Farmer jones is producing wheat and must accept the market price of $6.00 per bushel. at this time, her average total costs and her marginal costs both equal $8.00 per bushel. her average variable costs are $5 per bushel. in order to maximize profits or minimize losses in the short run, farmer jones should ) increase output.(b) increase selling price.(c) produce zero output and close down.(d) continue producing, but reduce output.

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Gyou are in charge of making the work schedule for the next two weeks. typically this is not a difficult task as you work at a routine 8am – 5pm company. however, over the next two weeks you are required to schedule someone to be in the office each saturday. after contemplating this for a few days you make the schedule and assignments. before posting the schedule for everyone you decide that it is a good idea to meet personally with the two people you have scheduled to work the weekend. what do you say to them? what is your desired outcome?

Why does munger believe it is so important to have multiple models in your head? how might the use of multiple models be used as a corrective measure for the sometimes inappropriate use of the judgmental heuristics described in tversky and kahneman?