Describe the meaning of a concave utility curve.

(2) Assume that an individual's utility function is U(X)=x^2/3. Her initial wealth is $10,000. So that her initial utility is 10000^2/3=464.16. She faces a 5% probability of losing all of her wealth. What is the maximum amount that she is willing to pay for full insurance? Show your steps.

(3) Without calculation, is the maximum amount that she is willing to pay for full insurance higher or lower than in (2) if her initial wealth were higher and she faces the same risk and has the same utility function?