The utility function of an individual is U(w)= In(w+1). The individual will receive x with 1...

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The utility function of an individual is U(w)= In(w+1). The individual will receive x with 1 3 probability 4 and y with probability 4. The market opportunity equation becomes x+-y=10 4" | 4 . For what value of x and y the individual ensures complete insurance? (а) х-10, у310 (b) x-8, y-32/3 (c) No such value exists (d) x-16, y-8 The utility function of an individual is U(w)= In(w+1). The individual will receive x with 1 3 probability 4 and y with probability 4. The market opportunity equation becomes x+-y=10 4" | 4 . For what value of x and y the individual ensures complete insurance? (а) х-10, у310 (b) x-8, y-32/3 (c) No such value exists (d) x-16, y-8

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We have 1x 3y 4 4 Now for x 8 and y 32 in ... View the full answer