Author Question: An increase in Todd's wealth from 2 million to 4 million raises his utility from 400 units to 500 ... (Read 72 times)

vHAUNG6011 · **on:** Jun 29, 2018

An increase in Todd's wealth from 2 million to 4 million raises his utility from 400 units to 500 units. If he has a utility of wealth curve with the typical shape showing risk aversion, then with a wealth of 6 million his utility might be

A) 500 units.
B) 570 units.
C) 600 units.
D) 620 units.

Question 2

The table above gives the demand schedule for water bottled by Wanda's Healthy Waters. Wanda's marginal cost is a constant 4 a bottle and has no fixed cost. Wanda's makes an economic profit of ________ a day.

A) 0
B) 24
C) 36
D) 60