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 148 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?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

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.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Hong Kong is a strange situation. A British colony since 1842, it was handed back to China in 1997 a Hong Kong is a strange situation. A British colony since 1842, it was handed back to China in 1997 a
James Madison was a key figure at the Constitutional Convention of 1787 in Philadelphia. He not only James Madison was a key figure at the Constitutional Convention of 1787 in Philadelphia. He not only
Lewis Hine’s 1910 photograph shows a tenement alley in New York City. More famous for his “unsettlin Lewis Hine’s 1910 photograph shows a tenement alley in New York City. More famous for his “unsettlin
The upper panel shows that scores of four diverse samples of boys on a moral reasoning test show a ... The upper panel shows that scores of four diverse samples of boys on a moral reasoning test show a ...
Construct a Lorenz curve that shows income distribution in this society. Construct a Lorenz curve that shows income distribution in this society.
A 1000-kg car is slowly picking up speed as it goes around a horizontal unbanked curve whose ... A 1000-kg car is slowly picking up speed as it goes around a horizontal unbanked curve whose ...
Video: Types of energy transfer reactions: oxidation-reduction reactions and ATP generation reactions

For a complete list of videos, visit our video library