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1. Suppose a project has two possible outcomes. There is a 40% chance that it brings a profit of 10,000. There is a 60% chance that it brings a profit of 6,400. Suppose a decision makers utility function can be described by U(w)=w^0.5. What is this project's certainty equivalence for this decision maker?
2. A producer in a perfectly competitive industry has a cost function described by TC(q)=1400+4q+0.2q^2. If the market price is 40, what is the profit-maximizing quantity for the producer?
3. A producer in a perfectly competitive industry has a cost function described by TC(q)=1400+4q+0.2q^2. If the market price is 40 and it has already committed to paying the fixed cost, what is the maximum profit for the producer?
Mark complied with all formation requirements for incorporating his taxicab business. He is the sole shareholder in the corporation. The corporation owns two automobiles that Mark frequently uses for his own personal use.
The purchasing Department grips purchases for a growing family company. Few purchase orders arrive on the proper forms however others are memos or handwritten notes that are barely legible.
The company has decided to produce at least twice as many laptop computers as desktop computers.
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