Saturday
August 30, 2014

Homework Help: Economics

Posted by Susan on Saturday, December 5, 2009 at 6:35am.

Janice is producing a new product at marginal cost of 1, and by law she has to sell it for 2. She has to decide how much to produce before she learns the demand. All she knows is that demand will be 20 or 50, with equal probability. If she is just a little bit risk averse, how many units should she produce?

(A) 20 units.
(B) 50 units.
(C) 49 units.
(D) 34 units.
(E) None.

(Solution is A, 20 units)

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

advanced math - The marginal cost of a product can be thought of as the cost of ...
Algebra - 83. Minimizing Marginal Cost The marginal cost of a product can be ...
math - The daily cost C, in RM, of producing a product is C(x)=1000+72x-0.06x^2...
economics - Suppose a monopolist faces an inverse demand function P=100-1/2Q, ...
economic math - Imagine that you own a small business and that you have to ...
economics - a firm is planning to manufacture a new product. the sales ...
economics - a firm is planning to manufacture a new product. the sales ...
calculus - In your new job as a strategic planner at BusCalcInc, you have been ...
Managerial Economics - You own and operate PCs R Us, a firm that manufactures ...
Introduction programing visual basic - break even analysis. suppose a certain ...

Search
Members