Erik is an investor with $5,000 available for investment. he has the following three investment possibilities from which to choose: option scenarios 1 keep the $5,000 in cash for one year. 2 invest in a friend’s business with a 50% chance of getting $10,000 after one year and a 50% chance of getting nothing. 3 invest in a relative’s business with a 30% chance of getting $15,000 after one year, 20% chance of getting $2,500 after one year, 50% chance of getting nothing. if erik is indifferent about these three investment options, and he thinks that they are worth the same to him. therefore, which of the following statements is true about erik? he is risk-neutral. he is risk-averse. he is risk-loving. none of these descriptions is accurate. later, while examining the same investment alternatives, erik’s brother, devin, clearly expressed a preference for option 1. which of the following statements is true about devin? he is risk-averse. he is risk-neutral. he is risk-loving. none of the above.

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]

One of the benefits of a well designed ergonomic work environment is low operating costs is true or false

During the current year, luis university received a $50,000 gift from an alumna who specified that it must be used to pay travel costs for faculty to attend health care conferences in foreign countries. during the year the university spent $8,000 to support travel to a health care conference in italy. the $8,000 disbursement will cause a net decrease in which class of net assets?