Economic homework-Need it ASAP

Check attachment, 

 

question 1 word count has to be more than 270. question has to be more than 270 word count. Hence 2pages

1.

 

     

Suppose a firm has the production technology shown below for Goods 1 and 2 and respond to the following with rationale.

 

a.      

•Does Good 1 indicate economies of scale?

b.     

•Does Good 2 indicate economies of scale?

c.      

•Do the two goods indicate economies of scope?

Good 1 Good 2 Both

Q1 Cost Q1 Cost Q1 Q2 Cost

 

10 50 10 60 10 10 100

 

20 100 20 100 20 20 180

 

30 150 30 130 30 30 250

 
 

2.      

“Grossman’s Model and Risk-Averse” Please respond to the following:

 
a.      

•Analyze Grossman’s Model and how effective this model is at predicting the life expectancy of the elderly. Apply the model to your age group and discuss the findings.

b.     

•Correlate the relationship between risk-aversion and the purchase of health care insurance