Fred is thinking of starting a bowling alley near a college campus. fred is an expected utility maximizer with utility function: u(w) = 1 – (3000/w), where w is his wealth. fred’s total wealth is $12,000. with probability 0.2 the alley will be a failure and he’ll lose $9,000, so that his wealth will be just $3,000. with probability 0.8 it will succeed and his wealth will grow to $x. what is the smallest value of x that would be sufficient to make fred want to invest in the bowling alley rather than have a wealth of $12,000 with certainty?

Agood for which demand increases as income rises is and a good for which demand increases as income falls is

John novosel was employed by nationwide insurance company for fifteen years. novosel had been a model employee and, at the time of discharge, was a district claims manager and a candidate for the position of division claims manager. during novosel's fifteenth year of employment, nationwide circulated a memorandum requesting the participation of all employees in an effort to lobby the pennsylvania state legislature for the passage of a certain bill before the body. novosel, who had privately indicated his disagreement with nationwide's political views, refused to lend his support to the lobby, and his employment with nationwide was terminated. novosel brought two separate claims against nationwide, arguing, first, that his discharge for refusing to lobby the state legislature on behalf of nationwide constituted the tort of wrongful discharge in that it was arbitrary, malicious, and contrary to public policy. novosel also contended that nationwide breached an implied contract guaranteeing continued employment so long as his job performance was satisfactory. what decision as to each claim?

Question 55 ted, a supervisor for jack's pool supplies, was accused of stealing pool supplies and selling them to friends and relatives at reduced prices. given ted's earlier track record, he was not fired immediately. the authorities decided to give him an administrative leave, without pay, until the investigation was complete. in view of the given information, it would be most appropriate to say that ted was: demoted. discharged. suspended. dismissed.