1) Moral hazard occurs when the individual does not tell the others all the risks associated with their actions, so the correct answer is:
D. an individual knows more about his or her actions than other people do.
for the second one:
the money lent will be x
so we have :
x+10%x=1000
(the money lent and the interest are 1000 together)
so: 110%x=1000


11x=1000
x=1000\11
x=909.09 - so they correct answer is A!
x=
Answer:
b. a market penetration strategy
Explanation:
Market penetration means that it offered a greater products range at the lower price in order to outplayed the competitors and the customers for purchasing the product from the new company
Since in the given situation, it is mentioned that the free delivery is to be provided when purchase is more than $49.97 also the wider range is available
So the option b is correct
<span>I would give excellent customer service to every customer that walks in so they will spread the word that this store has great service, this will bring in more customers that need parts. I would also recommend to the manager to market the store by offering free gifts if they spend 50 dollars or more, or give out some sort of incentives, maybe a punch card, if you get 10 punches, you can have 50% off your next order.</span>
Answer: <em>$4. 71 hamburger and $6.29 French fries.
</em>
Explanation:
Total spendable income of Antonio = $11.00
1 hamburger = $1.50
1 order of French fries = $1.00
Utility maximization function: U(x1, x2) = x1x2 i.e. 1 hamburger and 2 orders of French fries
Using the Utility maximization function: U(x1, x2) = $1.50 + $2.00
= $3.50 per lunch
Therefore the customer will purchase hamburger worth of $(1.50 x 11.00/3.50) = $4. 71
And French fries orders worth of $(2.00 x 11.00/3.50) = $6.29
<em>Antonio will maximize his satisfaction by purchasing $4. 71 hamburger and $6.29 French fries.
</em>