subject
Business, 19.10.2021 14:00 aliceohern

Veronica is going to sell two vases to a dealer. She can sell each vase for $10. In order to bring her vases to the dealer, Veronica needs totake a bus. There is a 50% chance that allthe vases carried on one bus trip will be broken during the trip and a 50% chance that noneof the vases carried on one bus trip will be broken during the trip. A roundtrip bus ticket costs $1. Veronica’s net income is given by the revenues from the sale of her vases minus the cost of her bus trip(s). Requried:
a. How many trips would Veronica make if she were risk-neutral?
b. Suppose that Veronica’s utility from income is . What is the expected utility of net income when Veronica takes both vases on one bus trip? And when she makes two trips? What strategy is preferred?
c. Would Veronica’s preferred strategy change if the bus fare were increased to $3?

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 22:30, makaalbarnthemeister
Owning a word is a characteristic of a powerful a. productb. servicec. organization d. brand
Answers: 2
image
Business, 22.06.2019 01:20, MendesArmy333
All of the industries and businesses in the country of marksenia are privately owned and sell products at different prices that are not controlled by the government or any other organizational body. consumers in marksenia are free to buy as much of the products as they like from the businesses they want. the country of marksenia has a
Answers: 1
image
Business, 22.06.2019 02:00, johnkings140
Alandowner and his neighbor purchased adjoining undeveloped lots. after both built homes on their respective lots, the landowner suggested to the neighbor that a common driveway be built where the two lots joined. the neighbor agreed. the landowner and the neighbor split the cost of constructing the driveway and entered into a written agreement to equally share the costs of its upkeep and maintenance. the agreement was recorded in the county recorder's office. two years later, the neighbor built a new driveway located entirely on his lot. the common driveway, which the landowner continued to use but which the neighbor no longer used, began to deteriorate. the landowner asked the neighbor for money to maintain the common driveway, but the neighbor refused to contribute. three years later, the neighbor conveyed his lot to a friend. the friend entered into possession and used only the driveway built by the neighbor. by this time, the common driveway had deteriorated badly and contained numerous potholes. the landowner asked the friend to pay half of what it would take to repair the common driveway. the friend refused. the landowner repaired the driveway and sued the friend for 50% of the cost of repairs. will the landowner prevail?
Answers: 2
image
Business, 22.06.2019 09:30, j1theking18
Stock market crashes happen when the value of most of the stocks in the stock market increase at the same time. question 10 options: true false
Answers: 1
You know the right answer?
Veronica is going to sell two vases to a dealer. She can sell each vase for $10. In order to bring h...

Questions in other subjects: