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Author Question: If MPL = 3, and MRTS = -4 what is MPK? A) 12 B) -12 C) 3/4 D) ... (Read 11 times)

darbym82

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on: Jul 1, 2018
If MPL = 3, and MRTS = -4 what is MPK?
 
  A) 12
  B) -12
  C) 3/4
  D) -3/4

Question 2

Natasha is going to buy a risky asset that has an expected value of 62, which yields an expected utility of 146. Equivalently, she could get utility of 146 from a certainty equivalent of 43. What is Natasha's risk premium?
 
  A) 19
  B) 43
  C) 103
  D) 105


mistyjohnson

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Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

A


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