Uncertainty

 

 

 

I’m working on a micro economics question and need an explanation to help me understand better.

Kevin is a risk-neutral person who owns a construction firm with production function Q = 2L1/2, where L is the number of workers employed. The price of output is set at

p = 1. He can only get workers from an employment agency called Belkoni Ltd. Belkoni charges w > 0 per worker. It either sends exactly the number of workers requested by Kevin with probability, α, or sends no workers with probability (1 − α), where 0 < α < 1. Kevin has to place a request for workers and pay the total cost before the workers are sent to his firm and if Belkoni fails to send the workers, it does not compensate Kevin (e.g., it is prohibitively costly to legally get Belkoni to honor its obligation). Kevin can buy insurance against this risky event but he can only buy full insurance. For each dollar of insurance coverage, the premium is β dollars, where 0 < β < 1. So if the total cost of workers requested by Kevin is $X, he pays an insurance premium of $βX and is paid $X if Belkoni fails to send the workers.

a) Assuming that Kevin buys insurance, derive his optimal worker request, L*. (b) Determine the effect of an increase in α on Kevin’s optimal worker request, L*.

(c) In part (a), you found his optimal worker request, L*, assuming that he bought insurance. But will he buy insurance at all? Determine whether this assumption is valid.

 

 

Sample Solution

 

 

 

 

 

 

 

 

 

Hamlet and Revenge

Hamlet and retribution of vengeance have made numerous individuals breakdown. The idea of its utilization drives individuals to act deceitfully through annoyance as opposed to reason. Vengeance is simple sensible feeling; one turn merits another round. In any case, this is a risky hypothesis. Vengeance is the primary topic in Hamlet. Fortinbras, Laertes, and Hamlet are looking for vengeance for their dad’s demise. In any case, thusly, every one of the three individuals rely upon feeling as opposed to suspecting and make an extremely large wager.

Hamlet and retribution are hopeless organizations attempting vengeance and those looking for retribution (Hamlet) inevitably face demise after the wrongdoing. History of misfortune of retribution Prosser’s view on Hamlet’s vengeance “Saints are asked to fight back, as most misfortunes of retaliation, casualties or wrongdoings are legitimately identified with the hero” (Prosser) of retribution The impacts of misfortune incorporate Julius Caesar, Macbeth and Andronis. In Shakespeare ‘s paper by Shakespeare, Shakespeare centers around vengeance and builds up the idea of death in the play. What is the awfulness of the retribution of the Elizabethan time? This is a misfortune, its thought process is vengeance, and its fundamental plot incorporates the procedure of counter. The awfulness of retribution in the long run prompted the passing of the killer and the Avengers himself. In misfortune of vengeance, we need three letters.

Shakespeare’s “Hamlet” shows the overall components found in the awfulness of the vengeance of the renaissance (“misfortune of retribution”). Be that as it may, despite the fact that Hamlet is a misfortune of retribution, Shakespeare convolutes the fundamental vengeance plot by making three retribution plots. By including significant developments, Shakespeare makes ‘Ship of the Concentric Revenge Miwa’ (Frye 90) which is certainly not a physical legend yet an apparition, not a phantom, yet a scholarly saint who is an issue. did. viewpoint

In Shakespeare’s ‘Hamlet’ retribution, Shakespeare vindicated as the subject of the considerable number of works. Retribution assumes a significant job in the improvement of Fortinbras, Prince of Norway, Hamlet, the Prince of Denmark, and the child of Polonius Laertes. Each of the three requested vengeance for their dad’s homicide. In Hamlet, vengeance can be deciphered as another character. Everybody looking for vengeance will defeat it. To begin with, after each murder every child has a reasonable activity plan.

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