Question: 1. Suppose your utility function is U = Ind/10,000). If your utility falls below 0, you die. a. Show that this utility function exhibits a

1. Suppose your utility function is U = Ind/10,000). If your utility falls below 0, you die. a. Show that this utility function exhibits a positive but diminishing marginal utility of income. b. Suppose you purchase a $150 Ninja Professional Blender. (I just bought one it is awesome!) If you estimate that the chance your blender is destroyed in a terrible pia colada accident is 1 in 10 for any given year. What would be the actuarially fair cost of an insurance plan that pays for your blender to be replaced in the case of a beverage-related disaster

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