Tonya lives in Texas. On a trip to Kansas her car broke down in Oklahoma. She used a gas station bathroom but did not buy gas. When she got to Kansas she refueled her vehicle and attended her conference where she ate food and purchased a trinket. She paid a sales tax on the trinket. On her way back she detoured to Colorado and marveled at the beauty of the bighorn sheep and the North American river otter. In which states was Tonya a free rider?

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?