When outcomes are uncertain
A) people always look for the sure thing.
B) people are willing to pay risk premiums.
C) people often need to be paid a risk premium before they take a certain course.
D) none of these choices.
C
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Assume that a profit maximizing monopolist is producing a quantity such that marginal revenue exceeds marginal cost. We can conclude that the
A) firm is maximizing profit. B) firm's output is smaller than the profit maximizing quantity. C) firm's output is larger than the profit maximizing quantity. D) firm's output does not maximize profit, but we cannot conclude whether the output is too large or too small.
"Cream skimming" usually results in
a. cross-subsidization of markets. b. subsidies to rural consumers of the service. c. regulations to provide universal service. d. monopoly.
Figure 7-1
Of the graphs in Figure 7-1, which best represents marginal physical product?
a.
1
b.
2
c.
3
d.
4
The consumption schedule shows the relationship of household consumption to the level of:
a. The marginal propensity to consume b. Disposable income c. Investment d. Saving