Author Question: Refer to Figure 9.1. If the market is in equilibrium, total consumer and producer surplus is A) ... (Read 124 times)

lracut11 · **on:** Jul 1, 2018

Refer to Figure 9.1. If the market is in equilibrium, total consumer and producer surplus is

A) 0.
B) 100.
C) 800.
D) 1200.
E) 2000.

Question 2

Assume that two investment opportunities have identical expected values of 100,000. Investment A has a variance of 25,000, while investment B's variance is 10,000.

We would expect most investors (who dislike risk) to prefer investment opportunity A) A because it has less risk.
B) A because it provides higher potential earnings.
C) B because it has less risk.
D) B because of its higher potential earnings.