Agovernment subsidizes the production of a product. what will happen to allocative efficiency? what will happen to total utility received by the consumers? a. too much is produced for allocative efficiency. total utility increases. b. too much is produced for allocative efficiency. total utility decreases. c. too little is produced for allocative efficiency. total utility increases. d. too little is produced for allocative efficiency. total utility decreases.

Aplant manager is considering buying additional stamping machines to accommodate increasing demand. the alternatives are to buy 1 machine, 2 machines, or 3 machines. the profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. the payoff table below illustrates the profits realized (in $000's) based on the different scenarios faced by the manager. alternative bid accepted bid rejected buy 1 machine $10 $5 buy 2 machines $30 $4 buy 3 machines $40 $2 refer to the information above. assume that based on historical bids with the defense contractor, the plant manager believes that there is a 65% chance that the bid will be accepted and a 35% chance that the bid will be rejected. what is the expected value under perfect information (evpi)?