James has a utility of wealth schedule in the above table. He is ...

[go.lag]

James has a utility of wealth schedule in the above table. He is offered a job selling video games at Games Galore. James' compensation depends on how much he sells. In a poor sales period, a salesperson makes 100 per month.
 
  In a good sales period, a salesperson makes 600 per month. James is told by the manager that, in any given month, there is a 25 percent chance of a poor sales period and a 75 percent chance of a good sales period. What is James' expected utility from taking this job? A) 100
  B) 150
  C) 175
  D) 200

Question 2

The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. Between what two levels of output does the marginal cost of producing Fiery Frijoles first begin to rise?
 
  A) 0 and 1000
  B) 1000 and 3000
  C) 3000 and 4000
  D) 4000 and 4500

[akudia]

Answer to Question 1

C

Answer to Question 2

C

[go.lag]

Correct answers!

[akudia]

Great! Please up vote