Costs of insurance.

Costs of insurance. If patient X believes he might have health care costs of $20,000 with a probablility of 0.25 or $10,000 with a probablility of 0.75 what is the actuarilly fair premium that covers costs for X? b. Pt X buys an insurance with a $500 deductible and 20% coinsurance rate. If pt X has expenses of $4,000 how much will the reimbursement be? Please assist by showing how to solve these two problems

Production Functions, Isoquant and Isocost Analysis,

Ongoing U.S. struggles in Iraq, political unrest in South America, and civil wars in Africa are again driving crude oil prices up. If the spreading unrest continues, it is widely believed that oil prices will continue to escalate. Adding to the uncertainty, it is predicted that natural gas prices in the United States will again rise dramatically this winter heating season. Suppose you are the manager of a public utility that supplies electricity to a significant portion of your geographic region. You preside over electrical generation facilities that can produce electricity using either natural gas or oil, or some combination of both. In the past 3 years, you have been faced with sk... click for more

Economics of internet

1. You have estimated demand for the Sand Hill Journal Online to be different for Stanford students and venture capitalists on Sand Hill Road. You are proud of having come up with the demand functions and go in to visit with your CEO. You present the following demand functions: Demand of Stanford students: QS = 100-P Demand of venture capitalists: QV = 300 - 2P Instead of congratulating you and sending you on your way, she immediately asks you the following questions. Assume that the cost function is TC = 9,000 + 10Q A. What price should I charge for subscriptions if I want to set a single price? B. What if I could somehow set a different price for Stanford students what price... click for more

Economics of internet

A. What price-cost markup is implied by a firm' elasticity of demand equal to -3.0? B. A "loss leader" is often defined as a product which is sold below incremental cost in order to build traffic to a store (whether physical or online). How would you reconcile the use of loss leaders with the markup rule you used in part A.? C. How is the use of a loss leader like investing in reputation?

Economics of internet

You can see the notes that are attached. Please solve the following problems based on the notes. 1. Assume that the disutility of travel for consumers arrayed uniformly along a "Hotelling" line is not t as discussed in class, but t2, (i.e. the utility of a consumer for the product is: Utility(Product i) = 3 - (ideal point - actual location product i)^2 There are two firms, A and B. The firms' locations are fixed and customers are uniformly distributed between the firms and the distance between the two firms is D. Each firm chooses a single price, PA and PB. Assume costs are zero. A. What is the equation for the consumer at point X who is indifferent between the two firms?... click for more