Ashton has the utility of wealth curve shown in the above figure. Ashton owns a sports car worth $30,000, and that is his only wealth. Ashton is a careless driver and there is a 30 percent chance that he will have an accident within a year
If he does have an accident, his car is worthless. Suppose all sports cars owners are like Ashton. An insurance company agrees to pay each person who has an accident the full value of their car. The company's operating expenses are $1,000. What is the minimum insurance premium that the company is willing to accept? A) $3,000 per year
B) $6,000 per year
C) $10,000 per year
D) $15,000 per year
C
Economics
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A) the methods of producing ideas. B) persuading others of the validity of one's ideas. C) putting ideas in a form capable of approval in a "yes" or "no" vote. D) the expression of ideas in mathematical form.
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