Pablo must choose among options A, B, and C. Option A gives him $10,000 for sure. Option B gives him $4,000 with probability 0.5 or $16,000 with probability 0.5. Option C gives him $8,000 with probability 0.5 or $12,000 with probability 0.5
If he receives diminishing marginal utility from wealth, Pablo will A) choose option A.
B) choose option B.
C) choose option C.
D) be indifferent among options A, B, and C.
A
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Assume the market shares of the six largest firms in an industry are 12 percent each. Calculate the six-firm concentration ratio and Herfindahl-Hirschman index for this industry
What does each of these measures have to say about the degree of concentration in the industry? Explain.
Rules advocates believe that the central bank should change interest rates in an attempt to fine tune the economy
a. True b. False Indicate whether the statement is true or false
In which of the following situations will total revenue increase?
a. Price elasticity of demand is 1.2, and the price of the good decreases. b. Price elasticity of demand is 0.5, and the price of the good increases. c. Price elasticity of demand is 3.0, and the price of the good decreases. d. All of the above are correct.
Resources from nature that can be used to produce other goods and services are called:
A) money. B) natural resources. C) labor. D) capital.