This topic contains a solution. Click here to go to the answer

Author Question: Blanca has her choice of either a certain income of 20,000 or a gamble with a 0.5 probability of ... (Read 71 times)

kwoodring

  • Hero Member
  • *****
  • Posts: 560
Blanca has her choice of either a certain income of 20,000 or a gamble with a 0.5 probability of 10,000 and a 0.5 probability of 30,000. The expected value of the gamble:
 
  A) is less than 20,000.
  B) is 20,000.
  C) is greater than 20,000.
  D) cannot be determined with the information provided.

Question 2

Refer to Figure 9.1. If the market is in equilibrium, the consumer surplus earned by the buyer of the 1st unit is ________.
 
  A) 5.00
  B) 15.00
  C) 22.50
  D) 40.00



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ms_sulzle

  • Sr. Member
  • ****
  • Posts: 320
Answer to Question 1

B

Answer to Question 2

D




kwoodring

  • Member
  • Posts: 560
Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)


Sarahjh

  • Member
  • Posts: 370
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

For a complete list of videos, visit our video library