Author Question: Of the following endeavors of Happy Home Insurance Company of California, which involves the most ... (Read 109 times)

jparksx · **on:** Jul 1, 2018

Of the following endeavors of Happy Home Insurance Company of California, which involves the most nondiversifiable risk?

A) Fire insurance
B) Home burglary insurance
C) Earthquake insurance
D) Personal accident insurance
E) Home office insurance

Question 2

Bancroft Pharmaceuticals has a patent on a new medication used to treat high blood pressure, so it is the monopoly seller of this new drug product.

The marginal cost of producing one dose of the drug is 10, and the elasticity of demand for the product is -3. What is the profit maximizing monopoly price for this patented drug product? A) 10
B) 12.50
C) 15
D) 30