A risk-averse investor will decide whether or not to invest by determining if the expected value of the investment if positive
Indicate whether the statement is true or false
False. A risk-averse investor will examine the expected utility from investing. If the expected utility from investing is larger than the expected utility from not investing the investment will be made.
Economics
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If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
Economics
For a firm in a perfectly competitive industry, which of the following is TRUE?
A. MR > P B. MR < P C. MR = P D. AVC = ATC
Economics