Suppose Lily's indifference curves are defined as U = ?FS + ?FH, where FS is consumption during sunny weather and FH is consumption during a hurricane. Lily receives 64 units of food when it is sunny and 16 units of food when there is a hurricane. What is the certainty equivalent of the expected food consumption bundle if the probability of sunshine is ? = 0.5?
A. 6
B. 12
C. 25
D. 36
D. 36
You might also like to view...
Demand is said to be ____ when the quantity demanded changes the same proportion as the price
a. independent b. inelastic c. unit elastic d. elastic
Before entry into an industry, a profit-maximizing decision maker will compare the expected market price with the expected
a. long-run average total cost. b. short-run marginal cost. c. long-run average variable cost. d. short-run average total cost.
In the figure at? right, the area of rectangle ABHG represents the? monopolist's
A. maximized total revenue.
B. average total profits
C. total costs
D. maximized economic profits
Refer to the table shown, which shows the demand schedule for a product sold by a monopolist. Marginal revenue is negative:Price of product($)Quantity demanded per year$143$124$105$86$67
A. when price is above $10. B. for every price. C. when price is $10. D. when price is below $10.