Four possibilities have probabilities 0.4, 0.2, 0.2 and 0.2 and values $20, $20, $40, and $40 respectively. The expected value is:
a. $22
b. $24
c. $26
d. $28
d
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A firm sells a product in a perfectly competitive market. The marginal cost of the product at the current output level of 200 units is $4. The minimum possible average variable cost is $3.50. The market price of the product is $3. To maximize profits or minimize losses, the firm should
A. shut down. B. continue producing 200 units. C. increase production to more than 200 units. D. decrease production to less than 200 units.
The proposed merger between Staples and Office Depot and the FTC's opposition to it underscore the importance of how a market is defined when assessing the amount of market power possessed by an individual firm
Indicate whether the statement is true or false
A measure that economists use in order to keep track of employment is
a. the price level b. real GDP per person c. real GDP d. the growth rate of output e. the unemployment rate
In the Wintrobe model of dictatorship:
a. the dictator substitutes capital for repression b. power is created by capital and labor c. the dictator is a stationary bandit d. the dictator combines loyalty and capital e. the dictator produces power by combining repression and loyalty