The equilibrium premium, which balances the premiums charged to healthy and unhealthy people, charged for insurance under this scenario is <em>e. You charge $3,000 and everyone buys insurance.</em>
$3,000 will be affordable to both the healthy and the unhealthy. This amount of premium will enable both classes to buy insurance.
It will <em>not benefit</em> the company to charge:
- $2,000 and enable everyone to buy insurance
- $3,000 and enable only unhealthy people to get insurance
- $1,000 so that only the healthy people to buy insurance
- $1,000 because only healthy people buy insurance.
Thus, the insurance premium charged should be <em>Option E.</em>
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The Bond will sell at a price that is equal to $500,000 (OPTION A).
Bond: Bonds are fixed-income securities that reflect loans from investors to borrowers (typically corporate or governmental).
A bond can be compared to an agreement outlining the terms of the loan and the associated payments between the lender and borrower.
Interest rates and bond prices are inversely correlated. Accordingly, bond prices decrease as interest rates rise and increase when interest rates fall.
In a portfolio, bonds continue to offer these advantages whether yields are rising or dropping. I mean, both stocks and bonds may experience a short-term price fall during times of rising interest rates. The price of the bonds will decrease as they react to increased interest rates.
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Answer:
d. $465.00
Explanation:
Calculation for the amount of total unemployment taxes
FUTA tax rate $60.00
(0.8%×$7,500)
SUTA tax rate $405.00
(5.4%×$7,500)
Total unemployment taxes $465.00
Therefore the amount of total unemployment taxes the employer must pay on this employee's wages will be $465.00
Answer:
a competitive landscape has to do with the analysis which start with an attempt to identify and understand competitors, then followed by an analysis of their strengths and weaknesses and how the target business can be improved upon.
Explanation:
Globalization is known actually lead to increased competition. This competition can be related to product and service cost and price, target market, technological adaptation, quick response, quick production by companies and so on. while technological advances in areas like internet useage and mobile phones can lead to competition, lowered prices, and concurrent improvements in related areas such as mobile banking and information sharing.
Answer:
should it hold the price constant and meet all the excess demand with an increase in production
Explanation:
to determine if the firm should increase their price or not, we have to determine the elasticity of demand.
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. the absolute value of elasticity would be less than one
elasticity of demand = 15% / 10% = 1.5
Demand is elastic. if price is increased, the quantity demanded would fall more than the change in price and total revenue would fall.