Leisure time is not subject to diminishing marginal utility

A firm uses ________ for goods which the consumer takes pride in owning

A) price skimming B) prestige pricing C) penetration pricing D) predatory pricing

Continuing with the same vacation-insurance company from the preceding question, is there any vacation-day price that would both strictly increase the family's expected utility (compared to no insurance) and strictly increase the profits of the risk-neutral insurance company?

a. Yes, two days. b. Yes, three days. c. Yes, four days. d. No.