There are two states of the world. In state one the person receives one hundred dollars. In state two the person receives fifty dollars. If the person is rational and their expected return is $87.50, then the probability with which state one occurs must be
a. 0.25.
b. 0.50.
c. 0.75.
d. 1.00.
c. 0.75.
Economics
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The above figure shows the demand and marginal cost curves for a monopoly. The deadweight loss of this monopoly equals
A) h. B) c. C) c + f. D) c + d + e + f.
Economics
When all firms and potential firms in a market have the same cost curves, the long-run equilibrium of a competitive market with free entry and exit will be characterized by firms
a. earning small but positive economic profits. b. facing the prospect of future losses. c. operating at the efficient scale. d. that work together to raise market prices.
Economics