« previous next »

Author Question: Assume that the utility function of an individual is represented as U = W - 0.001W; where W (his ... (Read 61 times)

pane00

  • Hero Member
  • *****
  • Posts: 579
on: Jun 30, 2018
Assume that the utility function of an individual is represented as U = W - 0.001W; where W (his present wealth) = 250,000 . He considers investing in a gamble which would double his wealth if he wins but still leave him with 250,000 if he loses. Given that his probability of winning is 0.6, calculate his expected utility of taking the bet.
 a. 157 units
  b. 250 units
  c. 207.11 units
  d. 224.3 units

Question 2

In the consumption of public goods
 A) consumers can be excluded.
  B) free riders can be excluded.
  C) consumers cannot be excluded.
  D) government is excluded.


Beatricemm

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

How to plot a sine function containing an amplitude and phase-shift (Question 2 of 3) How to plot a sine function containing an amplitude and phase-shift (Question 2 of 3)
How to shift and reflect a square root function using transformations How to shift and reflect a square root function using transformations
Structure and function of complex I (NADH–coenzyme Q reductase) Structure and function of complex I (NADH–coenzyme Q reductase)
Testing motor function of cranial nerve VII - Show teeth Testing motor function of cranial nerve VII - Show teeth
Integral of function p1 Integral of function p1
Sketch a graph of the function h(x), by hand on the following interval: Sketch a graph of the function h(x), by hand on the following interval:
Video: The Hypothalamus: The Body's Thermostat (Human Thermostat)

For a complete list of videos, visit our video library