Suppose an insurance company determines that the average annual malpractice cost is $10,000 for reckless lawyers and $500 for careful lawyers. If 10% of the lawyers insured by the company are reckless, the company will earn zero economic profit if the price of insurance is:
A. $500.
B. $1,450.
C. $5,250.
D. $10,000.
Answer: B
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The "duplication laws," passed by Parliament in the late 17th and 18th centuries, restricted colonial export of
a. woolen goods. b. tobacco. c. pig iron. d. cotton. e. All of the above.
If a town has a monopsony, this means:
a. there is only one employer. b. price discrimination takes place. c. goods are priced too high. d. no unions can exist. e. excess profits are being made
What does GDP measure to avoid double-counting?
a. final goods and services b. intermediate goods and services c. net exports d. all sales of goods and services
Purchasing a smart phone data plan, premium movie channels, and University of Alabama football season tickets results in you having to drop your health insurance plan. This can be described as:
A. home field advantage B. healthy living C. irrational decision making D. a trade-off