Answer:
The correct answer is option c.
Explanation:
Game theory is a tool in economics. It helps to understand the situation in cases where rational players interact and act in a strategic manner. For instance in an oligopoly market where there are few firms, which are interdependent.
These firms or producers are rational players who have to decide output and price level in order to maximize their economic profits.
The theory of monopoly can be applied only in case of monopoly market. The cartel theory is applicable if firms have formed a cartel. Aggressive competition model is not always necessary.
So, the correct answer here will be option c.
What are we supposed to do?
Examines the supply chain to determine where value is added
Answer:
$ 3100 loss amount is not covered by insurance.
Explanation:
Amount not covered under insurance = Amount lost - Maximum Insurance Amount
- For Jewellery : Jewellery lost - maximum jewellery amount cover = 3800 - 1000 = 2800
- For Silverware : Silverware lost - maximum silverware amount cover = 2800 - 2500 = 300
So, Total Amount loss not covered = Loss at jewellery + loss at silverware
= 2800 + 300 = $3100
Answer:
The answer options for this question are as follows
A) moral hazard
B) adverse selection
C) costly state verification
D) agency
The correct answer is A) moral hazard
Explanation:
Moral hazard corresponds to opportunistic behavior where one of the parties seeks their own benefit at the expense of the other being unable to observe or be informed of their behavior.
Moral hazard appears in markets with asymmetric information. One of the parties has private information about their conduct while others cannot obtain this information.
Given this asymmetry, individuals take greater risks, make less efforts or take advantage of certain circumstances because they know that the cost of their actions will fall on other people.
