Author Question: Lucy works as a college instructor for a fixed annual salary of 30,000. She is considering quitting ... (Read 82 times)

wenmo · **on:** Jun 29, 2018

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.