16.1.18) Lisa runs a local flower shop, if it rains on Valentine's Day and she opens the shop, she will lose $200. If it does not rain on Valentine's Day, she will earn $500 dollars as profits. The chance of rain is 30%, the standard deviation of the profits Lisa could earn on Valentine's Day is

A) 198.17.B) 135.61.C) 432.43.D) 290.

Answer:A

Please explain why the answer is A. Thank you.

15.1.25) In the long run, a fall in the input price causes less of an increase in factor demand

A) if the increase of product supply affected price.

B) if the market price will decrease too.

C) if the market price remain constant.

D) if the factor demand is more elastic.

Answer:C

14.4.5) One firm previously operated as a monopoly. Now, one potential entrant exists. Consumers would prefer

A) entry, and the firms to split the output equally.

B) no entry, and for the incumbent to produce the Stackelberg leader level of output.

C) entry, and for the incumbent to produce the Stackelberg leader level of output.

D) no entry, and the monopoly to continue.

Answer:C

Please explain how these answers were determined. Show all the steps.. Thank you.