Scatterbrain Samantha often forgets to lock her house. This has caused the probability of a burglary to be 30%. If her house gets broken into, she faces a property loss of $10,000, otherwise she gets to keep her $100,000 . If Samantha is offered an insurance policy for her house to protect her from loss at $3,000, what is her expected wealth?
a. $80,000
b. $87,000
c. $97,000
d. $99,000
c
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Based on your answer to part (a), find the profit-maximizing output level for each farmer.
In the competitive market for organic corn, market demand is QD = 340 – 2P and market supply is QS= 100 + 4P, where P is the price per bushel, and Q is market output in thousands of bushels. Each individual farmer faces a marginal cost function of MC = 10 + 3q, where q is the single farmer’s output level in thousands.
The supply and demand for saving are brought into equilibrium by adjustments of the ________ rate.
A. dividend B. real interest C. nominal interest D. discount
The total revenue from the sale of a good or service is calculated by multiplying the price paid by the number of units sold
Indicate whether the statement is true or false
In a capitalistic economic system, who owns most of the nation's resources?
A. Labor unions B. The government C. Private individuals D. No one