Question: #3 MICRO - THESE PROBLEMS 3. A poor fellow somehow acquires a lottery ticket that with equal probabilities will be worth 20,000 ducats or 0.

#3 MICRO - THESE PROBLEMS 3. A poor fellow somehow acquires a lottery ticket that with equal probabilities will be worth 20,000 ducats or 0. His von Neumann-Morgenstern utility function is the natural log of his wealth. In the absence of the lottery ticket, his wealth is X. He is offered an opportunity to sell this ticket for 9000 ducats. How large does X need to be in order to refuse this offer? (You will probably want to use a calculator.) A rich fellow whose von Neumann-Morgenstern utility function is the natural log of his wealth is considering buying this lottery ticket from the poor fellow for a price of 9,000 ducats. How wealthy does the rich fellow have to be so that he would choose to buy it

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