Your utility function is M. Your current wealth is $400,000. There is a 0.00001 probability that your

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Your utility function is √M. Your current wealth is $400,000. There is a 0.00001 probability that your legal liability in an automobile accident will reduce your wealth to $0. What is the most you would pay for insurance to cover this risk?

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Microeconomics and Behavior

ISBN: 978-0078021695

9th edition

Authors: Robert Frank

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Question Posted: Dec 12, 2014 10:21 AM

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Your utility function is M. Your current wealth is $400,000. There is a 0.00001 probability that your

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Microeconomics and Behavior

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