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 147 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?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Pneumothorax. Figure illustrates how puncture of thoracic wall and tearing of pleural membrane allow Pneumothorax. Figure illustrates how puncture of thoracic wall and tearing of pleural membrane allow
Mononucleosis is caused by the Epstein–Barr virus. Symptoms of the infectious disease are swollen pa Mononucleosis is caused by the Epstein–Barr virus. Symptoms of the infectious disease are swollen pa
The graph shows the effect of sonic tuning of the intake manifold runners. The longer runners ... The graph shows the effect of sonic tuning of the intake manifold runners. The longer runners ...
Monitoring shows that many forms of air pollution have decreased Monitoring shows that many forms of air pollution have decreased
Bacteria growth curve Bacteria growth curve
Which of the following reactions correctly shows the transmutation of an element by neutron ... Which of the following reactions correctly shows the transmutation of an element by neutron ...
Video: Humerus Adduction Animation

For a complete list of videos, visit our video library