If patient insurance inquiries arrive at Blue Choice insurance with a mean rate of 3.6 calls per minute, the exponential probability of waiting more than 0.5 minutes to get the next inquiry call is _____. Question 6Select one: a. 0.2407 b. 0.1222 c. 0.5000 d. 0.1653
Q: Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim…
A: In economics, comparative advantage refers to the relative specialization of an individual or a firm…
Q: it is making a profit. Oit should increase its output to maximize profit. Oit is incurring a loss.…
A: In a perfectly competitive market, a firm produces where the P=MC. price is determined by the…
Q: 8. Solving for dominant strategies and the Nash equilibrium Suppose Tim and Alyssa are playing a…
A: In game theory, a situation known as a Nash equilibrium is one in which each player or participant…
Q: Which of the following cost functions exhibits economies of scope when three (3) units of good one…
A: Economies of scale are a term used in economics to describe the cost benefits or efficiency…
Q: What does the free entry and exit of firms in a monopolistically competitive market guarantee? Oa.…
A: A market structure characterized by a large number of buyers and sellers, where they offer…
Q: Carbon dioxide emissions have been linked to degradation of air quality. The following table lists…
A: The potential regulations are explained as below:Command and Control Policy (Regulation): This is a…
Q: While in college, Jerry received $40,000 in student loans at 8% interest. She will graduate in…
A: Amortization is the process of spreading out a loan into a series of fixed payments over time.When…
Q: Most travel health insurance providers may deny claims, or seriously curtail benefits if certain…
A: An individual, organization, or other entity (the insured) and an insurance company (the insurer)…
Q: JobKeeper was a Australian government initiative introduced during the Coronavirus pandemic to…
A: A government subsidy is a financial benefit granted by a government to a business, individual, or…
Q: Under the classical dichotomy, which of the following does not determine real GDP in the long run?…
A: Gross domestic product refers to the final value of all goods and services produced in a territory…
Q: 25 ATC AVC # 100 The exhibit shows a formers marginal cost everage total cost, and average variable…
A: Total variable cost (TVC) is the sum of all costs that vary with the level of production or output…
Q: . 1 6 S 4 3 2 Figure 8-22 Refer to Figure 8-22. Suppose the government changed the per-unit tax from…
A: Tax:Tax is the amount that the citizens pay to the government, Thus for the government it is a…
Q: The curve in the figure at right will shift to the right when OA. population falls. B. the price…
A: Long run aggregate supply (LRAS) curve shows the potential level of real GDP of an economy. The…
Q: 3. Use a graph to demonstrate the circumstances that would prevail in a perfectly competitive market…
A: Perfectly competitive market basically refers to a type of market in which there are a large number…
Q: The following graph plots the market demand curve for ruthenium. Use the orange points (square…
A: The range of quantities that a producer is willing to offer the market or consumers at different…
Q: Consider a market where there are N rational traders. All of these traders have CARA preferences…
A: The price of the stock is equal to the expected value of the dividend, plus a risk premium. The risk…
Q: P 34 30 22 18 E2 E1 O A subsidy for buyers A tax on buyers A tax on sellers A subsidy for sellers S…
A: Market dynamics refer to the dynamic interplay of supply and demand, price fluctuations, and…
Q: P $14 $12 $10 $8 $6 $4 $2 2 4 S D- MSB 6 8 10 12 10 12 14 Q
A: The loss of economic efficiency that happens when a market's equilibrium is not at the point where…
Q: Your insured has just purchased a snowmobile and wants coverage for a fourteen (14) year old son to…
A: In its entirety, "O.A.P. 1" stands for Ontario Automobile Policy 1, a standard auto insurance policy…
Q: As of 2016, social insurance tax on a typical worker’s income is calculated as ___ of the worker’s…
A: In addition, self-employed individuals must pay Social Security tax on their net income up to the…
Q: The concept of marginal utility: can only be applied to situations in which individuals can choose…
A: Analyzing consumer behavior and resource allocation can be done using marginal utility. The concept…
Q: 8. Demand-pull inflation could be a result of: none of the answers given is correct any one of the…
A: Demand-pull inflation is an economic phenomenon that occurs when the overall demand for goods and…
Q: In the Solow model, suppose the per worker production function is y = 6 k0.5 Suppose s = 0.08, n =…
A: Per worker production functiony = 6 k0.5Other parameterss=0.08 (saving rate)n=0.04 (population…
Q: 5. Conditions for price discrimination Price discrimination is the practice of charging different…
A: A monopolist have the power to control the internal activities in the market like changing the…
Q: Which of the following terms describes the set of values, beliefs, rules, language, and institutions…
A: The issue you raised has to do with "Culture" and, to a lesser degree, "Ethnocentrism." It involves…
Q: Suppose that each firm in a competitive market has the following cost structure: TC=100+q². MC=2q…
A:
Q: Federal funds A. provide banks with an immediate infusion of reserves. B. are short-term funds…
A: Federal funds is a type of interbank SR loan ,this transactions involve the lending of excess…
Q: Consider an open economy with a current population of 0.55 million people, and where the potential…
A: To determine if there is a gap in the current level of GDP, we need to calculate the actual level of…
Q: Draw a curve that shows the relationship between quantity and total revenue when the demand curve…
A: Demand is the desire of an individual ability and willingness to pay for a product. The demand is…
Q: Suppose that real GDP is currently $13.3 trillion and potential real GDP is $14.0 trillion, or a gap…
A: The current GDP is $13.3 trillion.The potential GDP is $14.0 trillion. There is a gap of $700…
Q: Suppose the price elasticity of demand for bread is 1.5. If the price of bread falls by 6 percent,…
A: Price elasticity of demand refers to the percentage change in the quantity demanded of a goods or…
Q: The Based on the following equations Saving (S)= 0.2Y Investment(1)= - 30r + 740, Money Supply(Ms)=…
A: The simple investment multiplier is the ratio of the change in aggregate output to the change in…
Q: Which of the following is an example of investment, as a component of GDP? The purchase of bridges…
A: Investment refers to the allocation of resources or money in expectation of profit.Usually we invest…
Q: Scenario 16-6 Ike's Ice Cream has decided to open a new ice cream parlor in Mayville, MS. The market…
A: Monopolistic competition involves many firms offering differentiated products, engaging in non-price…
Q: Sara has health insurance with a $2,000 annual deductible, a $3,000 stop loss provision and 80/20…
A: Insurance refers to a type of financial product intended to shield people and businesses from the…
Q: Q10 Refer to Figure 27-1. A rightward shift of the money demand curve can be caused by…
A: Money demand alludes to the longing or inclination to hold cash or liquid assets rather than…
Q: A new manufacturing facility will produce two products, each of which requires a drilling operation…
A: EAC or equivalent annual cost is the cost to the company or individual for owning, maintaining, and…
Q: The demand side of the market for Sprite is comprised of 2 people. These people are William and…
A: Perfect competition is a market structure in which there are many buyers and sellers, all selling an…
Q: The MB curves in the diagram slope downward because of the law of Multiple Choice O O conservation…
A: The incremental gain or favorable effect that an extra unit of a certain activity or input produces…
Q: Using the graph on the right, determine the output range over which increasing returns to scalo…
A: The technological relation between input and output is called the production function. The greatest…
Q: Kappa Holdings is looking at a new system with an installed cost of $740,000. This cost will be…
A: To calculate the NPV of the project, we first need to calculate the annual cash flow.Annual cash…
Q: Consider the entire U.S. economy. If there is a dramatic increase in the price of all metals used…
A: Aggregate supply is the total quantity of output firms will manufacture and sell—in other words, the…
Q: calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal…
A: Total Revenue is the value of earnings of the firm on question. It is the product of price charged…
Q: Two examples of government monopolies and what is the rationale for the granting of monopoly rights…
A: A monopoly market is a type of market where there is only one seller and many buyers. This gives the…
Q: Suppose Cindy purchases a meal at a local Baton Rouge restaurant and pays with her debit card.…
A: The total quantity of money in flow within an economy, including both physical currency and…
Q: PB11. 9.6 Record journal entries for the following transactions of Noreen Turbines. Jan. 1, 2018…
A: The accounting area, and specifically the accounting for notes receivable, interest income, and…
Q: The firm will earn economic profit of $_
A: Economic profit is a concept in economics that measures the difference between the total revenue…
Q: Market power is the ability of a firm to charge a price greater than marginal cost…
A: Perfect competition is a type of market where there are very large number of firms,which have no…
Q: 3. Demeter has 100 acres of land on which she can plant wheat or rice. The following table shows the…
A: The two conditions that hold at Demeter's expected utility maximizing contingent income bundle…
Q: Two fixtures are being considered for a particular job in a manufacturing firm. The pertinent data…
A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…
If patient insurance inquiries arrive at Blue Choice insurance with a mean rate of 3.6 calls per minute, the exponential probability of waiting more than 0.5 minutes to get the next inquiry call is _____.
Question 6Select one:
0.2407
0.5000
0.1653
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- Farmer Brown faces a 25% chance of there being a year with prolongeddrought, with zero yields and zero profit, and he faces a 75% chance of a normal year, with good yields and$100,000 profit. These probabilities are well-known. Suppose that an insurance company offered a droughtinsurance policy that pays the farmer $100,000 if a prolonged drought occurs. Assume that the farmer’sutility function is u(c) = ln(c). He has initial wealth of $40,000. What is the economic intuition on why X > Y? Confine your answer to at most three sentences.John wants to buy a used car. He knows that there are two types of car in the market, plums and lemons. Lemons are worse quality cars and are more likely to break down than plums. John is willing to pay £10, 000 for a plum and £2, 000 for a lemon. Unfortunately, however, he cannot distinguish between the two types. Sellers can offer a warranty that would cover the full cost of any repair needed by the car for y ∗ years. Considering the type and likelihood of problems their cars can have, owners of plums estimate that y years of guarantee would cost them 1000y, owners of lemons estimate that the cost would be 2000y. John knows these estimates and decides to offer £10, 000 if a car comes with y ∗ years of warranty, £2, 000 if a car comes without warranty. For which values of y ∗ is there a separating equilibrium where only owners of plums are willing to offer the y ∗ -years warranty? Clearly explain your reasoning.The application which provides a way of revising conditional probabilities by using available information and provisions for revising conditional probabilities with other information that is useful for management decision making is called? Select one: a. Bayes’ theorem. b. overinvolvement ratios. c. probability rules. d. empirical formula.
- JUST ANSWER SUBPART 2 There are two individuals, Individual A and Individual B. Individual A has an income (Y) of 500 million Rupiah per year. If Individual A is sick, he will lose 25% of his income. Meanwhile, Individual B has an income (Y) of 100 million Rupiah per year, and if Individual B is sick, he will lose 75% of his income. The probability of Individual A and Individual B being sick is the same, which is 10%. If the satisfaction level of Individual A and Individual B is determined by their income level, based on the following function U(Y)=ln Y, would Individual A and Individual B prefer not to have health insurance? Explain Faced with fair actuarially insurance, how much premium is offered to Individual A? Is the premium rate offered the same for Individual B? Explain with the support of graphic illustrations. The government decides to provide compulsory health insurance with a premium rate for Individual A and Individual B, which is 2% of the income of each individual. In…A company invests on selling computer units worth Php 32,000.00. The probability of maintaining this price throughout the year is 65% while that of less or more than 10% the expected are 15% and 20%, (a) what is the probability that the selling price for that year is more than the expected price? a. 0.8 b. 0.85 c. 0.25 d. 0.2 e. 1 f. 0.15 g. 0.65Find the values of Absolute Risk Aversion (ARA) and Relative Risk Aversion (RRA) for all the cases below. . U(C) = C0.5. . U(C) = C2. . U(C) = 5×C. . U(C) = -C-2. . U(C) = -C-7. . U(C) = -e-7C. . U(C) = [1/(1-a)]×C1-a , where a is a constant.
- For all parts of this question, assume that the log of GDP per capita is normally distributed with a mean of 8.7 and standard devistion of 1.5Step 1 of 4: If the log of the world distribution of income is normaly distributed with a mean of 8.7 and a standard deviation of 1.5, what income indollars) marks the 90th percentile? KeypadAnswer A 71.325B 1.29C 41,253D 10.63Suppose that there are two types of workers: high and low. Employers cannot distinguish between different types during an interview. Employers value high type at $200,000 and low type at $100,000. Employers are in a competitive market (i.e. zero profit applies). High type workers have a reservation wage of 140,000 and low type workers have a reservation wage of 80,000. Suppose that 50% of all workers are high type. The productivities, reservation wages, and the probabilities are common knowledge). What wage would the employers offer? Please explain the solution!A bank faces a pool of borrowers with measure one in two successive periods. In each period, each borrower wishes to borrow 1 unit from the bank. In each period, a low risk borrower's project returns G = 2 with probability p, = 0.9 and O otherwise, while a high risk borrower's project yields B = 3.5 with probability p, = 0.5 and zero otherwise. The bank knows Pg that the proportion of low risk borrowers is y = 0.4. However, the bank is unable to distinguish between low and high risk borrowers, i.e. it doesn't have an appropriate screening technology.
- Farmer Brown faces a 25% chance of there being a year with prolonged drought, with zero yields and zero profit, and he faces a 75% chance of a normal year, with good yields and $100,000 profit. These probabilities are well-known. Suppose that an insurance company offered a drought insurance policy that pays the farmer $80,000 if a prolonged drought occurs. Assume that the farmer’s utility function is u(c) = ln(c). He has initial wealth of $25,000. a Let Y be the expected amount of money that the insurance company will pay Farmer Brown, in the case that Farmer Brown is insured. Compute Y. b. Let X be the most amount of money X Farmer Brown is willing to pay for the insurance. Set up the equation that defines X. Either carefully explain in words what your equation says or put short captions explaining the different parts of your equation. c Determine X to the nearest dollar. d What is the economic intuition on why X > Y?Question 2An investor is to purchase one of three types of real estate, as illustrated inFigure below. The investor must decide among an apartment building, anoffice building, and a warehouse. The future states of nature that willdetermine how much profit the investor will make are good economicconditions and poor economic conditions. The profits that will result fromeach decision in the event of each state of nature are shown in Table below: Assume that it is now possible to estimate a probability of 0.60 that goodeconomic conditions will exist and a probability of .40 that poor economicconditions will exist. a) Determine the best decision by using expected opportunity loss. b) Develop a decision tree, with expected values at the probability nodes. c) Compute the expected value of perfect information.The owner of a ski resort is considering installing a new ski lift that will cost $900,000. Expenses for operating andmaintaining the lift are estimated to be $1,500 per day when operating. The U.S. Weather Service estimates thatthere is a 60% probability of 80 days of skiing weather per year, a 30% probability of 100 days per year, and a 10% probability of 120 days per year. The operators of the resort estimate that during the first 80 days of adequate snow in a season, an average of 500 people will use the lift each day, at a fee of $10 each. If 20 additional days are available, the lift will be used by only 400 people per day during the extra period; and if 20 more days of skiing are available, only 300 people per day will use the lift during those days. The owners wish to recover any invested capital within five years and want at least a 25% per year rate of return before taxes. Based on a before-tax analysis, should the lift be installed?