-The above figure shows Bob's utility function.He currently has $100 of wealth,but there is a 50% chance that it could all be stolen.Bob will buy theft insurance to cover the full $100
A) as long as it does not cost more than $25.
B) as long as it does not cost more than $50.
C) as long as it does not cost more than $70.
D) at any price.

Question

-The above figure shows Bob's utility function.He currently has $100 of wealth,but there is a 50% chance that it could all be stolen.Bob will buy theft insurance to cover the full $100
A) as long as it does not cost more than $25. 
B) as long as it does not cost more than $50. 
C) as long as it does not cost more than $70. 
D) at any price.

Quizplus · Accepted Answer

The Answer of 
-The above figure shows Bob's utility function.He currently has $100 of wealth,but there is a 50% chance that it could all be stolen.Bob will buy theft insurance to cover the full $100
A) as long as it does not cost more than $25. 
B) as long as it does not cost more than $50. 
C) as long as it does not cost more than $70. 
D) at any price.

-The Above Figure Shows Bob's Utility Function