-Adriana wants to try working as an independent contractor this summer. She has a 50 percent chance that she will make $9,000 and 50 percent chance that she will make nothing. Her utility of wealth curve is shown in the figure above. What minimum fixed salary should another employer offer Adriana to persuade her to work for his firm?
A) $1,001
B) $2,001
C) $3,001
D) $4,501

Question

-Adriana wants to try working as an independent contractor this summer. She has a 50 percent chance that she will make $9,000 and 50 percent chance that she will make nothing. Her utility of wealth curve is shown in the figure above. What minimum fixed salary should another employer offer Adriana to persuade her to work for his firm?
A) $1,001 
B) $2,001 
C) $3,001 
D) $4,501

Quizplus · Accepted Answer

The Answer of 
-Adriana wants to try working as an independent contractor this summer. She has a 50 percent chance that she will make $9,000 and 50 percent chance that she will make nothing. Her utility of wealth curve is shown in the figure above. What minimum fixed salary should another employer offer Adriana to persuade her to work for his firm?
A) $1,001 
B) $2,001 
C) $3,001 
D) $4,501

-Adriana Wants to Try Working as an Independent Contractor This