Ecn601 topic 6 problems - Study guides, Class notes & Summaries

1. Question: The expected value of an uncertain outcome is: 2. Question: If your uncle offers you a deal with an expected value much greater than your cost to take part: 3. Question: You have to choose between risky options A and B. You calculate the expected value of A is greater than the expected value of B by am3%. Your likely course of action is: 4. Question: You have to decide whether to sell widgets for $5 or $6 when your marginal cost is $3. In the past, you have had 15% success mak...

CHAPTER 17 1. Question: The expected value of an uncertain outcome is: 2. Question: If your uncle offers you a deal with an expected value much greater than your cost to take part: 3. Question: You have to choose between risky options A and B. You calculate the expected value of A is greater than the expected value of B by am3%. Your likely course of action is: 4. Question: You have to decide whether to sell widgets for $5 or $6 when your marginal cost is $3. In the past, you have had 15%...

Chapter 4 1. Question: Memorial Hospital's CEO conducted performance reviews of the hospital’s departments and discovered that the average cost of deliveries ($5,000) was above their average revenue, and that the hospital was losing $700 on each delivery. From the information on how much the hospital is losing on deliveries, what is the change in profit for each extra delivery? 2. Question: Georgetown Public Media is trying to determine the optimum amount for its advertising budget. Calcula...

Chapter 4 1. Question: Memorial Hospital's CEO conducted performance reviews of the hospital’s departments and discovered that the average cost of deliveries ($5,000) was above their average revenue, and that the hospital was losing $700 on each delivery. From the information on how much the hospital is losing on deliveries, what is the change in profit for each extra delivery? 2. Question: Georgetown Public Media is trying to determine the optimum amount for its advertising budget. Calcula...

Chapter 4 1. Question: Memorial Hospital's CEO conducted performance reviews of the hospital’s departments and discovered that the average cost of deliveries ($5,000) was above their average revenue, and that the hospital was losing $700 on each delivery. From the information on how much the hospital is losing on deliveries, what is the change in profit for each extra delivery? 2. Question: Georgetown Public Media is trying to determine the optimum amount for its advertising budget. Calculat...

ECN 601 Topic 6 Problems; Chapter 17, 19, 20

1. Question: The expected value of an uncertain outcome is: 2. Question: If your uncle offers you a deal with an expected value much greater than your cost to take part: 3. Question: You have to choose between risky options A and B. You calculate the expected value of A is greater than the expected value of B by am3%. Your likely course of action is: 4. Question: You have to decide whether to sell widgets for $5 or $6 when your marginal cost is $3. In the past, you have had 15% success mak...

Chapter 4 1. Question: Memorial Hospital's CEO conducted performance reviews of the hospital’s departments and discovered that the average cost of deliveries ($5,000) was above their average revenue, and that the hospital was losing $700 on each delivery. From the information on how much the hospital is losing on deliveries, what is the change in profit for each extra delivery? 2. Question: Georgetown Public Media is trying to determine the optimum amount for its advertising budget. Calcula...