This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A risk-averse individual is offered a gamble that promises a gain of 1000 with probability 0.25 and ... (Read 38 times)

jon_i

  • Hero Member
  • *****
  • Posts: 549
on: Jul 1, 2018
A risk-averse individual is offered a gamble that promises a gain of 1000 with probability 0.25 and a loss of 300 with probability 0.75 . Given this situation, he or she will:
 a. definitely take the gamble.
  b. definitely not take the gamble.
  c. definitely take the gamble if his or her income is high enough.
  d. take an action that cannot be determined given the information available.

Question 2

Even ideal cartels tend to be unstable because
 a. firms typically prefer competition to collusion as competition, because it leads to more profits.
  b. collusion leads to lowest possible overall profits in the industry.
  c. oligopolistic managers are extremely risk loving.
  d. firms can benefit by secretly selling more than they promised the other firms
  e. all of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

wilsonbho

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jul 1, 2018
Answer to Question 1

d

Answer to Question 2

d


jon_i

  • Member
  • Posts: 549
Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it

LVPMS

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

These species are all at risk of extinction. These species are all at risk of extinction.
Assessing risk for infection in adults Assessing risk for infection in adults
(a) The Dmanisi cranium (right) shows similarities to early African H. erectus including the Narioko (a) The Dmanisi cranium (right) shows similarities to early African H. erectus including the Narioko
Development encompasses both gains and losses. Sometimes a health crisis (loss) can result in a heal Development encompasses both gains and losses. Sometimes a health crisis (loss) can result in a heal
How to use a tree diagram to find the probability How to use a tree diagram to find the probability
Components of Weight Gain during Pregnancy Components of Weight Gain during Pregnancy
Video: Hormonal feedback loop components & Glucagon (glycogenolysis and gluconeogenesis)

For a complete list of videos, visit our video library