Answer:
Part a.
If the Congress of country U to clothing insurance gives a preferential tax treatment, and the insurance company agrees to pay 80% of the clothing expenses and the tax subsidizes the insurance premium, it will result in increase in the consumption of clothes, because people will buy clothes as if they were free.
With this change in behavior there will be decline in economic efficiency because purchasing of formal and expensive clothing is not done on a regular basis, with clothing insurance people will buy less costly daily wear clothes at subsidized rates or for free and the price of clothes will decrease.
Part b.
People who can pay for the 20% remaining cost of clothes will buy insurance clothing and those who can pay the premium. Moreover, the rich will over consume than the poor because they are the ones who will give more importance to good clothing.
Part c.
If a person spends $2000 on clothing the clothing, insurance cost will be more than $2000 because higher the probability of claim higher will be the premium charged by the insurance company.
Part d.
This is not a good idea by the Congress of country U because good clothing is something every person would like to have. Like in health insurance, people should be insured for big life threatening health issues and for minor health issues people should pay out of their pockets, because people take health insurance benefits for minor health issues since health is more or less free in the COUNTRY U. The high premium costs and high prices are completely ignored.
Answer:
Company A produce 100,000.
Explanation:
According to the question , the computation is shown below:-
Particulars Product A Product B
Contribution margin per unit $20 $30
Hours per unit 1 2
Contribution margin per unit 20 15
As we can see that the company A produces 100,000 and the same is the answer
The marginal product of labor is 10.
Data and Calculations:
Production function = Q = 20K0.5L0.5 = 20 x K x 0.5 x L x 0.5
Where:
Q = number of surgeries per day
K = number of machines
L = number of employees
Assuming that:
K = 2
L = 2
Therefore, Q1 = 20 x 2 x 0.5 x 2 x 0.5
= 20 surgeries per day
Q2 = 20 x 2 x 0.5 x 3 x 0.5
= 30 surgeries per day
Change in productivity = 10 (30 - 20)
Change in labor = 1 (3 - 2)
Marginal product of labor = change in output / change in labor
= 10 (10/1)
Thus, the marginal product of labor for the production function is 10.
Learn more: brainly.com/question/4186143
Answer:
Find the answers in the excel file attached.
Explanation:
The impact of the accounting equation has been shown as well.