Alvin's utility function is U = W. Barry's utility function is U = W2. Carl's utility function is U = W0.5. Each has wealth of only $100. An investment of that $100 has a 10% chance of netting $1,000 and a 90% chance of netting a loss of that $100
Who among the three will make the investment?
Carl's expected utility is (0.1 ? 1,0000.5 ) + (0.9 ? 00.5 ) = 3.16. This is less than his current utility of 10. He will not make the investment. Alvin's expected utility is(0.1 ? 1,000 ) + (0.9 * 0 ) = 100. This equals his current utility of 100. Barry's expected utility is (0.1 ? 1,0002 ) + (0.9 ? 02 ) = 100,000. This exceeds his current utility of 10,000. Barry is risk loving and will make the investment. Carl is risk averse; he will not. Alvin is risk neutral; the investment is a fair game, and he is indifferent about making the investment.
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Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.25 per minute. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, what are the profits from sales to each of the low-demand consumers?
A. $9.38 B. $28.13 C. $153.13 D. $1.00
The American Federation of Labor (AFL)
A. became the nation's predominant labor organization in the 1930s. B. had a main goal in the first decades of its existence of the formation of small producers' cooperatives. C. originally organized unions along craft lines as opposed to industrial lines. D. and the Congress of Industrial Organizations (CIO) split up in 1955.
According to the? text, the term? "Eurosclerosis" refers to
a. The cumulative effects of high productivity growth in Europe.
b. Stagnant economic growth in Europe.
c. A long period of higher growth rates among European countries than the growth rates of the United rates.
d. The differing views about the growth rates of European countries.
Refer to the data provided in Table 10.2 below to answer the following question(s).
Table 10.2 
Refer to Table 10.2. Diminishing returns to labor start with the ________ worker.
A. second B. third C. fourth D. fifth