An investment opportunity has two possible outcomes. The expected value of the investment opportunity is $250. One outcome yields a $100 payoff and has a probability of 0.25. What is the payoff of the other outcome?
A) -$400
B) $0
C) $150
D) $300
E) none of the above
D
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Which factor of production earns profit?
A) land B) human capital C) money D) entrepreneurship
Cowboy Hat Markets Cody's Cowboy Hat Emporium has two stores Fort Worth, TX. One in the Stockyards area that caters to tourists and another a mile further north that caters to ranch hands. Why doesn't Cody sell to both customer types out of one store?
A price floor would be established in cases where the government believed the market equilibrium price would:
a. result in a surplus. b. be too high. c. result in a shortage. d. be too low. e. yield excess profits.
The monopolist's outcome happens at a:
A. equal quantity that is equal to a perfectly competitive one. B. higher quantity than the perfectly competitive one. C. higher price than the perfectly competitive one. D. lower price than the perfectly competitive one.