Question: Consider a state-contingent consumption problem for Ben. Ben has $400 to start with, and his utility function is u(W) = W where W is his

Consider a state-contingent consumption problem for Ben. Ben has $400 to start with, and his utility function is u(W) = W where W is his wealth. He faces a financial loss of $150 with probability 0.2. He also has an opportunity to purchase an insurance at the price of $0.20 for $1 coverage. Then he will buy $____ coverage of the insurance.

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