The answer is expert power.
Answer:
A. Two alternatives
Explanation:Alternative one : not to do anything, and run the risk of losing entire crop worth of $75,000.
Alternative two : to insulate his crop by spraying water at cost of $20,000 and succeed in saving the crop with five possible outcomes as given in attached file.
Net result or expected loss for atternative one is = .40*0 + .6*75000 = $45,000
Net result or expected loss for alternative two is = Cost-20000 + expected loss = 20000 + .3*0 +.15*5000 + .10*1000 +.15*15000 + .30*20000 = 20000+10000 = $30,000
B. Expected loss is less in case of alternative two, therefore farmer is advised to go for spraying water.
C. Highest cost for insulating the crop is (45000 - 10000) = $35,000 (Differnce between the expected loss under the two options)
D. In case the probability of freezing is at the lowest level of .40, then loss under alternative one is = .4*75000 =$30,000 . With higher levels of probabilities the expected loss is bound to be more. Therefore the decision to go for spraying water holds good.
E. As explained earlier as long as cost of insulation is less than the difference between the expected losses between options, it is recommended to go for spraying water.
Answer:
stimulate
expansionary fiscal policy is used in order to “stimulate” the economy; this is the right answer
The market-clearing price for cantaloupes is the price at which the quantity supplied equals the quantity demanded. If the market price is too high, then there is a surplus. If the market price is too low, then there is a shortage.
A market-clearning price is defined as the price of a good or service where the quantity supplied is equal to the quantity demanded. Since this is the definition, it explains the pricing that is set and demanded for the cantaloupes. A surplus is when there are left over amounts of a good or service after those in demand are taken care of. A shortage happens when there is not enough of something that is being demanded.