Unions can affect the demand for, but not the supply of, labor

Suppose a family has saved enough for a 10 day vacation (the only one they will be able to take for 10 years) and has a utility function U = V1/2 (where V is the number of healthy vacation days they experience). Suppose they are not a particularly healthy family and the probability that someone will have a vacation ruining illness (V = 0) is 30%. What is the expected value of V?

a. 10 b. 7 c. 3 d. 0

The most important advantages of bigness will be found in industries that show increasing returns to scale

a. True b. False Indicate whether the statement is true or false