Suppose a Consumer's Expected Utility Function Given Two Possible States

question 9

Multiple Choice

Suppose a consumer's expected utility function given two possible states of nature A and B can be expressed in terms of consumption of food,F,in both states as U(F_A,F_B) = [0.6 × ln(F_A) ] + [0.4 × ln(F_B) ].For this utility function,MU_A is (0.6/F_A) and MU_B is (0.4/F_B) .Without insurance,the consumer can consume 200 in state A but only 50 in state B. The consumer can purchase insurance at a premium of 50 cents per dollar of benefit. What is the value of the insurance she purchases?

• A) $4.74
• B) $4.85
• C) $12.67
• D) $114.87

Recognize and describe the types of bonds (single, double, triple) present in molecules based on their Lewis structures.

Identify the correct Lewis structures for various molecules and ions.

Understand the concept of lone pairs and electron distribution in molecules.

Describe the role and characteristics of resonance structures in molecules.