Answer:
A) CE(X) > CE(Y) is the correct answer.
Explanation:
Solution:
Correct Answer is A) CE(X) > CE(Y)
Because:
1. First of all, we are given that Pierce has a concave utility of wealth function u(x) which means Pierce is a kind of person who does not prefer taking risk.
2. Secondly, we are given that he prefers prospect X to Prospect Y.
3. Thirdly, Pierce will always make sure that Certainty Equivalent should be higher than others as Pierce does not want to take risks.
4. Lastly, he prefers X to Y so, he will make sure CE(X) must be greater than CE(Y) .
Hence,
A) CE(X) > CE(Y) is the correct answer.
Answer:
$114,320
Explanation:
The computation is shown below:
The margin of safety equals to
= (Expected sales units - break even sales units) × Selling price per unit
where,
expected sales units = 4,329 units
Break even sales units = 2,900 units
And, the selling price per units is $80 each
So, the margin of safety in dollars is
= (4,329 units - 2,900 units) × $80
= 1,429 units × $80
= $114,320
This is the answer but the same is not provided in the given options
According to most economics textbooks, our wages are determined just like any other price: by supply and demand. People supply their labor, and companies demand it, creating a market for labor.
I hope this answer helps you :D
And have a great day!
Answer:
all of the above
Explanation:
all of these indicates one's lifestyles.
