Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Francine (see attached) Brandon(see attached A mathematically fair bet is one in which the amount won will on average equal the amount betfor example, when

  1. Francine (see attached)
  2. Brandon(see attached
  3. A "mathematically fair bet" is one in which the amount won will on average equal the amount betfor example, when a gambler bets $100 for a 10 percent chance to win $1,000 ($100 = 0.10 $1,000). Assuming diminishing marginal utility of dollars, explain why this is not a fair bet in terms of utility.

4. This link is from a PBS seqment on Emily Oster, an economics professor at Brown. Oster opines about several aspects of parenting.

a. Oster invokes the concept of marginal utility (MU) in discussing parenting and childcare, what activity does she refer to, and what does she say about MU?

b. Given your answer above, consider the case for Consumer Equilibrium; Utility Maximization. Suppose there was just one other activity/good that parents consume (feel free to substitute your own ideas here). What would be the conditions for Consumer Equilibrium/UtilityMaximization between these 2 goods or activities, and how would you define the variables necessary for equilibrium to exist?

c. Given your answer in #2, are the definitions of the variables you defined different for Oster than for other parents? In particular, Oster's MU is by definition different from other parents. What about the other variables you defined in #2, how do they differ across parents? Also, what about the larger question of affordability, since Consumer Equilibrium does not address this, is there an additional question of equity and quality of childcare that might be addressed?

oster

You are Brandon Johnson.docx

Francine is a a dental floss tycoon living in Montana (1) (2) (3) (1).docx

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics Principles For A Changing World

Authors: Eric Chiang

4th Edition

1464186677, 978-1464186677

More Books

Students also viewed these Economics questions

Question

=+How might they measure their success?

Answered: 1 week ago

Question

Why was the phi phenomenon so important to Wertheimer?

Answered: 1 week ago