Van, whose utility of wealth curve is shown in the above figure, ...

[ts19998]

Van, whose utility of wealth curve is shown in the above figure, owns a home that is valued at 100,000. There is a 10 percent chance that the house will be destroyed by hurricane. The value of insurance to Van is
 
  A) 10,000.
  B) 15,000.
  C) 20,000.
  D) 30,000.

Question 2

A merger will be challenged by the FTC in a market where the Herfindahl-Hirschman Index (HHI) is ________, and the merger would increase it to ________.
 
  A) 2,900; 3,100.
  B) 1,700; 1,760
  C) 800; 950
  D) 2,000; 2,040

[beccamahon]

Answer to Question 1

D

Answer to Question 2

A

[ts19998]

Correct answers!

[beccamahon]

Great! Please up vote