1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
s344n2d4d5 [400]
2 years ago
10

Pierce Which of the following statements is therefore necessarily true for Pierce? has a concave utility of wealth function, u(x

). Pierce prefers prospect X to prospect Y.
a. CE(X) > CE(Y).
b. U(EV(X)) > U(EV(Y))
c. EU(X) < EU(Y)
d. Y is a mean preserving spread of X.
Business
1 answer:
Inessa [10]2 years ago
7 0

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.

You might be interested in
"if our company achieves a high level of relational coordination, what can we expect in terms of employee behavior?" check all t
scoray [572]

If a company has a high level of relation coordination then the expected employee behavior is good as well. The employees respond to the company is highly satisfactory

6 0
3 years ago
Amber Corporation donated inventory of clothing (basis of $136,000, fair market value of $170,000) to a qualified charitable org
viva [34]

Answer:

charitable contribution deduction =  $153000

Explanation:

given data

basis = $136,000

fair market value = $170,000

solution

we get here charitable contribution deduction that is express as

charitable contribution deduction = Basis + 50% of (Fair - basis)    .......................1

put here value and we get

charitable contribution deduction = $136,000 + 0.50 ($170,000 - $136,000 )

charitable contribution deduction =  $153000

3 0
3 years ago
Cameron Manufacturing Co.'s static budget at 5,000 units of production includes $40,000 for direct labor and $5,000 for variable
Xelga [282]

Answer:

C) variable costs of $72,000 and $25,000 of fixed costs

Explanation:

To determine the flexible budget we must first calculate the variable costs of producing 8,000 units:

direct labor per unit = $40,000 / 5,000 units = $8 per unit

electric power per unit = $5,000 / 5,000 units = $1 per unit

total variable cost per unit = $8 + $1 = $9

Total variable costs for 8,000 units = 8,000 units x $9 per unit = $72,000

Total fixed costs = $25,000

4 0
3 years ago
A. property rights are closely linked to the degree with which individuals use their entrepreneurial skills.
skad [1K]

What exactly is the question?

6 0
3 years ago
Psychographic analysis and behavioral analyses are examples of methods of ________. market research marketing market segmentatio
Anni [7]

Psychographic analysis and behavioral analyses are examples of methods of market segmentation positioning.

Market research is the process of determining the feasibility of a new service or product through research conducted directly on potential customers. Market research allows companies to discover target markets and collect consumer opinions and other feedback regarding their interest in products and services.

Most business ideas come from entrepreneurs who recognize a need for a product or service.

The psychographic analysis includes personality traits, lifestyle, social class, habits, behaviors, and interests. Each of these unique psychological factors strongly influences consumer behavior. These factors are then used to segment the audience based on their psychographic composition.

Learn more about Psychographic analysis at

brainly.com/question/13361203

#SPJ4

8 0
2 years ago
Other questions:
  • _____________, which can be approximated by the growth of gross domestic product, ultimately determines the prevailing standard
    6·1 answer
  • Cycle Sporting Goods sells bicycles throughout the northeastern United States. The following data were taken from the most recen
    15·1 answer
  • Pickard company pays its sales staff a base salary of $5,200 a month plus a $2.80 commission for each product sold. if a salespe
    9·1 answer
  • 2. Someone looking to buy a franchise needs to consider the brand's failure rate. For
    6·1 answer
  • Suppose you get for free one of following two securities: (a) an annuity that pays $10,000 at the end of each of the next 6 year
    5·1 answer
  • Sheffield Corp. has the following transactions related to notes receivable during the last 2 months of 2020. The company does no
    7·1 answer
  • The postponement of a project until conditions are more favorable: I. is a valuable option. II. is referred to as the option to
    10·1 answer
  • When did banks of deposit first arise?
    8·1 answer
  • I.magination is i.mportant to P.roductivity at G.oog.le.
    5·2 answers
  • As a general rule what percentage of debt to gdp
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!