Drag each tile to the correct location. Winona has saved enough money to start a small baking business at home. She plans to do the baking herself and hire only two assistants. She plans to supply her products to cafes and cake shops and also accept home orders.

Help Winona make a list of the factors of production she may need to get started.

.

convert a spare room
into a kitchen

eggs, milk, and frozen
chicken meat

ovens, baking trays, shovels,
storage racks, and containers

watch a video about
cake decorating

design a menu and website

attend a seminar on
chocolate making

make samples of different
pastries and distribute
them in the town’s cafes

Martha entered into a contract with terry, an art dealer. according to the contract, terry was to supply 18 th century artifacts to martha for the play she was directing, and martha was ready to pay $50,000 for this. another director needed the same artifacts and was ready to pay $60,000. terry decided not to sell the artifacts to martha. in this case, the court may order terry to:

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?

As task uncertainty and interdependence increase, are a more effective coordination mechanism than