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Author Question: Mel's utility of wealth is 130 units at 3,000, 160 units at 5,000, and 190 units at 9,000. Starting ... (Read 118 times)

Evvie72

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on: Jun 29, 2018
Mel's utility of wealth is 130 units at 3,000, 160 units at 5,000, and 190 units at 9,000. Starting from zero wealth, he must choose between options A and B.
 
  Option A gives him 5,000 for sure. Option B gives him 3,000 with probability 0.4 or 9,000 with probability 0.6. Mel
  A) will choose A.
  B) will choose B.
  C) is indifferent between A and B.
  D) needs more information to make a choice.

Question 2

In the figure above, the firm's economic
 
  A) loss will be greater than 30 per day.
  B) loss will be 30 or less per day.
  C) profit will be between 0 and 30 per day.
  D) profit will be greater than 30.01 per day.


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janieazgirl

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

B


Evvie72

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

connor417

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Reply 3 on: Yesterday
Wow, this really help

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