Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Economics Alina, whose Bernoulli utility function is given by u(w} = w0-5, participates in a lottery which pays her $2 with probability 0.3, $13 with
Economics Alina, whose Bernoulli utility function is given by u(w} = w0-5, participates in a lottery which pays her $2 with probability 0.3, $13 with probability 0.3, and $17 otherwise. What is her certainty equivalent? {Round your nal answer to two decimal places, if necessary.) Consider a perfectly-competitive industry where each rm has the following long run cost function C(q) = as - 17in2 + 96a. where q is the rm's output. What is the long-run equilibrium price in this market? (Round your nal answer to two decimal places, if necessary.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started