User Account

All Pages

Utility of no insurance for the safe diver

Assignment Help Business Economics
Reference no: EM131405509

Suppose the Ajax Insurance Company provides insurance for skydivers whose wealth before diving is $400. An accident will leave divers with a wealth of $100. The company divides the divers into two classes: safe (probability of an accident = 0.2) and unsafe (probability of an accident = 0.5). The utility of wealth for all divers is given by the function: U(w) = w0.5. The utility of no insurance for the safe diver is:

  • 15.
  • 17.3.
  • 18.
  • 18.3.
  • none of the above.

Reference no: EM131405509

Questions Cloud

Monopolist profit-maximizing output and price : Consider a market in which the market demand is given by P = $900 - Q. Suppose a single-price monopolist with MC = $100 controls the market. a. Calculate the monopolist's profit-maximizing output and price.
What is the expected value of npv : A franchise restaurant chain is considering a new store in an unserved part of town. Its finance group estimates NPV of $10 million if the population growth is 10% (40% probability) an NOV of $4million if the population does not grow (30% probabil..
Identify three reasons domestic corporations would expand : Identify three reasons domestic corporations would expand into other countries. Describe risks a domestic company could expect to encounter when expanding to other countries.
How does wph approach to ethics approach an ethical problem : How do business ethics and business law interact with each other? Is one highly ethical and the other less ethical?If business ethics does not offer guidance about what is always the right thing to do, is one behavior as good as the next?How does the..
Utility of no insurance for the safe diver : Suppose the Ajax Insurance Company provides insurance for skydivers whose wealth before diving is $400. An accident will leave divers with a wealth of $100. The company divides the divers into two classes: safe (probability of an accident = 0.2) a..
Bad driver expected utility without insurance : Good drivers have a 20% chance, and bad drivers have a 50% chance, of getting into an accident. A car is worth $900, and an accident would reduce its value to $400. Both types of drivers have utility U = (car value)0.5. What is a bad driver's expe..
What are the companys most significant internal risk : MBA 640- What are the company's most significant internal risks and opportunities related to the project? How might they affect your financial estimates and how will you address them?
Discuss about the given scenario below : A paralegal who can write accurate detailed briefs is invaluable to an attorney. Thus, it is essential that you develop the legal research and writing skills to become an effective brief writer.Throughout this course, we have continued to develop ..
What is the price elasticity of demand for taxi rides : The figure to the right illustrates the demand for taxi rides in a large city. Suppose the price per ride is initially $1515 but then falls to $1010 due to a recession. What is the price elasticity of demand for taxi rides?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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