Fenton and Farrah Friendly, husband-and-wife car dealers, are soon going to open a new dealership. They have two offers: from a foreign compact car company and from a U. S. producer of full sized cars. The success of each type of dealership will depend on how much gasoline is going to be available during the next few years. The profit from each type of dealership, given the availability of gas, is shown in the following payoff table:
Gasoline Availability
Dealership Shortage Surplus expected value
.6 .4
Compact cars $300,000 $150,000 $240,000
Full-sized cars –100,000 600,000 $180,000
Trucks 120,000 170,000 $140,000
A. Determine which type of dealership the couple should purchase using the expected value criterion.
B. Determine the expected value of perfect information.

How are interest rates calculated by financial institutions? financial institutions generally calculate interest as (1) interest or (.

Buyer henry is going to accept seller shannon's $282,500 counteroffer. when will this counteroffer become a contract. a. counteroffers cannot become contracts b. when henry gives shannon notice of the acceptance c. when henry signs the counteroffer d. when shannon first made the counteroffer

The interaction of individual choices because a type of fish is on the verge of extinction, the government imposes rules that prohibit fishing in the publicly owned spawning grounds. at first owners of fshing bouts complain about this restriction on where they can fish, but soon they notice that the number of adult fish swimming outside the protected area is much higher than it was before. with the restriction, each fishing boat ends up catching more fish than it did before the r which of the following principles of economic interaction best describes this scenario? o there is a tradeoff between equality and efficiency o markets usually lead to efficiency. o when markets do not achieve efficiency,government intervention can improve overall welfare o markets allocate goodseffectively