What must he believe is the minimum probability that the

Assignment Help Microeconomics
Reference no: EM13339956

1. George is seen to place an even-money $100,000 bet on the Bulls to win the NBA Finals. If George has a logarithmic utility-of-wealth function and if his current wealth is $1,000,000, what must he believe is the minimum probability that the Bulls will win?

2. Show that if an individual’s utility-of-wealth function is convex then he or she will prefer fair gambles to income certainty and may even be willing to accept somewhat unfair gambles. Do you believe this sort of risk-taking behavior is common? What factors might tend to limit its occurrence?

Reference no: EM13339956

Questions Cloud

Calculate the center of mass of a system of a system of 1 kg : Calculate the center of mass of a system of a system of 1 kg weights located at the following positions: (1,4),(-1,4),(-1,-4),(1,-4),(1,5),(1,7)
Estimate the root mean squared displacement of ribosome : The eukaryotic ribsome is an extremely large macromolecular complex that may be 25 nanometers in diameter or larger. Estimate the diffusion constant of a ribosome in m2/sec and Picometers2/sec.
What is the firms profit-maximizing price-quantity : Graph the three different situations of parts (a), (b), and (c). Using your results, explain why there is no real supply curve for a monopoly.
Determine the change in mass of the water : 1.7 kilograms of water are changed  from ice at 0?C into liquid water at 0?C, determine the change in mass of the water
What must he believe is the minimum probability that the : George is seen to place an even-money $100,000 bet on the Bulls to win the NBA Finals. If George has a logarithmic utility-of-wealth function and if his current wealth is $1,000,000, what must he believe is the minimum probability that the Bulls will..
Calculate the sampling rate at which the signal is sample : 1. Explain what is meant by baseband signal and baseband transmission. 2. Explain one approach for PWM modulation and detection (demodulation). Draw the required circuits and diagrams.
What is the final temperature at thermal equilibrium : Two 52 g ice cubes are dropped into 230 g of water in a thermally insulated container. If the water is initially at 27°C, and the ice comes directly from a freezer at -21°C, what is the final temperature at thermal equilibrium
Does a competitive industry even though levels of output and : Suppose a monopolist produces alkaline batteries that may have various useful lifetimes (X). Suppose also that consumers’ (inverse) demand depends on batteries’ lifetimes and quantity (Q )purchased according to the function
How far does the mug move relative to horizontal tabletop : A magician pulls a tablecloth from under a 200 g mug located 30.0 cm from the edge of the cloth. The cloth exerts a friction force of 0.100 N on the mug, and the cloth is pulled with a constant acceleration of 2.90 m/s2

Reviews

Write a Review

Microeconomics Questions & Answers

  What would you recommend in terms of quantity changes

Libertyville has two optometrists, Dr. Jones (J) and Dr. Smith (S). Each optometrist can choose to advertise his service or not. The net revenue to each optometrist, in thousands of dollars, is listed on the payoff matrix below

  Determinant of demand for electronics in china

Prepare a report - The Report should including minimum the below points : Determinant of Demand for Electronics In China

  Determine short run impact

A new taco making equipment that is same in size and expense to hog dog carts has encouraged more street vendors to begin selling tacos.

  The city of rochester is thinking of expanding its airport

The City of Rochester is thinking of expanding its airport. The expansion will increase travelers' consumer surplus by $100 and airlines' producer surplus by $200, while costing taxpayers only $50. However, the expanded airport will be much noisier.

  Input factors of production for long run cost

Discuss why a firm's long-run costs are minimized when it employs the mix of resources such that the ratio of all of the resources' marginal products to their wage rates are equalized. Employ a graph to illustrate.

  Arnold corporation has been authorized to issue

Arnold Corporation has been authorized to issue 40,000 shares of $100 par value, 8%,noncumulative preferred stock and 2,000,000 shares of no-par common stock

  Difference between short run and long run

Describe the difference between short run and long run as they are used in economics. Differentiate between Economics of scale and Diseconomies of scale.

  Determining fixed-marginal and average costs

Consider a firm with total short-run cost function C=a+b.Q. New legislation means that it should pay an environmental tax which is the fixed sum, independent of whether it produces any output.

  What drives excessive technology investments in each model

Explain how either the Newhouse model or the Physician Workshop model could explain why hospitals might inefficiently over-invest in expensive, new technologies. What drives excessive technology investments in each model

  Enough welfare or subsidies to the poor

The south african government is not providing enough welfare to the poor

  Prepare a memorandum of association under uae companies

A brief introduction of your company and reason for choosing this form of business organization and prepare a Memorandum of Association under UAE commercial companies law 1984 for your company

  Expression for marginal product of labor

Find an expression for the marginal product of labor, MP L , when the amount of capital is fixed at 16 units, and then illustrate that mardinal producer of labor depends on the amount of of labor hired by calculating the marginal porducto of labor..

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!

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