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 33 percent chance the recession will end in six months and profits will return to $100 million. However, there is a 67 percent chance the recession will not end in six months, resulting in a $7 million loss. The standard deviation of profits over the next six months is:
A. $0 million.
B. $57.40 million.
C. $28.31 million.
D. $50.31 million.
Answer: D
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Refer to the table below. Pat's opportunity cost of making a pizza is delivering: Pizzas MadePer HourPizzasDeliveredPer HourCorey126Pat1015
A. 2 pizzas B. 2/3 of a pizza C. 3 pizzas D. 3/2 of a pizza
In a simple economy without government or foreign trade, any income not consumed is called
A) net investment. B) depreciation. C) saving. D) investment.
What best describes the antebellum economy?
a. By 1860 the size of most American firms was comparable to the size of firms today. b. Manufacturing had replaced agriculture as the largest sector of employment in the US. c. Heavy equipment was one of the top-three manufacturing sectors. d. The U.S. developed many new ways of combining factors of production to substitute capital for labor.
The "Bubbles, Bubbles" soap bubble firm's price and cost data are: price = $10; MR = $10; MC = $10; ATC = $10 . This firm is
a. making an economic profit of $10 b. in monopolistic competition and in short-run equilibrium c. about to shut down because economic profit is zero d. a monopolist with a relatively inelastic demand e. in a perfectly competitive market and in long-run equilibrium