=+b. Suppose that Natasha is currently earning an income of $40,000 (I 5 40) and can earn

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=+b. Suppose that Natasha is currently earning an income of $40,000 (I 5 40) and can earn that income next year with certainty. She is offered a chance to take a new job that offers a .6 probability of earning $44,000 and a .4 probability of earning $33,000.

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Microeconomics

ISBN: 9781292081977

8th Global Edition

Authors: Robert S. Pindyck, Daniel L. Rubinfeld

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