Solution :
The risk averse is the person who wishes to reduce the uncertainty attached to the money.
Certain income = $2000.
50-50 chance of 1000 and 3000 would income expected income of
(0.5 x 1000) +(0.5 x 3000) = 2000
Both of them gives an equal amount of income while there is uncertainty attached with the second case which makes the risk averse person disincline to follow.
Hence the statement is FALSE.
Assume that the population level in a country is X. 5 percent of the population are likely to get affected by the disease due to which it makes a population of 0.05 X population to be effected by the disease. The population level will cost $38,000, hence making the total healthcare cost to be 1900 X.
168,000 is amount of the gain is Ethan allowed to exclude from his gross income
Solution:
Ethan's post 2009 non-qualified use is 2 years.
He owned the property for 10 years so he is not allowed to exclude 20% of the gain
= $210,000 × 20% = $42,000
He is allowed to exclude = ($210,000 - $42,000)
= $168,000
Answer:
d. Continue production in the short run, but exit the business in the long run unless prices are expected to rise or costs to fall..
Explanation:
Currently, their sales revenue less variable cost is positive as it can sale at $1.50 dollars and the variables cost are less than that. Therefore, there are fixed cost thefirm can pay because it produce.
Now, in the long-run when the firm can exit the market it should consider to do so if it continues to get an average cost above the selling price.
Answer:
c
Explanation:
Bundling is when separate products of a company are combined together and sold to customers usually at a lower price
Answer:
The price elasticity of demand for the students is:
inelastic.
Explanation:
The price elasticity of demand for the students is inelastic because there is no change in the quantity demanded by students that changes the price at which pizza is sold to the students. If one student buys the pizza, the price charged remains $10 and if 1,000 students buy the pizza, the price remains $10 per unit. Therefore, students' demand for the pizza is said to be static irrespective of price because the price is fixed.
