This topic contains a solution. Click here to go to the answer

Author Question: John's utility of wealth curve is shown in the above figure. He currently has wealth of 20,000, and ... (Read 71 times)

james9437

  • Hero Member
  • *****
  • Posts: 568
John's utility of wealth curve is shown in the above figure. He currently has wealth of 20,000, and there is a 25 percent chance that he could lose it all. If an insurance company offers to insure against this loss for 6,000, John will
 
  A) buy the policy.
  B) not buy the policy.
  C) be indifferent between being insured and uninsured.
  D) There is not enough information to answer.

Question 2

In the above figure, curve D slopes downward because
 
  A) average fixed costs decrease as output increases.
  B) all costs decrease as output increases.
  C) there are diminishing returns.
  D) there are decreasing marginal costs.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

peilian

  • Sr. Member
  • ****
  • Posts: 316
Answer to Question 1

A

Answer to Question 2

A




james9437

  • Member
  • Posts: 568
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review


Perkypinki

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

For a complete list of videos, visit our video library