Suppose Madagascar is willing to trade 40 rubies to Peru for each emerald that Per produces and sends to Madagascar. Which of the following combinations of emeralds and rubies could Peru then consume, assuming Pen specializes in emerald production?a. 3 emeralds and 220 rubies b. 2 emeralds and 240 rubies c. 4 emeralds and 200 rubies d. 5 emeralds and 140 rubies

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?