Business, 17.12.2019 03:31 Mistytrotter

Moe, larry and joe each have 4 dollars to spend on candy at school. their utility function sareum=√cm, ul=clanduj=c2j, respectively, where denotes the consumption ofcandy. the price of candy is $1 per unit. unfortunately there is a 50% chance that donald, the school bully, will mug them on their way buy candy. if that happens they loose all theirmoney.(a) find the expected consumption of candy for each of them.(b) find the expected utility for each of them.(c) assume now that each of them can buy "protection" from the school tough-but-nice guyat $2 per person. which of the three friends will buy it

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Moe, larry and joe each have 4 dollars to spend on candy at school. their utility function sareum=√c...