Question: Intermediate Microeconomics question Sara has a utility function u=5 00100! c, Where c is her consumption in thousands of dollars. If Sarah becomes a clerk,

Intermediate Microeconomics question

Sara has a utility function u=5 00100! c, Where c is her consumption in thousands of dollars. If Sarah becomes a clerk, she will make $30,000 per year for certain. If she becomes a pediatrician, she will make $60,000 if there is a baby boom and $20,000 if there is a baby bust. The robability of a baby boom is 75% and of a baby bust, 25%. A consulting rm has prepared emo graphic projections that indicate which event will occur. What is the most that she should be willing to pay for this information

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