Lucy works as a college instructor for a fixed annual salary of ...

[wenmo]

Lucy works as a college instructor for a fixed annual salary of 30,000. She is considering quitting this job and becoming a real estate broker.
 
  Lucy believes that as a realtor she has a 40 percent chance to make 60,000 per year and a 60 percent chance to make 25,000 a year. The figure above shows Lucy's total utility of wealth curve (U). Lucy will decide to ________ and she will definitely make this choice because it gives her a greater expected ________. A) keep her current job; income
  B) keep her current job; utility
  C) quit her job and become a realtor; utility
  D) quit her job and become a realtor; income

Question 2

A market with one or a small number of firms but no barriers to entry is known as
 
  A) a natural monopoly.
  B) a contestable market.
  C) a perfectly competitive market.
  D) monopolistic competition.

[cici]

Answer to Question 1

C

Answer to Question 2

B

[wenmo]

Excellent

[mochi09]

TYSM