Socrates owns just one ship. the ship is worth $200 million dollars. if the ship sinks, socrates loses $200 million. the probability that it will sink is .02. socrates’ total wealth including the value of the ship is $225 million. he is an expected utility maximizer with von neuman-morgenstern utility u(w) equal to the square root of w. what is the maximum amount that socrates would be willing to pay in order to be fully insured against the risk of losing his ship?

Abond is issued for less than its face value. which statement most likely would explain why? a. the bond's contract rate is higher than the market rate at the time of the issue. b. the bond's contract rate is the same as the market rate at the time of the issue. c. the bond's contract rate is lower than the market rate at the time of the issue. d. the bond isn't secured by specific assets of the corporation.

Acompany that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. prior to buying the new equipment, the company used 6 workers, who produced an average of 79 carts per hour. workers receive $16 per hour, and machine coast was $49 per hour. with the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by four carts per hour. a) compute the multifactor productivity (mfp) (labor plus equipment) under the prior to buying the new equipment. the mfp (carts/$) = (round to 4 decimal places). b) compute the productivity changes between the prior to and after buying the new equipment. the productivity growth = % (round to 2 decimal places)

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr