Figure 4-5 ​

question 211

Multiple Choice

Figure 4-5
​
Firm A
Firm B
-Refer to Figure 4-5. If these are the only two sellers in the market, then the market quantity supplied at a price of $8 is

• A)16 units.
• B)12 units.
• C)33 units.
• D)28 units.

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Definitions:

Expected Utility

A theory in economics that explains how people make decisions under uncertainty, based on the anticipated satisfaction or utility from outcomes.

Risk-averse

A description of an individual or entity that prefers to avoid risk, often opting for the less risky of available options.

Probability

A measure of the likelihood or chance that a particular event will occur, expressed as a number between 0 and 1.

Expected Total Utility

The sum of satisfaction or benefit that an individual expects to receive from consuming goods or services.