a wealthy person has a very large investment with no sentimental value but is concerned that it could lose all its monetary value. she decides to buy insurance on this investment, even though her purchase of insurance has a negative expected monetary value for her. this need not violate the rule that we should make the choice with the highest expected utility because of:

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Answer 1

A wealthy person will make the choice of with highest expected utility because of the law of Diminishing marginal utility. This states that with an increase in consumption, the marginal utility deriving from every unit starts declining.

In other words, the law of diminishing marginal utility states that when the consumer starts consuming the unit, it starts decreasing with every unit of consumption.

As utility means the satisfaction or happiness derived from consumption in terms of economics. At certain point when consumption reaches at the highest the level of marginal utility can also become negative where consumer becomes uncomfortable with their consumption.

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Related Questions

A. Explain the problem of scarcity facing countries due to the pandemic?​

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Answer with Explanation:

The pandemic has spread across the globe in a span of few months only and this outbreak has consequently led to global problems. One of which is the "problem of scarcity-facing countries." An example of scarcity which countries are facing is "food scarcity." Due to sudden unemployment, people have no chance of earning money. Money is essential in buying foods. If people don't earn money for a living, they'll surely starve without the welfare or financial aid given by the government. This will result to the country's economic activities plunging. In order to survive, some people will resort to robbery or similar crimes. In fact, cybercrimes has been increasing because many people are online these days. Another scarcity being faced by countries is the scarcity in healthcare professionals. With the rapidly increasing rate of infected people, the healthcare professionals have a hard time keeping up to accommodate all of them.

Chan sports purchases one year of rent on november 1 for $12,000 ($1,000 per month), debiting prepaid rent. on december 31, chan sports would record the following year-end adjusting entry:_______

Answers

The year ending adjustment entry will be -

Rent Expense 2,000 Dr.

           Prepaid Rent 2,000 Cr.

An adjustment entry is one that is made to properly allocate revenue and expenses to each accounting period. It corrects previously recorded journal entries, ensuring that the financial statements at the end of the fiscal year are correct and up to date.

When you make adjustment entries, you are accurately and timely recording business transactions. This is extremely useful for keeping track of your receivables and payables, as well as determining your company's exact profit and loss at the end of the fiscal year.

If you create financial statements without accounting for adjustment entries, your company's financial health will be completely distorted. Net income and equity will be overstated, while expenses and liabilities will be understated.

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I have a question. How do you deal with the pain, of knowing you cant date your crush, who you have liked for 1 and a half years, and knowing that her dad is the reason why. How should i deal with it cause i cant seem to get past it.

Answers

You should know that it isn’t your fault what her dad thinks about you. I’ve been through a similar experience and I’ve learned that it wasn’t my fault, or my doing of what there parents thought about me. If you really do like her, go and tell her. It’s her thoughts on you that matter =)

Answer:

don't worry about it because it is not your fault that her dad does not let you

Explanation:

hopefully he opens up about you

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:

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The management of Unter Corporation is considering an investment with the following cash flows:

Year 1: $50,000
Year 2: $70,000
Year 3: $80,000
Year 4: $90,000
Year 5: $100,000

To assess the investment's attractiveness, the management should evaluate its potential return and the time value of money. One approach is to calculate the investment's net present value (NPV), which considers the discounted value of future cash flows.

Assuming a discount rate of 10%, the present value (PV) of each cash flow can be calculated using the formula: PV = CF / (1+r)^n, where CF is the cash flow, r is the discount rate, and n is the number of years.

Calculating the PV of each cash flow:
PV1 = $50,000 / (1+0.10)^1 = $45,454.55
PV2 = $70,000 / (1+0.10)^2 = $57,851.24
PV3 = $80,000 / (1+0.10)^3 = $62,809.92
PV4 = $90,000 / (1+0.10)^4 = $66,115.70
PV5 = $100,000 / (1+0.10)^5 = $67,488.71

Summing up the present values:
NPV = PV1 + PV2 + PV3 + PV4 + PV5 = $300,720.12

The calculated NPV of $300,720.12 indicates that the investment is financially attractive. A positive NPV implies that the investment's expected returns exceed the initial cost, considering the time value of money. Therefore, Unter Corporation's management should proceed with the investment, as it is likely to generate a favorable return and contribute to the company's financial growth. However, it is crucial to consider other factors such as market conditions, competition, and strategic alignment before making a final decision.

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what type of marketing strategy best exemplifies a straightforward mapping of a product to a customer’s willingness to pay?

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Vertical differentiation strategy is the marketing strategy that best exemplifies the straightforward mapping of the product.

Marketing strategy refers to plans executed by a firms' marketing department which ensure that various plan for reaching prospective consumers and turning them into customers of the products are achieved.

Basically, the differentiation strategy in marketing entails development of product which is unique, different and distinct from its competitors product.

But in this question context, the type of marketing is Vertical differentiation strategy.

The Vertical differentiation strategy involves a firm finding a quality and price mix which will differentiate the brand from its competitors,

Therefore, the type of strategy that best exemplifies a straightforward mapping of a product to a customer’s willingness to pay is the Vertical differentiation strategy.

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The local diner hopes to increase its lunchtime business by 50 percent, even though it is already nearly 50 percent behind its goal for the quarter; this objective would be considered

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Even though the business is way behind on its target, its goal can still be described as Specific and Realistic.

Specific and Realistic goalsTheses are clearly set out and articulated. Effect can be adequately measured. Can be accomplished based on existing resources.

Even though the diner is behind target, increasing by 50% is not unrealistic and can be done with proper planning. The goal is also specific as it is targeted at 50%.

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a buyer and seller enter into an agreement for buyer to purchase seller's 2,000-acre ranch using the trec farm and ranch contract. the parties agree that the sales price is calculated at $2,000 per acre and that the sales price will be adjusted based on the survey. the buyer gets a survey done which indicates that the ranch is 2,400 acres. the seller wants to adjust the sales price accordingly and buyer disagrees. what is buyer's option under the contract?

Answers

Seller may not terminate because the variance is 10%.

A potential buyer, prospective customer, or prospect is any individual or group that expresses interest in purchasing the provided thing of value. It is generally accepted that buying and selling are two sides of the same "coin" or transaction. To complete the value transaction, both the buyer and the seller negotiate. Swapping or selling involves following specific procedures that are governed by underlying laws. If the selling procedure is moral and seller successful, it is expected that all parties involved will profit almost equally. Getting to know one another, assessing whether each party needs the other's highly valued object, and determining whether the values being swapped are equivalent are all steps in the selling and purchasing process.

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When kfc struggled to open its restaurants in japan, it was experiencing one of the disadvantages of going global. Kfc was encountering the:.

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The disadvantage of going global that KFC was encountering when they opened restaurants in Japan is an example of the Liability of Foreignness.

What is the Liability of Foreignness?

This refers to the struggles that a foreign company will face in a country as a result of having to compete with local companies.

KFC in this instance, was most probably finding it difficult to open restaurants because the government didn't want them competing with local franchises.

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When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must

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When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.

This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.

To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.

Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.

Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.

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What is the advantage of opening a credit card account at a young age?
A. It helps people begin to accumulate debt.
B. It allows people to defer their tax payments.
C. It helps people begin to build a credit history.
D. It allows people to take advantage of high interest rates.

Answers

The answer is C
Explanation: when you get a credit card at a young age, it helps your credit go up, so when your older you have good credit!

Answer:

It helps people begin to build a credit history

In general, business writing should be _____.

Answers

Business writing is important in the business community. The writing style and material must be specific in order to elicit a meaningful reaction and be expressive in nature.

What is a company definition in a nutshell?

A business is described as a company or organisation that engages in commercial, industrial, or professional activity. Companies can be either for-profit or non-profit organisations. Limited liability firms, sole proprietorships, corporations, and partnerships are all examples of business structures. The introduction to the business plan provides a basic summary of the business plan, including a brief company description, aims and objectives, and the reason for launching the firm.

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Which of the following is not part of the FASB criteria for revenue recognition?
Allocate the transaction price to the performance obligations in the contract
Recognize revenue when the reporting satisfies the performance obligation
Identify point(s) in the contract where payment is reasonably returnable to the customer
Determine the transaction price
All of the above are FASB criteria for revenue recognition

Answers

The option that is not part of the FASB criteria for revenue recognition is to "Identify point(s) in the contract where payment is reasonably returnable to the customer."

Financial Accounting Standards Board (FASB) is an independent, private, non-profit organization that establishes standards for financial accounting and reporting in the United States. The board develops and publishes accounting standards through a transparent and inclusive standard-setting process that includes consultations with stakeholders, including investors, auditors, regulators, and other interested parties. Under FASB's (Financial Accounting Standards Board) criteria for revenue recognition, revenue is recognized in the financial statements when the following criteria are met: Identification of the contract with a customer, Determination of the transaction price, Allocation of the transaction price to the performance obligations, Recognition of revenue when the performance obligation is met.

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Conducting a trial of the complete marketing plan in a small geographic area that is similar to the larger market the firm hopes to enter is known as

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Conducting a trial of the complete marketing plan in a small geographic area that is similar to the larger market a firm hopes to enter is known as: Market Test.

What is a Market Test?

A market test is a trial that is conducted to know the fate of a product in a future market.

This might require selling the product and introducing it to shops and outlets to see how the consumers will receive it. So, the correct answer is Market Test.

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what are safe the safe margins in Premiere pro?

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With the help of Safe Margin overlays in Premiere Pro, you may confine your video, picture, and text to the safe region using visual cues or borders.

On your monitor, the safe margins tool draws two rectangles: one for the action safe zone and the other for the title safe region. The movement should be all contained within the action safe rectangle, which is 10% smaller than the entire frame.

This region can be regarded as the television screen's "margin" because picture elements are typically kept out of it to form a buffer around the border of the screen and prevent elements from piling up against it.

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Estate at Will Definition

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Tenancy at will, also known as an estate at will, is a property tenure that does not involve a lease or any other form of formal or written agreements, and is only subject to the will of the landlord and the tenant.

Hope this helps have an excellent day!

When a tenant, the owner, or the landlord has a tenancy-at-will, any of the parties may end it at any moment.

How do holding over and tenancy at will differ from one another?

A tenant becomes a tenant by sufferance if, after the lease has ended, he remains in possession without the landlord's permission. A tenant cannot be referred to as a tenant holding over or a tenant at will unless he will continue to live there with the landlord's permission. "

How may a tenant in California be evicted at any time?

If a tenant (unwanted house guest) is served with a 30 day notice to quit, the landlord (or owner) in California must comply with the California Civil Code and Code of Civil Procedure in order to end the tenancy at will.

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On March 5 PV Inc purchased $3,300 worth of merchandise from Panther Supply with the terms 2/10,n/30 On March 14, PV Inc paid Panther Supply the amount owed less the discount. Show the journal entry for March 5 and March 14 a

Answers

I need help on my question

PLZ HELP EXTRA POINTS!!!
2. Which of the following statements does NOT accurately describe the Supreme Court decision in Brown v. Board of Education?

A. It reversed the earlier decision in Plessy v. Ferguson.
B. It held that segregation by race in public education is unconstitutional
C. It quickly brought about integration of schools in this country.
D. It struck down the separate-but-equal-doctrine.

Answers

Answer:

"Sweatt struck down “separate but equal” graduate and professional schools. Brown struck down “separate but equal” public schools."

Explanation:

The Supreme Court decision in Brown v. Board of Education struck down the separate but equal doctrine which does not accurately describe. The correct option is D.

What was the decision of the Supreme Court in Brown v Board of Education?

The opinion of the unanimous Court was delivered by Chief Justice Earl Warren. The Supreme Court ruled that "separate but equal" facilities are inherently unequal and thus violate the Fourteenth Amendment's Equal Protection Clause.

The United States Supreme Court ruled unanimously in Brown v. Board of Education that public school racial discrimination violated the Fourteenth Amendment to the Constitution. The 1954 decision stated that segregating education programs for white and African American students was inherently unequal.

Thus, the ideal selection is option D.

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which resource management activity identifies and verifies that personnel

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Credentialialing


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llus Patrick is selling a new hair product. He hopes to sell 10 bottles a month if he spends a one-time $100 on advertising. He is selling each bottle for $12. The product costs him $5.00 to make per bottle. What would the planned profit be after one year of sales?
A. $600 B. $740 C. $1050​

Answers

Answer:

B. $740

Explanation:

In the given scenario we will be analysing the cost of production versus the revenue earned by Patrick. The difference between the two will give our profit

Total number of bottles produced a year = 10 * 12 = 120 bottles

Cost of production = Advertising + manufacturing cost

Cost of production = 100 + (120 * 5) = $700

Revenue = 120 * 12 = $1,440

Profit = 1,440 - 700 = $740

What is an optical cue?

Answers

answer well they  provide depth information when viewing a scene with both eyes.

i don't know how else to explain it

intro to business edmentum notes for unit 3 and 4? vv high points

Answers

Answer:

The notes can be found on brain.com someone is giving out the notes

Explanation:

I don't remember his name but if you ask nicely then them notes will be yours.

In a DPP, a general partner is all of the following except A) one who buys and sells the program's property. B) one who appoints the property manager. C) a key executive who makes day-to-day business decisions. D) one who has limited liability.

Answers

Answer:

I believe that the answer is B

______ Is a market in which a large number of suppliers compete with each other to satisfy the needs and wants of a large numbers of consumers at a competitive price.???

Answers

Answer : Monopolistic competition

Answer:

Monopolistic Competition

Explanation:

In a monopolistic competitive market, there are large numbers of sellers who do not sell identical products instead they sell differential products. They compete with each other at a competitive price. The products could be differentiated in many ways including quality, style, location and even brand name. Since they compete at a competitive price, if there is a substantial rise in the price of any of the products, the buyers could quickly shift from one product to another. The most crucial factor behind product differentiation is because of geographical factors. Under a monopolistic competitive market, the sellers do not have any influence over customer loyalty and limited control over the price.

which stakeholders’ interests are true for a firm using the stakeholder theory of a firm?

Answers

Stakeholders’ interests are true for a firm using the stakeholder theory of a firm will be Normative.

A stakeholder would be a party with an interest in a business who has the potential to influence or be influenced by it. A typical corporation's investors, employees, clients, and suppliers make up its main stakeholders.

Stakeholder Theory would be a theory about capitalism that emphasises the connections between a company's stakeholders, including its clients, vendors, employees, investors, and communities. According to the notion, a company ought to provide value for all parties involved, not just shareholders.

Therefore, the correct answer will be option (a)

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The given question is incomplete, the complete question is:

Which stakeholders’ interests are true for a firm using the stakeholder theory of a firm?

a)Normative

b)Descriptive

c)Fiduciary

d) Instrumental

Discovering a treatment for lung cancer would most satisfy which of these personal benefits of work?

Answers

Answer:

4 ling cancer u have to have the right medicine

At 2:15 pm ET, a customer gives his registered representative a market order to buy 100 shares of ABC at the close. What should the registered representative do with the order

Answers

A customer places a market order with his registered agent at 2:15 PM EST to purchase 100 shares of ABC at the close. How should the order be handled by the registered representative? Send the directive down to the floor right away. At closing, the registered representative must sign the order ticket.

MarketsOrder: What Is It?By submitting a market order, an investor can instruct a broker to buy or sell stocks, bonds, or other assets at the best price that is currently being provided on the financial market.For investors, it is typically the default choice for buying and selling. There will be lots of interested buyers and sellers accessible if the asset is a well-known exchange-traded fund (ETF) or a large-cap stock. This means that an investor's market order will be filled quickly and at a price that is very close to the most recent advertised price.The primary alternative to a market order is a limit order, which directs the broker to purchase or sell only at a specific price.

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Select the correct answer.
Kruger Motors Inc took a loan from a bank of $1,000,000 on June 1, 2010. The loan was to be repaid in five years. Kruger's accounting year end is on December 31. Where will this loan amount feature in the company's balance sheet as of December 31, 2014.
A. fixed assets
В. current assets
C. long-term liabilities
D. current liabilities ​

Answers

Answer:

C

Explanation:

1. Code: Put Roar Over Baby At Bath In Lipstick In Tanks Yeti

2. Code: Eat Dinner Use All Cathy All Tea Eat Dinner-Gill Use Eat Snake Snort

3. Code: All Limp Wimp Any Yeti Snakes  C

Why is it important to write a zero-based budget every month?

Answers

Answer:

It is important to write a zero-based budget every month because the zero-based budget ensures that every dollar you make is assigned a specific purpose.

Explanation:

Ian is interested in purchasing bonds, but he is looking for bonds that aren’t related to the government. Which type of bonds would you suggest he purchase?

treasury bonds

municipal bonds

corporate bonds

general obligation bonds

Answers

Answer:

The principal of a Brady bond is backed by U.S. Treasury bonds that are deposited with the Federal ... A corporate bond has a 12% nominal yield. ... General Obligation Bond's credit risk:.

Explanation:

try it

Treasury bonds are the  type of bonds would you suggest the purchase. Hence, option A is correct.

What is Treasury bonds?

Until they complete, Treasury bonds provide a fixed rate of interest every six months. They are given out for 20 or 30 year contracts. Treasury Direct is where a person may purchase Treasury bonds from a financial institute. Additionally, a person can purchase them from a bank or broker.

Treasury bonds are among the safest assets a person can buy because they are supported by the full faith and credit of the United States Government. They often don't provide a very high return because there is so little chance that you will lose money.

Thus, option A is correct.

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For which of the following applications would you use the geometric average instead of the arithmetic average? Measuring the height of a group of Cal Poly students to get an estimate of the average height across the entire campus Using 10 years of crop yield data to calculate the yield you expect to achieve next year. Using data on the number of students at Cal Poly in 2000 and in 2016 to calculate the average annual enrollment growth at the University Using the last 20 years of annual stock market return data to calculate the annual return that we expect next year

Answers

The application where you would use the geometric average instead of the arithmetic average is: (D) Using the last 20 years of annual stock market return data to calculate the annual return that we expect next year.

The geometric average is more appropriate in situations where the data exhibits compounding growth or multiplication factors, such as investment returns over multiple periods.

It considers the rate of growth or change over time. In the context of calculating annual stock market returns, the geometric average accounts for compounding effects and provides a better estimate of the expected future return.

Therefore, (D) Using the last 20 years of annual stock market return data to calculate the annual return that we expect next year is the correct answer.

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