What is my expected benefit?, Microeconomics

Assignment Help:
I am risk averse, and trying to maximize my expected value of c0, 5, where c is my fortune.
I have 50.000 in cash, and also art with a value of 200.000 which I keep in my
basement. I live in an area that may experience basement flooded during heavy
rains. If my basement is flooded, my art only 40.000 worth.
The probability of a flooded basement is 1 per cent.

Related Discussions:- What is my expected benefit?

Introduction, What is micro static analysis?

What is micro static analysis?

Oligopoly, criticism of cournot model

criticism of cournot model

Measuring the economic value of education , Measuring the Economic Value of...

Measuring the Economic Value of Education A review of research works regarding the economic value of education shows that it developed in four different directions. They a

Market failure, Ask question using health care as an example explain how ma...

Ask question using health care as an example explain how markets fail due to different types of externalities arising from jointness in production and consumption

Real business cycle theory, REAL BUSINESS CYCLE THEORY: The parable th...

REAL BUSINESS CYCLE THEORY: The parable that motivates this discussion originated with Edmund Phelps and invites you to think that all men (and women) are islands. They have p

Physical capital, Physical Capital: A tangible tool, machine, building or o...

Physical Capital: A tangible tool, machine, building or other productive asset that is used to produce other goods or services. Pollution: Many economic activities involve disch

Home work, how do minimum units cost change with changes in fixed cost

how do minimum units cost change with changes in fixed cost

Explain general equilibrium, Q. Explain General Equilibrium? General Eq...

Q. Explain General Equilibrium? General Equilibrium: Neoclassical economics presumes that production, employment, investment and income distribution are all determined by a con

Supply-and-demand, Suppose we divide Canada into three regions; the west, t...

Suppose we divide Canada into three regions; the west, the centre and the each

Write Your Message!

Captcha
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