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a) Describe and derive the equilibrium contract offered to high risk individuals. b) Describe and derive the equilibrium contract offered to low risk individuals.
how does the prices system affect a country
What does the basic neoclassical, or traditional, model of economics assume about markets? It supposes that markets are perfectly competitive and smoothly functioning, and thos
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Non-existence of Objective Probability Distributions : Let us see why expectations are volatile in nature? According to Keynes (1936, pp. 149): "Our knowledge of the fact
the price of a laptop increases by 20% and there is a 40% drop in the quantity demanded
(a) Explain why the Pareto criterion does not provide a complete ordering of the ordinal utility space (b) The competitive equilibrium is the only allocation where the gain
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How the above would apply to non-renewable resources such as oil. This has general applicability to any competitive market. The issue here is that potential supply has a finite
what are the majotr sources of monopoly
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