cost-shifting. Suppose your assignment is to use the standard time trade-off approach to measure quality of life and are given the following information. An individual is faced with living the remaining 10 years of her life suffering from severe osteoporosis. She reveals that she would be willing to give up four of those years to live the remaining six in perfect health. What is the utility of one year in the chronic health state relative to perfect health?
a. 0.6
b. 4
c. 0.4
d. 6
e. 40
a. 0.6
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Refer to the table below. The perfectly competitive firm has a random demand with a 50 percent chance of being $5 and a 50 percent chance of being $7. What quantity should the firm produce to maximize its expected profit?
The above table summarizes the marginal cost of production at various quantity levels for a perfectly competitive firm.
A) 110
B) 120
C) 100
D) 130
The price where quantity demanded is equal to quantity supplied is known as
a. equilibrium price. b. equilibrium quantity. c. equilibrium rate. d. equilibrium level.
Which of the following is the unifying issue of economics?
a. income b. opportunities c. resources d. choices
Consider the following production table: Labour Capital Output (i) 1,000 1,000 10,000 (ii) 2,002 2,000 20,010 Assuming that the production function displays constant returns to scale, what is the marginal product of labour when labour and capital are both equal to 1,000?
A. 1 B. 5 C. 10 D. 20