Graphic Design Business a High School Student,who Started Doing Graphic Designs as Graphic

question 13

Essay

Graphic Design Business
A high school student,who started doing graphic designs as a hobby,is considering going into the graphic design business.The anticipated payoff table is: The following prior probabilities are assigned to the states of nature: P(poor)= 0.4,P(fair)= 0.4,and P(super)= 0.2. ​ ​
-{Graphic Design Business Narrative} What is the expected value of perfect information? What does it mean?

---

Definitions:

Utility Maximization

The process by which consumers allocate their spending to maximize the total satisfaction or utility received from their available resources.

Utility Maximization

The process by which consumers allocate their income in a way that maximizes their overall satisfaction or utility.

Marginal-Utility Schedules

Tables or graphs showing the relationship between the quantity of a good consumed and the incremental satisfaction (utility) gained from consuming each additional unit.

Utility Maximization

An economic principle where consumers attempt to get the greatest satisfaction possible from their available resources.