Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Risk Aversion and Income
- Variability in potential payoffs increases risk premium.
- Example:
* The expected income is $20,000, but expected utility falls to 10.
Expected utility = .5u($) + .5u($40,000)
= 0 + .5(20) = 10
* The certain income of $20,000 has a utility of 16.
* If person is required to take the new position, the utility of them will fall by 6.
* The risk premium is $10,000 (that is they would be willing to give up $10,000 of the $20,000 and have same E(u) as the risky job.
* Thus, it can be said that greater the variability, greater the risk premium.
* Indifference Curve
- Combinations of the3 expected income & standard deviation of income which yield the same utility.
Foreign investment: To attract foreign investment – Developing Plans are used as a means of attracting foreign investment or foreign aid.Foreign government and international o
shows teh steps in unitary mehod
leat cost factor combination
1. Explain- a. Tragedy of commons b. Free rider problem c. Diminishing marginal utility d. Diseconomies of scale e. Tax incidence f. Elasticity g. Gains from
A type of economy (like in Europe in the Middle Ages) which is primarily agricultural however productive enough to support a class of merchants andartisans. Feudal societies are co
Define structural isomers and its types Coordination compounds that having same compositions but the different bonding attachments. Types of structural isomers Hydration isomers
diagrammatically condition of consumer equilibirium
price falls and demand is elstic
Consumers purchase a house or multiple dwellings for a number of reasons. But what is the rationale behind their decision to buy and/or sell a house, flat or apartment? Do consumer
Allocative Efficiency The production of products and services such that stages of production are closely tied to levels of customer demand.
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd