Scatterbrain Samantha often forgets to lock her house. This has caused the probability of a burglary to be 30%. If her house gets broken into, she faces a property loss of $10,000, otherwise she gets to keep her $100,000 . If Samantha is offered a full coverage insurance policy for her house at $2000, would she buy the insurance?
a. Yes because she gets to now enjoy her wealth risk-free
b. No, because she can take the risk and be better off
c. Yes, because she gains on average with the insurance
d. Both A&C
d
Economics
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Which of the following is true for both perfect and monopolistic competition?
A) Firms produce a differentiated product. B) Firms face a downward sloping demand curve. C) Firms produce a homogeneous product. D) There is freedom of entry and exit in the long run.
Economics