Hi! Can you help me with the question below?  Todd has a job that presents zero risk of death or injury, but has always craved something more exciting. His current annual salary is $50,000. He has been offered a job on an Alaskan fishing boat that will pay$55,000 annually. This new job offer, however, comes with a 10% risk of severe injury that will cause Todd to have no income. Which of the following is true? (Assume the severe injury has no relevant implications besides reducing Todd’s income) A) Todd will definitely take the new job if he’s risk averse.B) Todd will definitely take the new job if he’s risk neutral.C) Todd will definitely decline the new job if he’s risk averse or risk neutral.D) Todd will definitely accept the new job if he’s risk seeking.E) Not enough information to determine.

1. Individual Problems 19-1 In the late 1990s, car leasing was very popular in the United States. A customer would lease a car from the manufacturer for a set term, usually two years, and then have the option of keeping the car. If the customer decided to keep the car, the customer would pay a price to the manufacturer, the "residual value," computed as 60% of the new car price. The manufacturer would then sell the returned cars at auction. In 1999, manufacturers lost an average of $480 on each returned car (the auction price was, on average, $480 less than the residual value). Suppose two customers have leased cars from a manufacturer. Their lease agreements are up, and they are considering whether to keep (and purchase at 60% of the new car price) their cars or return their cars. Two years ago, Becky leased a car valued new at $18,500. If she returns the car, the manufacturer could likely get $12,950 at auction for the car. Eileen also leased a car, valued new at $19,000, two years…

20-2 A collogue tells you that he can get a business loan from the bank, but he rates seem very high for what our collogue considers a low risk loan. Give an adverse selection explanation for this, and offer advice to your friend on how to solve the problem. Give moral hazard explanation for this, and offer advice to your friend on how to solve the problem.

After graduation, you face a choice. You can work for a multinational consulting firm and earn a starting salary (including benefits) of $45,000, or you can start your own consulting firm using $6,000 of your own savings. If you keep your money in a savings account, you can earn an interest rate of 5 percent. You choose to start your own consulting firm. At the end of the first year, you add up all of your expenses and revenues. Your expenses include $14,000 for rent, $1,600 for office supplies, $22,000 for labor, and $4,900 for telephone expenses. After operating your consulting firm for a year, your total revenues are $102,000. Instructions: Enter your answers as a whole number. a. What is your accounting profit? $ 44,500 8 b. What is your economic profit? $ 4,150

Tyler just wrecked his new Nissan, and the accident was his fault. The owner of the other vehicle got two estimates for the repairs: one was for $803 and the other was for $852. Tyler is thinking of keeping the insurance companies out of the incident to keep his driving record “clean.” Tyler’s deductible on his comprehensive coverage insurance is $500, and he doesnot want his premium to increase because of the accident. In this regard, Tyler estimates that his semi-annual premium will rise by $60 if he files a claim against his insurance company. In view of the above information, Tyler’s initial decision is to write a personal check for $803 payable to the owner of the other vehicle. Did Tyler make the most economical decision?What other options should Tyler have explored? In your answer, be sure to state your assumptions and quantify your thinking.

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In the Hawaiian Beach Boy surf board vendor scenario, what if the fine was increased to $190 but the probability of a fine decreased to one in 20 days, 5%?  What would be the expected value – Exp(RS) --  of continuing to rent surfboards?  Assume the other numbers stay the same.  He makes $300/day and to rent boards from friends costs him $100 a day.  So, he makes $200 a day.  Write out the expected value formula, plug in the numbers, and show the math.  Hint: the Exp(RS) should be higher than the previously calculated $160.

Alana wishes to obtain auto insurance. She wants 100/300/100 liability coverage, $250 deductible collision and full coverage comprehensive. She lives in territory 2 and has been assigned to driver class 2 with a rating factor of 1.25. Based on Table 19-6 and Table 19-7, what would be her total premium, if her three-year-old car were in model class L? (Round your answer to the nearest cent.) a. $355.00 b. $365.00    c. $456.25 d. $465.38

Please help me fix c. Thanks!

You want to travel to Las Vegas to celebrate spring break and your "A" in your microeconomics class! You are trying to figure out if you should drive or fly. A round trip airline ticket from Riverside to Las Vegas costs $350 and flying there and back takes about 5 hours. Driving roundtrip to Las Vegas costs about $50 in gas and takes about 10 hours. Other things constant, what is the minimum amount of money that you would have to expect to make by gambling in Las Vegas to induce you as a rational individual to fly rather than drive? O $10 an hour $60 an hour O $70 an hour O $300 an hour