Answered: In the long run, which plan has the…

In the long run, which plan has the higher payout? Plan A Payout P(Payout) −$35,000 0.57 $30,000 0.07 $65,000 0.36 Plan B Payout P(Payout) −$35,000 0.17 −$20,000 0.49 $90,000 0.34

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 14E

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Question

In the long run, which plan has the higher payout?

Plan A

Payout	P(Payout)
−$35,000	0.57
$30,000	0.07
$65,000	0.36

Plan B

Payout	P(Payout)
−$35,000	0.17
−$20,000	0.49
$90,000	0.34

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