Moral hazard is the tendency for an insured person to overuse health services because he has insurance.
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What is Moral hazard?</h3>
- If an economic actor has an incentive to increase its exposure to risk because it does not bear the full costs of that risk is known as a moral hazard
- For example, when an organization is insured, it's going to take on higher risk knowing that its insurance will pay the associated costs
- When the actions of the risk-taking party change to the detriment of the cost-bearing party after a financial transaction has taken place, a moral hazard may occur.
- Moral hazard can be considered as a type of information asymmetry, where the risk-taking party to a transaction knows more about its intentions than the party paying the consequences of the risk and has a tendency or incentive to take on too much risk from the perspective of the party with less information.
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Answer:
The computation of given question is shown below:-
Explanation:
One year ago
Quantity supplied = 600 + 4P
Quantity demanded = 9,000 - 8P
600 + 4P = 9000 - 8P
Price one year ago = $700
Quantity one year ago = 3,400
Current market:-
Quantity supplied = 4200 + 4P
Quantity demanded = 9,000 - 8P
4,200 + 4P = 9,000 - 8P
Price for current market = $400
Quantity for current market = 5,800
C(Q) = 1,200 + 15Q2
A representative firm in a competitive market would produce steel where MC = P
MC = dC ÷ dQ = 30Q
The raw steel does a representative firm produce when the market price is $700
30Q = 700
Q = 23.33
The raw steel does a representative firm produce when the market price is $400
30Q = 400
Q = 13.33
Answer:
The correct answer is the option C: If Blake promotes Austin, it will leave another vacancy to fill.
Explanation:
To begin with, in the case that a vacancy is available in the company and that its manager needs to find a person for the job then the most probable thing to do is to look for someone through outside sources due to the fact that even though it might cost as well as promoting Austin, the fact of just promoting him will cause the fact of rising his wage and also looking for someone new to cover his old job and therefore to pay another one again. That is why, that instead of falling into two different actions it is better to just look for someone new.
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