A-C Please

A.) Based on the table above: What level of ChatGPT should Jonah use in his firm to maximize his net profit (gross profit - expected payments for added insurance premiums)? Explain.

B.) If the law in Jonahs state shifted to no liability for errors in title work, he would no longer have the risk of malpractice lawsuits and he would no longer have to pay for malpractice insurance. In a no liability scenario, what level of ChatGPT should Jonah use to maximize profits? Explain

C.) If instead the state has a negligence standard where you are considered negligent if more than 2% of your title work has errors, therefore those with higher than probability of 0.02 have to pay for malpractice coverage, what level of ChatGPT should Jonah use? Explain.

Jonah has estimated his profits and the risk of errors in title work for different levels of use of ChatGPT in his practice, ranging from no use of ChatGPT to using it for everything. The more he uses ChatGPT, the more tasks he can complete and the more money he'll bring in (he charges flat fees, so he brings in money for each task completed), but also the higher risk of errors. When Jonah is sued for malpractice, he has malpractice insurance that defends him in the lawsuit and pays out any damage awards. However, malpractice insurance uses experience rating that means his premiums go up each time he is sued. Each time he creates an error in title work, Jonah expects to have to pay an additional $10,000 in insurance premiums