The Manager's Utility Function for Profit Is U $\pi$ )= 50 $\pi$

question 45

Multiple Choice

The manager's utility function for profit is U( $\pi$ ) = 50 $\pi$ ,where $\pi$ is the dollar amount of profit.The manager is considering a risky decision with the four possible profit outcomes shown below.The manager makes the following subjective assessments about the probability of each profit outcome: $$\begin{array} { c c } \text { Probability } & \text { Profit outcome (\$) } \\\hline 0.20 & - \$ 15,000 \\0.30 & - \$ 5,000 \\0.30 & \$ 5,000 \\0.20 & \$ 25,000\end{array}$$ The marginal utility of an extra dollar of profit is __________.

• A)0.20
• B)0.30
• C)1.0
• D)10
• E)none of the above

Understand the purposes and benefits of various types of feeding methods including gastrostomy tube, parenteral nutrition, and enteral tube feedings.

Describe the role and significance of vitamins, minerals, and diet in maintaining health and managing disease.

Recognize the importance of carefully monitoring and adjusting patients’ diets based on their specific health conditions, including heart failure, stroke, cancer, and nutritional deficiencies.

Evaluate and apply knowledge of dietary reference intakes, recommended dietary allowances, and upper intake levels in the context of patient care.

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Definitions:

Balance Sheet

A financial statement that presents a company’s assets, liabilities, and shareholders' equity at a specific point in time.

Periodic Inventory System

A periodic inventory system is an accounting method where inventory levels and the cost of goods sold are updated in the financial records at the end of an accounting period, not continuously.

Cost of Merchandise Sold

The total expense of buying or manufacturing the goods sold by a business during a specific period.

Sales

The total amount of money received from selling goods or services over a specific period.