real interest rate that clears the goods market. Please show your work. Find the price level needed to clear the money market. Please show your work.
Which of the MIs do you think are most valued by schools and society? Why? Do these ideas significantly affect this type of evaluation?
Conduct original research on an American Economic History event that occurred between 1900 - 1960. (You cannot do the Great Depression or Prohibition). I chose The Great Mississippi Flood of 1927, but my professor said " Your topic on the Mississippi..
Describe how the risk premium on corporate securities affects the relationship between the savings rate and the rate of consumption.
What is GDP in each economy? If the total value of GDP is consumed and no country borrows from abroad, how much will consumers in each economy spend on each of the goods?
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