Dear tutor, please solve ALL THE QUESTİONS, PLEASE... THANK YOU SO MUCH!!! 16. If a payout is certain to occur, then the variance of that payout equalsC) the expected value.A) zero.B) one.D) the expected value squared.17. If a person is entertained by gambling, thenA) she is not risk averse.B) she does not understand the concept of a fair game.C) she may gamble even if it is an unfair game.D) she will definitely not buy automobile insurance.18. Catherine is risk averse. When faced with a choice between a gamble and a certainlevel of wealth, she willA) always prefer the gamble.B) always prefer the certain level of wealth.C) prefer the gamble if the expected utility from it is higher than the utility from the certainlevel of wealth.D) prefer the certain level of wealth if the expected utility from the gamble is higher than theutility of the certain level of wealth.19. Which of the following helps to reduce risk?A) abstain from risk takingc) diversifyB) obtain more informationD) All of the above.20. Which of the following helps to reduce risk?A) abstain from risk takingc) diversifyB) obtain more informationD) All of the above.21. If children go to school and become productive members of society,A) a negative extemality is created by the schools.B) a positive externality is created by the schools.C) no externality is created by the schools.D) an extemality is created that may be positive or negative.22. Students who talk loudly with each other in classA) create an extemality because other students cannot follow the lecture as well.B) disturb nobody.C) benefit the other students in class because they engage in conversation.D) only create an extemality if they talk about something unrelated to class.23. The price of pie increases. Some people who purchased pie before the price increaseno longer purchase pie. This isA) a positive extemality.B) a negative extemality.C) a positive externality for some consumers and a negative extermality for others.D) not an externality. 9. One firm previously operated as a monopoly. Now, one potential entrant exists.Consumers would preferA) entry, and the firms to split the output equally.B) no entry, and for the incumbent to produce the Stackelberg leader level of output.C) entry, and for the incumbent to produce the Stackelberg leader level of output.D) no entry, and the monopoly to continue.10. If only two identical firms operate in a market, consumers preferA) a Cournot equilibrium.B) a Stackelberg equilibrium.C) a collusive equilibrium.D) any equilibrium, since they all result in the same consumer surplus.11. In a Bertrand model, graphically, the intersection of all firms' best-response curvesdeteminesA) the Nash equilibrium prices.C) the degree of product differentiation.B) the dominant strategy for each fim.D) the price of the market leader.12. In the long run, a monopolistically competitive firmA) earns zero economic profit.C) operates at full capacity.B) produces at minimum average cost.D) All of the above.13. Although he is very poor, Al plays the million-dollar lottery every day because he iscertain that one day he will win. Al makes this calculation based uponA) the frequency of past outcomes.C) knowledge of all possible outcomes.B) subjective probability.D) tossing a coin.14. Expected value representsA) the actual payment one expects to receive.B) the average of all payments one would receive if one undertook the risky event manytimes.C) the payment one receives if he or she makes the correct decision.D) the payment that is most likely to occur.15. On any given day, a salesman can earn $0 with a 40% probability, $100 with a 40%probability, or $300 with a 20% probability. His expected earnings equalA) $0.B) $100 because that is the most likely outcome.C) $100 because that is what he will earn on average.D) $200 because that is what he will earn on average.

A monopoly is a market structure where there are only one seller and many buyers. The seller has…

9. One firm previously operated as a monopoly. Now, one potential entrant exists. Consumers would prefer A) entry, and the firms to split the output equally. B) no entry, and for the incumbent to produce the Stackelberg leader level of output. C) entry, and for the incumbent to produce the Stackelberg leader level of output. D) no entry, and the monopoly to continue.