Author Question: Adriana wants to try working as an independent contractor this summer. She has a 50 percent chance ... (Read 18 times)

arivle123 · **on:** Jun 29, 2018

Adriana wants to try working as an independent contractor this summer. She has a 50 percent chance that she will make 9,000 and 50 percent chance that she will make nothing. Her utility of wealth curve is shown in the figure above.

What's Adriana's cost of risk? A) 2,500
B) 2,000
C) zero
D) 40

Question 2

The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is 200 and workers cost 10 per hour. The average total cost of producing 4 baseball hats per hour is

A) 1.67.
B) 50.00.
C) 52.50.
D) More information is needed to answer the question.