User Account

All Pages

Consumer with utility function

Assignment Help Macroeconomics
Reference no: EM131049433

A consumer with utility function u(x) =√x wants to purchase full insurance from Company Z. However, he doesn't know how much the premium, Q, will be. It may be $10,000or $20,000 with equal probability. The consumer's wealth is $100,000 and the potential loss is $25,000. How much is the consumer willing to pay to know with certainty whether the premium is $10,000?

Reference no: EM131049433

Questions Cloud

Progress and describe the results in sentences : Nick has a goal to pay his credit card balance in full by June 30. When he first wrote the goal in December, his balance was $2,500. It is now April, and he can pay all except $200. Evaluate his progress and describe the results in one to two sent..
Sdlc in practice community action : The systems development life cycle (SDLC) provides a structured problem-solving software development methodology. What works for information system-related problems, however, also works for many business problems, too. The SDLC provides a framewor..
Determine the type of consumer : All of the answers are included, but can someone explain how to get these answers? Suppose there are two types of consumers. The demand for each type of consumer is given by:
What rights or remedies are available to hannah : MLC101 Business Law - The Bolt Worldly advertisement is in contravention of any provisions under the ACL and bolt is in breach of the guarantee provisions under the ACL. What rights or remedies (if any) are available to Hannah?
Consumer with utility function : A consumer with utility function u(x) =√x wants to purchase full insurance from Company Z. However, he doesn't know how much the premium, Q, will be. It may be $10,000or $20,000 with equal probability.
Managed care provider centene : Managed care provider Centene has just finished deploying a new financial system. CIO Don Imholz says the project, which involved multiple PeopleSoft modules as well as financial planning and reporting software from Hyperion, was completed "very q..
Wtite global summary on article ask the cognitive scientist : Wtite global summary about the article "Ask the Cognitive Scientist Do Students Remember What They Learn in School?" By Daniel T. Willingham.
Calculate contributions to air pollution : A quote from the Earth Policy Institute summed up air pollution from vehicles this way, "while only some motorists contribute to traffic fatalities, all motorists contribute to air pollution fatalities."
Analyze the residuals from the given linear regression model : Fit a simple linear regression model to the data. Test for significance of regression. Analyze the residuals from this model.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd