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Question
The information in the table below describes choices for a new doctor. The outcomes represent different macroeconomic environments, which the individual cannot predict.Table 5.3
| Outcome 1 | Outcome 2 | |||
| Job Choice | Prob. | Income | Prob. | Income |
| Work for HMO | 0.95 | $100,000 | 0.05 | $60,000 |
| Own practice | 0.2 | $250,000 | 0.8 | $30,000 |
| Research | 0.1 | $500,000 | 0.9 | $50,000 |
A) highest for the HMO choice, and it is $76,000.
B) lowest for the HMO choice.
C) higher for owning one's own practice than for going into research.
D) higher for the HMO choice than for going into research.
Answer
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Related questions
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Q:
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Q:
Scenario 14.4:
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TP = 100L - 0.125L2 MP = 100 - 0.25L
where L is the amount of labor employed. The supply curve for labor and the marginal expenditure curve for labor are given as follows:
L = PL -5 MEL = 2L + 5
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Use the following statements to answer this question:
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Q:
Scenario 14.3:Suppose that a firm's demand curve for its product is as follows: Output Price of the Good 25 9 40 8 54 7 67 6 79 5 90 4Also suppose that labor is the only variable input of production, and that the total product of labor is: Amount of Total Output Labor 2 25 3 40 4 54 5 67 6 79 7 90Refer to Scenario 14.3. What is the marginal profit from hiring the third unit of labor?A) 30B) 65C) 85D) 225E) none of the above
Q:
Scenario 14.3:Suppose that a firm's demand curve for its product is as follows: Output Price of the Good 25 9 40 8 54 7 67 6 79 5 90 4Also suppose that labor is the only variable input of production, and that the total product of labor is: Amount of Total Output Labor 2 25 3 40 4 54 5 67 6 79 7 90Given the data in Scenario 14.3, how much labor should the firm employ if labor costs $30 a unit?A) 3 units of laborB) 4 units of laborC) 5 units of laborD) 6 units of laborE) 7 units of labor
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Q:
An increase in technology that enhances labor productivity will likely result in:
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B) an increase in labor employment and an increase in the wage rate.
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Q:
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Q:
If leisure is a normal good, then the income effect of a decrease in wage will
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D) increase the sum of leisure plus hours worked.
Q:
The marginal revenue product can be expressed as the
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B) increment to revenue received from one additional unit of input hired.
C) marginal physical product of an input times the average revenue received from the sale of the product.
D) average physical product of the input times the marginal revenue received from the sale of the final product.