This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The above figure shows the utility of wealth curve for a homeowner whose only possession is a 50,000 ... (Read 142 times)

savannahhooper

  • Hero Member
  • *****
  • Posts: 576
on: Jun 29, 2018
The above figure shows the utility of wealth curve for a homeowner whose only possession is a 50,000 house. If there is a 20 percent chance that the home could be completely destroyed, would this homeowner buy insurance?
 
  A) No, because the homeowner is not risk averse.
  B) Yes, at any price because the homeowner is risk averse.
  C) Yes, but only if it costs less than 10,000.
  D) Yes, but only if it costs less than 20,000.

Question 2

In the figure above, when 20 units are produced the marginal cost is
 
  A) less than 8.
  B) 8.
  C) more than 8 and less than 16.
  D) None of the above answers is correct.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

djofnc

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

A


savannahhooper

  • Hero Member
  • *****
  • Posts: 576
Reply #2 on: Jun 29, 2018
Thank you :)


djofnc

  • Sr. Member
  • ****
  • Posts: 318
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

A cartoon of “King Andrew the First” shows Jackson standing atop the U.S. Constitution—a scepter in A cartoon of “King Andrew the First” shows Jackson standing atop the U.S. Constitution—a scepter in
Paul Colin, Figure of a Woman. Paul Colin, Figure of a Woman.
Graph shows the living arrangements of Canadian seniors Graph shows the living arrangements of Canadian seniors
A karyotype shows this child has three copies of chromosome 21. A karyotype shows this child has three copies of chromosome 21.
If the frequency equals 60 Hz in Figure 10-1, what is the value of capacitance? If the frequency equals 60 Hz in Figure 10-1, what is the value of capacitance?
What is the total resistance of the circuit in Figure 1? 150 What is the total resistance of the circuit in Figure 1? 150
Video: PET Scan Animation

For a complete list of videos, visit our video library