Question: Alex is considering a job, which is based on commission and pays $300 with 50% probability and $900 with 50% probability. Given that Alex's utility

  1. Alex is considering a job, which is based on commission and pays $300 with 50% probability and $900 with 50% probability. Given that Alex's utility function is; Ux = U(X2), calculate the:
  2. Expected utility
  3. Utility of expected value
  4. Risk Premium
  5. Graphically show whether Alex is risk neutral, risk averse, or risk loving
  7. The cost and revue structure of a manufacturing company are as follows:

TC = 200 + 10Q + 2Q2

TR = 90Q - 2Q2

  1. Determine the profit function of the company
  2. Calculate the profit maximizing level of output
  3. Calculate the profit/losses of the company

  1. Given the following demand and supply functions:

Qd = 100 - 6P Qs = 28 + 3P

  1. Determine the equilibrium price and quantity demanded and supplied
  2. If the government imposed maximum price at N5, what will be the effect on quantity demand and supply?
  3. If the government imposed minimum price at N10, what will be the effect on quantity demand and supply?

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