Refer to Scenario 5.9. Given that the probability of a positive faculty response is 75%, Torrid Texts' expected profit under complete information would be
A) $23.25 million.
B) $45 million.
C) $45.25 million.
D) $45.75 million.
E) $60 million.
D
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According to the monetarists, which of the following is true?
a. Instability in the money supply is the primary cause of economic instability. b. A reduction in the money supply will cause consumers to increase spending. c. A reduction in the money supply will cause a proportional reduction in wages and prices, leaving output unchanged. d. A rapid growth rate of the money supply will lead to a rapid growth rate of real GDP.
Which of the following is a function performed by market prices?
a. Market prices communicate information to buyers and sellers. b. Market prices coordinate the decisions of buyers and sellers. c. Market prices motivate entrepreneurs to produce those products that are currently most desired relative to their costs of production. d. All of the above are functions performed by market prices.