Question: 2. Scientists have discovered a new technology that has a 1% chance of generating as much clean energy as humans could ever want and a

 2. Scientists have discovered a new technology that has a 1%

2. Scientists have discovered a new technology that has a 1% chance of generating as much clean energy as humans could ever want and a 99% chance of blowing blowing up. The benefits of each of these outcomes are: Likelihood Outcome Clean Energy Blows Up 1% | Benefit $100 trillion | -$0.05 trillion (i.e. negative $50 billion) 99% How much would benefit-cost analysis suggest this technology would be worth? Why might this value be too high

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!