University | RMIT University (RMIT) |
Subject | ECON1056: Managerial and Business Economics Report |
ECON1056: Managerial and Business Economics Report, RMIT, Singapore: What is the maximum price the company can charge a household for an income insurance policy?
Scenario
Our client, MirageCorp, is an insurance company considering launching an `income insurance’ product in the nation of Aqualand. Income insurance is a product that fully insures a household against changes in income caused by a major injury or illness.
At present, no businesses are selling income insurance products in Aqualand. Initial market research suggests that there are a total of 3,600 households in Aqualand and all of them are interested in purchasing income insurance.
Your client expects that the xed cost of launching the income insurance product will be $2,700,000 per year, and that each policy issued to a customer will cost the company an additional $500 in sales commissions.
Buy Custom Answer of This Assessment & Raise Your Grades
2.1 Your task
Your client wants you to analyse the potential market for income insurance and report on the following:
- What is the maximum price the company can charge a household for an income insurance policy?
- What is the expected prot (or loss) for the company if it becomes a monopoly provider of income insurance?
- Is there a risk that rival insurance companies will also enter the market, selling
identical income insurance products? If so, what would be the expected prot of your client? (You should assume that any competitors would face the same costs as your client.)
Stuck with a lot of homework assignments and feeling stressed ? Take professional academic assistance & Get 100% Plagiarism free papers
Tags:-
- ELG101: Discovering Language Assignment, SUSS, Singapore: Speakers are creative users of the languages they speak. In our everyday interaction
- ELG101: Discovering Language Assignment, SUSS, Singapore: Demonstrate the articulation of the words in the above data set using the International Phonetic
- Principles of Project Management Individual Assignment, SUSS, Singapore: You are appointed a Project Manager in charge of organising and planning a project
- COR2223: Frontiers of Modern Computing Final Written Assignment, SMU, Singapore: Write a short story imagining a future scenario and how one or more of the modern computing technologies
- AC2101: Accounting Recognition and Measurement Assignment, NTU, Singapore: If NTU-C were to record the abovementioned transactions on 31 January, 28 February and 15 March 20×2
- BSE217: Motor Development, Control and Learning Assignment, SUSS, Singapore: Create a rating scale or categories of differentiation to rate the movement proficiencies of the individual
- BSE217: Motor Development, Control and Learning Assignment, SUSS, Singapore: Discuss the main theoretical foundations of Ecological Dynamics Theory
- NCO201: Learn To Learn, Learn For Life Tutor-Marked Assignment 2, SUSS, Singapore: Create a learning plan. Use this template to create your learning plan
- NCO201: Learn To Learn, Learn For Life Tutor-Marked Assignment 2, SUSS, Singapore: Self-reflection is a critical part of learning. By looking back at your process and analysing
- BPM301: LCC and Sustainable Design and Construction Assignment, SUSS, Singapore: A developer is building a new 3-storey sports complex on a 10-year leasehold land
UP TO 15 % DISCOUNT