Lori, who is risk averse, has two pieces of jewelry, each worth $1,000. she plans to send them to her sister's firm in thailand to be sold there. she is concerned about the safety of shipping them. she believes that the probability that any box shipped will not reach its destination is theta. is her expected utility higher if she sends the articles together or in two separate shipments? lori's expected utility is a. higher if she sends the jewelry to thailand in separate boxes regardless of her preferences for risk. b. higher if she sends the jewelry to thailand in one box regardless of her preferences for risk. c. higher if she sends the jewelry to thailand in separate boxes because she's risk averse. d. the same whether she sends the jewelry to thailand in one box or in separate boxes. e. higher if she sends the jewelry to thailand in one box because she's risk averse.

Why do you think the compensation plans differ at the two firms? in particular, why do you think kaufmann’s pays commissions to salespeople, while parkleigh does not? why does parkleigh offer employees discounts on purchases, while kaufmann’s does not?

The monthly demand equation for an electric utility company is estimated to be p equals 60 minus left parenthesis 10 superscript negative 5 baseline right parenthesis x, where p is measured in dollars and x is measured in thousands of killowatt-hours. the utility has fixed costs of $3 comma 000 comma 000 per month and variable costs of $32 per 1000 kilowatt-hours of electricity generated, so the cost function is upper c left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 32 x. (a) find the value of x and the corresponding price for 1000 kilowatt-hours that maximize the utility's profit. (b) suppose that the rising fuel costs increase the utility's variable costs from $32 to $38, so its new cost function is upper c 1 left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 38 x. should the utility pass all this increase of $6 per thousand kilowatt-hours on to the consumers?

Some years ago it was estimated that the demand for steel approximately satisfied the equation p=194-25x x, and the total cost of producing x units of steel was upper c left parenthesis x right parenthesis equals 145 plus 40 x. (the quantity x was measured in millions of tons and the price and total cost were measured in millions of dollars.) determine the level of production and the corresponding price that maximize the profits.