A manufacturing company owns a factory worth 10,000. Suppose that there is a pos sibility that a ood may damage this factory, in which case it will be worth 1,000. Suppose that the probability of a ood happening is 7r = .1. Also, suppose that there is an insurance contract that will pay the company 1: if the loss occurs in exchange for a 0.13: premium. Company's utility function is U(C1,C'2) = .1\\/a + .9\\/c_2 Where cl is the value of a factory if there is a ood, and (:2 is the value of a factory if there is no ood. Find the level of insurance 1; that this company will purchase, and the amount of insurance premium 0.13; it will have to pay