<span>Expected utility is calculated by multiplying the utility of each possible outcome by its probability and summing the products. So if Terri has a 25% chance of becoming disabled and purchases a policy then her expected utility is: (.25 x $20,000) + (.75 x $80,000) = $5,000 + $60,000 = $65,000. On the other hand, if Terri does not purchase a policy then her expected utility is (.25 x $0) + (.75 x $80,000) = $0 + $60,000 = $60,000.</span>
Answer:
The answer is B. Ethan has more experience than Karen.
Explanation:
Now, lets take each Answer option separately and see why only B is correct.
Option A is no longer legally accepted or ethical. Perhaps during the era of segregation back in 1960s' this option could have been acceptable. But today it is illegal and is considered as a violation of basic human rights.
Option C is not correct as well because although people with special needs and physical requirements are entitled to receive certain special treatments, paying them more solely based on their disability is not considered suitable nor ethical.
Option D is unacceptable. No one can assume that men have more stamina than women. There are competent, strong and qualified women who can do their jobs much better than men. So we cannot accept this as an answer.
Option E is incorrect as well. Although a person could be an immigrant, once that person has lawfully taken the citizenship of a country, that "immigrant" is considered as a "citizen" of that country (this is not applicable for illegal immigrants!).
However, we can take option B as the answer. This is because when comparing a new employee with a more experienced employee, we can't see any problem in paying the experienced employee more.
Question Completion:
ANSWER CHOICES
A. operating with decreasing returns to scale
B. a natural monopoly
C. a legal monopoly
D. monopolistically competitive
E. productively efficient
Answer:
Based on this data, the market for product Z is:
A. operating with decreasing returns to scale.
Explanation:
For the Average Revenue (Price) to equal the Average Total Cost (ATC) and enable the firms operating in the market to break-even, the firms must increase their production units from 2 million to 3.5 million units. The conclusion that the market for product Z is operating with decreasing returns to scale for a single supplier is because it will take a 75% increase in production for the average total cost to fall from $7 to $5 for the single producer. In other words, the percentage increase in production does not result in a proportionate decrease in average total cost.
Answer:
The DDM tells us that share price = D*(1+G)/R-G
Dividend = 4.00
G= 0.05
R= 0.15
Price = 4*(1.05)/0.15-0.05
Price= $42
Explanation:
We use the dividend discount method to estimate the current price. We use the growth rate and required return to figure out the current price by using the DDM formula.
