Instruction 17-2
the Following Payoff Table Shows Profits Associated with a Set

question 42

Multiple Choice

Instruction 17-2
The following payoff table shows profits associated with a set of three alternatives under two possible events.
$\begin{array} { c r r r } States & A 1 & A 2 & A 3 \\\hline 1 & 12 & - 2 & 8 \\2 & 4 & 10 & 5\end{array}$
where: $\quad S 1$ is event $1 \quad A 1$ is action alternative 1
$\quad\quad\quad\quad S 2$ is event $2 \quad A 2$ is action alternative 2
$\quad\quad\quad\quad\quad\quad\quad A 3$ is action alternative 3
-Referring to Instruction 17-2,if the probability of S1 is 0.5,then the expected profit under certainty (EPUC) is

• A)8.
• B)5.
• C)3.
• D)11.

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Definitions:

Tax on Sellers

A tax on sellers is a levy imposed by the government on sellers of certain goods and services, which often leads to a shift in supply curve and price adjustments.

Increases Supply

A rise in the quantity of a good or service that producers are willing and able to sell at a given price, often due to reductions in production costs or improvements in technology.

Tax on Sellers

A financial charge imposed by the government on sellers, which can shift the supply curve upward and affect market equilibrium.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.