What is the expected payoff of an investment that yields $5,000 with a probability of 0.15 and $500 with a probability of 0.85?

Which of the following formulas indicate that a firm should shut down?

a. (P × q) > VC b. (P × q)/q < VC/q c. (P × q) > VC/q d. (P × q)/q < VC

Monetarists use the equation of exchange to predict the effects of changes in M on

A. velocity. B. nominal GDP. C. real GDP. D. the price level.