Show that buying and selling price are always equal, for a decision maker who has a...

Show that buying and selling price are always equal, for a decision maker who has a linear utility function.

Expert Solution

Rahul Sunny answered 4 hours ago

A decision-maker is a father who has two sons.They are going to purchase a new house....

A decision-maker is a father who has two sons.They are going to purchase a new house. Suppose there are five possible choices ω1, ω2, ... , ω5. The rankings of houses from the most favorite to the least favorite are as following: • Father: ω2, ω5, ω3, ω4, ω1; • Son 1: ω5, ω4, ω1, ω3, ω2; • Son 2: ω1, ω2, ω3, ω5, ω4. Suppose the decision-maker cares and only cares the feeling of his sons, and thus he...

A price floor is A. almost always equal to the price ceiling. B. the highest possible...

A price floor is A. almost always equal to the price ceiling. B. the highest possible legal price that can be charged for a good or service. C. the lowest legal price at which a good or service can be traded. D. a legal price of zero that can be charged for a good or service. E. usually equal to the equilibrium price established before the government imposed the price floor

Assume medical care is a normal good, if patient X, who is a rational decision maker,...

Assume medical care is a normal good, if patient X, who is a rational decision maker, just got a pay cut due to a bad economy, he would be more like to ________________. Group of answer choices pursue more medical care pursue less medical care remain unchanged in medical care consumption pursue health care regardless of its quality and price

Post one example from the news of a decision maker who uses framing and anchoring to...

Post one example from the news of a decision maker who uses framing and anchoring to attempt to influence a decision.

(House Selling Price) The data below show the selling price, square footage, bedrooms, and age of...

(House Selling Price) The data below show the selling price, square footage, bedrooms, and age of houses that have sold in a neighborhood in the last six months. Selling price Square footage Bedrooms Age 64,000 1,670 2 30 59,000 1,339 2 25 61,500 1,712 3 30 79,000 1,840 3 40 87,500 2,300 3 18 92,500 2,234 3 30 95,000 2,311 3 19 113,000 2,377 3 7 115,000 2,736 4 10 138,000 2,500 3 1 142,500 2,500 4 3 144,000 2,479...

Factory X who has a product with a selling price of $ 500 and annual sales...

Factory X who has a product with a selling price of $ 500 and annual sales of 6,000 units. Fixed costs are $ 40,000 and variable costs are $ 150,000 (both annually). Owners of Factory X could invest in an alternative business, Factory C in which they will have a profit of $ 150,000. What is the accounting profit of Factory X business? What is the economic profit of Factory X business?

Show that the Nelson-aalen estimates of S(t) are always greater than or equal to the PL...

Show that the Nelson-aalen estimates of S(t) are always greater than or equal to the PL estimates.

“Price is always equal to average revenue. It is a mathematical certainty.” Discuss this statement fully....

“Price is always equal to average revenue. It is a mathematical certainty.” Discuss this statement fully. Does this imply that P is always equal to marginal revenue as well?

A decision maker (DM) has a house worth $80,000 and $10,000 cash. These are all of...

A decision maker (DM) has a house worth $80,000 and $10,000 cash. These are all of his assets. There is a risk of a ﬁre in which case he will lose the house altogether. DM can insure against the ﬁre completely for a premium of $9,000. In other words, if he buys this insurance his assets will be worth $81,000, whether or not there is an accident. Probability of the ﬁre is 0.1. (a) (10 points) If the decision maker...

In perfect competition market, what will be your decision if Price equal to the Average Varaible...

In perfect competition market, what will be your decision if Price equal to the Average Varaible cost. explain in DETAIL the reason.

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