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 193 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?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

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
This label on a Toyota Camry hybrid shows the relative smog-producing emissions, but this does not ... This label on a Toyota Camry hybrid shows the relative smog-producing emissions, but this does not ...
EYEMA-O-BYERI (Reliquary Figure) EYEMA-O-BYERI (Reliquary Figure)
Marginal Supply - Demand Curve Marginal Supply - Demand Curve
Major bone (tan) and cartilage (light blue) elements of the human skeleton. Inset shows regions of v Major bone (tan) and cartilage (light blue) elements of the human skeleton. Inset shows regions of v
The age-of-onset curve for Huntington disease (HD) The age-of-onset curve for Huntington disease (HD)
Video: Baroreceptor Reflex

For a complete list of videos, visit our video library