A manager is attempting to assess the probability of a recession ending in the next six months and its impact on expected profitability. The manager believes there is a 75 percent chance the recession will end in six months and profits will return to $400 million. However, there is a 25 percent chance the recession will not end in six months, resulting in a $5 million loss. The expected profits over the next six months are:

A. $301.25 million.
B. $395 million.
C. $405 million.
D. $298.75 million.


Answer: D

Economics

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According to the circular flow diagram, in return for land, labor, capital and entrepreneurial ability, households receive _______________________________.

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Economics