Answer:
D At the output where marginal revenue equals marginal cost.
Explanation:
As we know that the monopolist have the market power so we can said that the prices can be set at the output level i.e. when the marginal revenue is equivalent to the marginal cost
So as per the given options, the option d is correct
And, the same should be considered and relevant
Answer:
E
Explanation:
In this question, we are told to state what the reaction of Koka and Zola will be;
Kukla and Zola both like the proposal. As according to the given opportunity cost for Kukla (3 rugs per every 4 tables) she can get 1.5 rugs for 2 tables .But with the offer made now she can get 2 rugs for giving 2 tables.
Given the opportunity cost for Zola ( 2 tables per every 3 rugs ) she must give 3 rugs for getting 2 tables. But with the offer made she can now get 2 tables for giving away only 2 rugs .
So both Kukla and Zola are happy with the offer.
<span>The first Job has a 100% chance for Mark to earn $50,000.
While the second Job Has a possible 50% chance for Mark to earn $20,000 and another possible 50% chance for him to earn $80,000 ($20,000 + $60,000)
If mark is risk neutral (Meaning that he is insensitive as regards to risk taking) and he wants to maximize his expected utility then Mark will go for the 100% chance of earning $50,000.</span>
